How Long Can a Lawyer Hold Your Settlement Check?

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You have been waiting patiently for your lawsuit settlement check. Unfortunately, even after your lawyer receives the check, they can hold onto the funds for quite some time. How long your lawyer can hold your settlement check depends on the specific circumstances of your lawsuit. In the meantime, you may be facing financial instability and need cash for everyday expenses and to pay your bills.  

Waiting for a settlement check can be stressful. However, with pre-settlement lawsuit funding from Mustang Funding, you can obtain compensation before your case is resolved in as quickly as a few days—without a complicated application process.  Mustang Litigation Funding provides best-in-class capital solutions for law firms, plaintiffs, litigation vendors, and other legal assets.

Why Lawyers Can Hold Settlement Checks

Once a settlement agreement is signed, insurance companies generally impose a 30-day deadline on payment. Your attorney deposits the money into an escrow account. Other obligations in the settlement, including legal fees and expenses or medical and government liens, are paid from the escrow account.

The court requires strict reporting on any funds deposited into an escrow account, which must be disbursed in accordance with the court order. This ensures transparency and compliance with legal and financial obligations related to the settlement or judgment.

Only when all other disbursements are paid and carefully accounted for will your lawyer pay you the balance of the escrow funds. If no liens are involved, the process usually takes a few weeks. When there are liens, the timeframe until disbursement varies, but the process can take months.

You can help streamline the process by ensuring that your medical bills are in order and your attorney has all the necessary documentation.

Pre-Settlement Funding

Eligibility for pre-settlement funding requires plaintiffs to have a pending lawsuit and legal representation.

Here’s how pre-settlement funding works:

Apply online. Every funding company and state has slightly different rules and application forms, but most will require your attorney’s input to help assess the value of your case. Always provide adequate contact information for the person or law firm handling your case.

Our internal team will evaluate the strength of your claim and determine an appropriate monetary figure. After consulting with your attorney, we will base our final decision on whether we believe you will win compensation and how much you are likely to receive. If you have provided complete contact information for your attorney, we could have an answer for you in as little as 24 hours.

When you receive your proposal, review the details with your attorney. Your attorney is intimately familiar with the details and value of your case, so they are best equipped to provide counsel as to whether you should accept the funds and how much to accept. Your obligation to repay is contingent upon your legal success, meaning you do not have to pay it back if you lose your case. 

Contact Mustang Funding

Mustang Funding helps level the economic playing field so you can hold out until justice is served. For information about pre-settlement funding and its benefits, learn more from our ultimate guide to pre-settlement funding. Our team of experts at Mustang Funding has a combined 100+ years of experience in the finance industry and 50+ years of combined experience in litigation finance. Based in Wayzata, Minnesota, we provide responsible and transparent pre-settlement funding services to litigants from coast to coast. Contact us today.

About Mustang Funding

Mustang Funding, founded in 2018 and based in Wayzata, MN, is a litigation finance company dedicated to empowering individuals and law firms nationwide with transparent and innovative financial solutions. With over $170 million funded, 10,000+ checks issued, and more than 3,000 cases financed, Mustang provides plaintiff pre-settlement funding, law firm financing, and commercial funding to meet diverse client needs. Their commitment to transparency, integrity, and expertise sets them apart, offering tailored financial support to plaintiffs, businesses, and legal professionals. By bridging capital gaps and fostering access to justice, Mustang Funding continues to lead the legal asset investment industry with a strategic, inclusive, and forward-thinking approach.

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