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Christy Bieber, J.D.Contributor
Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has...
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Christy Bieber, J.D.Contributor
Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has...
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Christy Bieber, J.D.
Christy Bieber, J.D.Contributor
Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has...
See Full Bio
Christy Bieber, J.D.Contributor
Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has...
See Full Bio
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Adam Ramirez, J.D.editor
Adam has resided at the intersection of legal and journalism for two decades. An award-winning journalist and legal strategist, he’s covered high-profile trials in Florida.After law school, Adam and spent two years clerking for a U.S. District Co...
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Adam Ramirez, J.D.editor
Adam has resided at the intersection of legal and journalism for two decades. An award-winning journalist and legal strategist, he’s covered high-profile trials in Florida.After law school, Adam and spent two years clerking for a U.S. District Co...
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Adam Ramirez, J.D.
Adam Ramirez, J.D.editor
Adam has resided at the intersection of legal and journalism for two decades. An award-winning journalist and legal strategist, he’s covered high-profile trials in Florida.After law school, Adam and spent two years clerking for a U.S. District Co...
See Full Bio
Adam Ramirez, J.D.editor
Adam has resided at the intersection of legal and journalism for two decades. An award-winning journalist and legal strategist, he’s covered high-profile trials in Florida.After law school, Adam and spent two years clerking for a U.S. District Co...
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Table of Contents
- My Lawyer Took My Settlement: A Common Misconception After an Injury Claim Is Resolved
- Here's What Happens to a Settlement Check
- How Long Does It Take to Get Your Settlement Money
- Can Your Lawyer Take Your Settlement Check?
- Frequently Asked Questions (FAQs)
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Many personal injury claims are resolved by a settlement. The insurer representing the person or entity that hurt you agrees to pay a set amount of money and if you accept, you give up your right to sue. The money the insurer pays is called a settlement.
Usually, the insurer sends the settlement check to your lawyer or law firm and then the firm cashes the check. This can lead to confusion among personal injury plaintiffs, some of whom are dismayed because “my lawyer took my settlement.”
In reality, though, your lawyer cannot take your settlement and something else is going on. Here’s what’s really happening.
My Lawyer Took My Settlement: A Common Misconception After an Injury Claim Is Resolved
After you have agreed to a settlement and all forms are signed, the check is in fact sent to your attorney if you are the plaintiff in an injury case. This is where the worry that my lawyer took my settlement arises from.
But the attorney is not cashing the check and putting it into their personal account. Instead, the money is going into a trust account or an escrow account. The law requires the money from the settlement check be kept in this special account until certain steps are completed, including a full accounting of the funds and distribution of funds to those with claims on them.
Here's What Happens to a Settlement Check
When your attorney or law firm receives a settlement check for any amount and it is deposited into an escrow or trust account, the money is safely held in this account separate from the attorney or firm’s personal or business funds. If the check doesn’t clear from the insurer, the attorney will notify the court and defendant to resolve the issue.
Once the settlement check has been deposited, the following steps are taken:
- Your attorney repays anyone with claims on the money. For example, if you received compensation for medical care and your health insurer paid for the care, the health insurer may have a claim. If you took a lawsuit loan out, the loan provider will have a claim. These individuals and entities are paid first out of the funds.
- Your attorney collects legal fees and case expenses. Your attorney was likely paid on a contingent fee basis and is entitled to receive compensation equal to a percentage of the amount of money you recovered in the settlement. They may also be entitled to deduct expenses involved in the case, such as investigators.
- You will receive the remainder of the money. Your attorney will send you the remaining balance of the settlement check after all debts and expenses, including legal fees, have been paid.
How Long Does It Take to Get Your Settlement Money
Usually, you receive your share of the money within a few weeks from the time that the defendant sent the funds
The process could take longer if there are problems such as:
- Improperly-signed release forms
- The bank taking a long time to clear the settlement check
- A minor or an estate is a party to the settlement
- Your attorney is negotiating debt repayment to lienholders with a claim on the settlement funds if your attorney believes the claim is not justified or the amount is incorrect
Your attorney should keep in contact with you to let you know when you can expect the proceeds from your settlement to be distributed to you.
Can Your Lawyer Take Your Settlement Check?
Although your lawyer cashes your settlement check and manages the disbursem*nt of the money, your attorney cannot just take the funds from you. This money is legally yours, once debts have been satisfied and liens have been cleared.
