Reaching a settlement is a big sigh of relief for you and your attorney, especially if it happened after trials. It’s literally a reward for your (and your attorney’s) patience and hard work. However, once you reach a settlement, the next process is recovery. It takes some time before the settlement check reaches your attorney, who has to attend to other obligations, liens, or expenditures before giving you the final balance.
How long does this process take? How long can a lawyer hold your settlement check? Who can put a lien against the settlement check? What are your rights if the attorney is not responding after receiving the check? Here are all the answers you need.
How Long Can A Lawyer Hold A Settlement Check?
There is no definitive time period for this process. Depending on the settlement and the details of your case, it may take a few weeks or even months before your attorney gets the check. Most of the settlements take six weeks, but others may even take months to resolve. Once your attorney gets the check, they will then pay it to the trust account of the law firm or escrow. This clearance process may take 5-7 days.
Another good thing about personal injury cases is that only 4% of such cases actually reach trial. Most of the time, both plaintiff and defendant negotiate to reach an agreement outside the court through their legal representatives. The settlement is a legal contract or agreement between both parties, and once it is reached, the case is dismissed from the civil court. Settlements help both sides avoid expenses that they may have to incur if the case goes to trial. These expenses are also connected to “how long can a lawyer hold your money after the settlement.” The following are some common reasons behind delayed settlement payments.
See Also: My Attorney Gave My Case to Another Lawyer
5 Reasons Behind Delayed Settlement Check
As mentioned above, the settlement process may take weeks or months, and here are some reasons why.
Release Forms
It is mandatory for you to sign the release form before getting your settlement check. A release form is a document that states that you agree to withdraw this specific personal injury case from the civil court and will not take further legal action against the defending party.
Many defendants or insurance companies do not issue settlement checks unless the plaintiff signs this document. However, it is important to know that this agreement won’t affect other legal pursuits (if any) the plaintiff has against the defendants.
The attorney reads the terms mentioned in the agreement to the plaintiff, and the plaintiff can disagree and request to change the terms of the agreement. In this case, the agreement will be redrafted, and it will take more time.
Processing Delays
Even if you sign the agreement, it may still take a few weeks before the defendant or the insurance company issue the settlement check. That’s because every state has different laws related to issuing settlement check issuance time periods.
For example, in many states, the law gives the defendant a 30-days time (after signing the release form) to issue to settlement check. Unfortunately, many defendants use this time to delay the proceedings intentionally.
Check Clearance
Once you sign the release form and the defendant issues the check, it will reach your lawyer. The lawyer will then pay the check in the law firm’s trust or escrow. The clearance process will take 5-7 days.
After the check clearance, your lawyer has the right to recover or deduct their legal service charges or fees. Apart from that, they have the right to pay for the expenses incurred during the trials or any lien against the settlement. Once every expense and lien is accounted for, your lawyer will send a check to you by wire transfer or mail.
Liens and Bills
You or your lawyer will have to settle any medical liens or outstanding bills from the settlement check. It is highly possible that you may have outstanding medical bills or liens. Settling them doesn’t take much time unless government-funded medical organizations like Medicare or Medicaid have liens or outstanding bills. In this case, it may take months to resolve them. Other notable expenses may include expert witness testimony, private investigations, etc.
Structured Payments
Although it doesn’t happen regularly, the defendant might pay you through structured or periodic payments. Yes, the defendant may plead or request the court to pay you in installments over a specific period. These instances occur when the defendant is a minor or suffers from a catastrophic injury and has ongoing medical care.
In the case of structured payments, the defendant or the insurance firm will set up an annuity that will pay the plaintiff on a fixed schedule. However, at this stage, it is important for the victim/plaintiff to ask their lawyer about the payout and the complexities involved. If you agree to structured payouts without your lawyer properly reviewing them, it may create risks, unexpected delays, or other financial complications.
What Should You Do If Your Attorney Is Not Responding To Your Messages?
Communication is very important in legal pursuits, and any reputable firm will ensure smooth communication with its clients. Yes, it is possible that you may not hear from your lawyer for an extended period of time, and it is nothing to worry about. That’s mainly because your attorney is waiting for the notifications or other paperwork from the parties involved and will share the updates with you afterward.
However, if your attorney is not responding to your messages or requests for a meeting, then this is a red flag. In such circumstances, you have the right to look for a new attorney to take your case. The law allows you to choose a lawyer that you feel will defend your interests in the best possible way.
Final Words
There is no definite answer to the question, “how long can a lawyer hold a settlement check” as the process may take weeks or even months, depending on the nature of your case. Regular communication and patience are recommended in personal injury case settlements.
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