How Long Can Lawyer Hold Settlement Check

How Long Can Lawyer Hold Settlement Check?

If you've recently settled a personal injury case, you might wonder how long it will take to receive your settlement check. A settlement check is usually issued relatively quickly after an agreement is reached. 

However, there are situations where a lawyer can hold a settlement check for some time. This article will explore why a lawyer might have a settlement check and how long they can do so.

Reasons Why A Lawyer Might Hold A Settlement Check

There are several reasons why a lawyer might hold a settlement check:

1. Outstanding Medical Bills: If you have outstanding medical bills related to your injury, your lawyer may hold your settlement check until these bills are paid. You could owe money to your medical providers if you receive a settlement check and use the funds for other purposes before paying off your medical bills.
2. Liens or Subrogation Claims: Sometimes, a third party may have a legal right to a portion of your settlement. This can happen if your health insurance company or workers' compensation insurer covers part of the injury-related medical expenses. If so, your lawyer may hold your settlement check until these liens or subrogation claims are resolved.
3. Further Legal Action: If another legal action is possible related to your injury, your lawyer may hold your settlement check until the matter is resolved. This could occur if there is a chance that the settlement amount could be increased or if there are pending criminal charges related to the injury.
4. Dispute with Insurance Company: If there is a dispute with the insurance company over the settlement check process, your lawyer may hold your settlement check until the matter is resolved. This could occur if the insurance company is disputing liability for the injury or offering a much lower settlement amount you believe you are entitled to.
   

How Long Can A Lawyer Hold A Settlement Check?

The length of time that a lawyer can hold a settlement check varies depending on the circumstances. Generally, a lawyer can keep a settlement check until all outstanding liens and subrogation claims have been resolved and any legal disputes related to the settlement have been resolved.

If there are no outstanding issues related to the settlement, a lawyer typically must distribute the settlement funds to the client promptly. Most states have rules that require lawyers to disburse settlement funds to their clients promptly.

However, it's important to note that distributing settlement funds can take some time. Even if there are no outstanding issues related to the settlement, it can take several weeks or months for the lawyer to receive the settlement check from the insurance company, deposit it into their trust account, and distribute the funds to the client.

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Escrow Accounts

Sometimes, a lawyer may hold a settlement check in an escrow account. An escrow account is a bank account owned by a third party, such as a title company or an attorney, and is used to hold funds to be distributed to another party. When the conditions for releasing the funds are met, the escrow agent will release the funds to the appropriate party.

An escrow account can be helpful when there are multiple parties with a legal claim to the settlement funds or if there is a dispute over the settlement amount. The attorney can guarantee that the money is disbursed equitably and by the settlement agreement by keeping the money in an escrow account.

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What Factors Delay My Settlement Check?

Release Forms: Before issuing a settlement check, the injured party must sign a release form that releases the defendant and their insurance company from any future liability related to the injury. If there are delays in getting the release forms signed and returned, it can delay the issuance of the settlement check.

Processing Delays: After a settlement agreement has been reached, it can take some time for the insurance company to process the payment and issue the settlement check. This can be due to internal procedures or delays in obtaining necessary approvals.

Disputes Over Settlement Amount: A dispute over the settlement amount, either between the parties or with third-party lien holders, can delay the issuance of the settlement check, as you must resolve the matter before the funds can be distributed.

What About Structured Settlement Payments?

Structured settlement payments are a standard option for distributing settlement funds over some time rather than in one lump sum. This payment plan can benefit clients needing more experience or financial knowledge to manage a large sum of money simultaneously.

If you receive your settlement through structured payments, your lawyer will work with an annuity provider to set up the payment plan. The lawyer may hold the initial settlement check until the annuity provider has set up the payment plan, but once it is established, you will make the payments directly to the client.

How Can I Speed Up The Delivery Of My Settlement Check?

One of the best ways to speed up the delivery of your settlement check is to follow any instructions provided by your lawyer carefully. Be sure to sign and return any necessary release forms promptly, provide all required documentation, and respond swiftly to any requests for information or clarification.

Communicate effectively. Maintaining open lines of communication with your lawyer can also help speed up the process. If there are any issues or delays, discuss them with your lawyer and work together to find a solution.

In some cases, it may be possible to negotiate a quicker settlement payment with the insurance company. However, this will depend on the specific circumstances of your case and should be discussed with your lawyer.

Final Words

It is important to carefully follow your attorney's directions to guarantee a smooth and prompt distribution of your settlement payment. This includes:

• Promptly signing and returning any necessary release forms.
• Providing all required documentation promptly.
• Responding quickly to any requests for information or clarification.

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