If an attorney were to misuse the settlement funds, even temporarily, this would be a breach of their ethical duties and a violation of the law. This could have serious consequences. For example, disgraced attorney Michel Avenatti, who represented Stormy Daniels in a lawsuit against Former President Donald Trump, was sentenced to 14 years of imprisonment for stealing settlement money from a client and failing to disclose the settlement terms to the client.
Because of the strict laws against attorneys borrowing or taking settlement funds, you will almost assuredly not find yourself in a situation where you could say my lawyer took my settlement.
Your attorney can collect legal fees and expenses that you agreed to pay from your settlement funds, though. You should be informed of these fees up front when your attorney agrees to represent you and you should be provided with a complete accounting of where settlement funds went when your lawyer distributes the proceeds of your settlement to you.
If you hire a trusted attorney in your local area, you should not have to worry about the process of your attorney receiving settlement funds and arranging for their distribution. Be sure to research the best personal injury lawyers in your jurisdiction that have experience with similar cases so you can ensure you get the best possible settlement and receive the funds promptly.
Frequently Asked Questions (FAQs)
How long does it take for a check to clear from a settlement?
The amount of time it takes for a settlement check to clear can vary. Typically, the bank issuing the settlement check will clear it in several days, but it could sometimes take several weeks. The money will be deposited into a trust or escrow account by the plaintiff’s attorney. The attorney will manage the distribution of settlement funds, paying any debts owed, deducting legal fees and expenses and finally sending the remaining balance to the plaintiff. This process can take a few weeks to complete.
Do lawyers make money from settlements?
Lawyers who represent plaintiffs often charge on a contingent fee basis, which means they are paid legal fees only if they help the plaintiff successfully recover compensation through a settlement or a lawsuit. The attorney receives a percentage of the settlement or court judgment if a plaintiff receives funds from the defendant. So, when a plaintiff does settle, the lawyer collects the agreed-upon percentage of the settlement funds.
Can I tell my lawyer I want to settle?
You are ultimately in control of your case and can tell your lawyer you want to settle your claim. However, you will be able to settle only if the defendant makes a settlement offer that you are comfortable accepting. Your attorney can help you negotiate a fair settlement and will advise you on whether to accept a settlement offer you receive. You call the shots, but if you are offered a settlement your attorney believes is insufficient, your lawyer may advise you not to accept it.
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California Personal Injury Lawyers
- Los Angeles Personal Injury Lawyers
- San Francisco Personal Injury Lawyers
- San Diego Personal Injury Lawyers
- San Jose Personal Injury Lawyers
- Sacramento Personal Injury Lawyers
- Anaheim Personal Injury Lawyers
- Bakersfield Personal Injury Lawyers
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Texas Personal Injury Lawyers
- Dallas Personal Injury Lawyers
- Houston Personal Injury Lawyers
- Austin Personal Injury Lawyers
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- Fort Worth Personal Injury Lawyers
- El Paso Personal Injury Lawyers
- Arlington Personal Injury Lawyers
- Corpus Christi Personal Injury Lawyers
Other States' Personal Injury Lawyers
- NYC Personal Injury Lawyers
- Chicago Personal Injury Lawyers
- Atlanta Personal Injury Lawyers
- Philadelphia Personal Injury Lawyers
- Las Vegas Personal Injury Lawyers
- Phoenix Personal Injury Lawyers
- Seattle Personal Injury Lawyers
- Boston Personal Injury Lawyers
- Indianapolis Personal Injury Lawyers
- Baltimore Personal Injury Lawyers
Lawsuits & Settlements
- How To Sue Someone
- Personal Injury Lawsuit
- Wrongful Death Lawsuit
- Slip and Fall Lawsuit
- Personal Injury Settlement Amounts
- Injury Compensation
- How To Start A Class Action Lawsuit
- Suing for Emotional Distress
- Punitive Damages
- Florida Statute of Limitations
- California Statute of Limitations
- What Is A Structured Settlement?
- Dog Bite Lawsuit Guide
- Slander Lawsuit Guide
- What Is A Catastrophic Injury?
Liability & Negligence
- What Is Negligence?
- Contributory Negligence
- Reasonable Person Standard
- Strict Liability
- Vicarious Liability
- Breach of Duty
- What Is Comparative Negligence?
- Assumption Of Risk In Personal Injury Claims
- What Are Intentional Torts?
- What Is Recklessness?
- What Is Property Damage?
- What Is Tort Reform?
- What Is Premises Liability?
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Christy Bieber, J.D.
Contributor
Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has appeared on Forbes, CNN Underscored Money, Investopedia, Credit Karma, The Balance, USA Today, and Yahoo Finance, among others.
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