How Long Can a Lawyer Hold Your Settlement Check?

If you’re nearing the resolution of a lawsuit, thoughts of your settlement check likely loom large.

After months or years of proceedings, you’re probably eager to access those funds for medical bills and living expenses. However, there are several necessary steps that can delay the arrival of your check. Here’s what you need to know about how long a lawyer can hold your settlement check and the reasons for any delays.

Reasons for Delay in Receiving Your Settlement Check

Issues with the Release Form
After a settlement is awarded, you’ll need to sign a release form, confirming you won’t pursue further legal action against the defendant. Disagreements over the terms can lead to delays, especially if multiple parties are involved, requiring various forms to be signed.

Processing Time
Each state has specific regulations on how long it can take for the defendant or insurance company to process your settlement payment. Often, insurance companies will use the maximum time allowed by law to delay payment, so don’t expect the funds to arrive quickly.

Clearing the Check
Typically, your check is sent to your attorney, who will deposit it into a trust or escrow account until it clears. This process can take a week or longer, delaying your access to the funds.

Paying Outstanding Bills
Once the check clears, your attorney will deduct their fees and any outstanding liens or medical bills from the settlement. This process can take additional time, especially for government liens, which may take months to resolve.

Negotiating Payment Amounts
Your attorney might need to negotiate amounts with creditors, especially for costs related to your lawsuit, such as expert testimony and investigations.

Can You Expedite Your Settlement Payment?

While lawsuits can be lengthy, there are steps you can take to potentially speed up the process. For instance, prepare your release form in advance, and discuss a list of creditors that need to be paid from your settlement funds with your attorney. This proactive approach can help streamline the payment process once the funds become available.

What About Structured Settlements?

In cases of significant injury, you may receive a structured settlement, meaning you will get regular payments over time instead of a lump sum. This often occurs when ongoing medical treatment is necessary.

Need Cash Now?

If you need cash sooner, you have a couple of options before your settlement check arrives:

Advance from Your Attorney
Your attorney may be willing to provide a cash advance based on your settlement, particularly if you’ve built a strong client-attorney relationship. However, they are not obligated to do so.

Litigation Funding
Consider applying for litigation funding, a cash advance based on your lawsuit’s expected settlement. This funding is different from a traditional loan and does not require good credit or monthly repayments. Your attorney will negotiate with the funder, and repayment is typically deducted from your settlement.

Understanding Post-Settlement Lawsuit Loans

Post-settlement loans differ from traditional loans in that they do not require good credit or employment history for approval. Instead, the settlement amount is the key factor. You won't need to make monthly payments; the lender will wait until the lawsuit concludes and your settlement is paid.

Take Action Now

If you find yourself waiting for a settlement check and need cash sooner, consider reaching out for a pre-settlement cash advance. Call us at 888-474-8473 or Apply Now to see how we can help you bridge the financial gap. PrimeCare Network provides pre-settlement funding, also known as consumer litigation funding, to its customers through different products depending on their state of residence or cause of action. Many consumers will be provided pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other consumers, such as those in SC and CO, will be offered funding in the form of a pre-settlement loan, sometimes referred to as a lawsuit loan. These transactions have important differences; therefore, consumers should carefully review and be aware of the type of transaction that is offered to them by any funding company.