How Long Can My Attorney Hold My Settlement In Escrow?

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Settlement money attorneys

You’ve won your case, you signed the release form, you agreed not to take further legal action against the insurance company, and your settlement check is finally ready. But just when you think the financial stress is over, a new question arises: Why is it taking so long for your attorney to release the funds from escrow?”. If this scenario sounds familiar, you’re far from alone. The timeline for releasing settlement funds from an escrow account can vary widely and is influenced by several factors, like the legal and ethical guidelines that govern this process.

So, if you’re scratching your head, wondering why that much-needed settlement check hasn’t hit your bank account yet, this guide is tailor-made for you. By the end, you’ll have a thorough understanding of what dictates how long an attorney can hold your settlement in escrow. Along the way, we’ll explore actionable steps to expedite the payout process.

Understanding Escrow: A Simple Overview

Before we roll up our sleeves, it’s really important that we clarify what an escrow account is and how it is different from a regular bank account. An escrow account serves as a neutral holding place for funds during a transaction between two parties. Managed by a third party—often your attorney—this account ensures that the distribution of money is done fairly and according to legal guidelines. This also plays a big role when multiple parties have a stake in the funds.

For example, let’s say you’ve won a personal injury case. Your settlement might need to cover medical bills, attorney fees, and your personal compensation. Unlike bank accounts, an escrow account guarantees that your funds are allocated correctly. No party receives payment until all conditions are met, which brings a level of transparency and fairness that a regular bank account simply can’t offer.

Decoding the ‘Prompt’ in Settlement Disbursements— What Really Influences the Timeline?

When you hear that your attorney is required to disburse settlement funds “promptly,” it’s easy to assume that you’ll have quick access to your money. However, the term “promptly” is a bit of a gray area, open to interpretation and influenced by many factors.

It’s important to bear in mind that the meaning of “promptly” can vary depending on the jurisdiction, the specifics of your case, and the agreement you have with your attorney. As such, check your agreement and state laws for a more exact comprehension of what “promptly” implies in your situation.

State Laws

If you’re in New York, the rules might be different than if you’re in Florida. Each state has its own set of regulations that dictate how quickly an attorney must release settlement funds. In most jurisdictions, the timeframe can range from 5 days up to 6 weeks.

Type of Case 

Personal injury cases often have medical bills that need to be sorted out, and this can take time. Conversely, employment disputes may entail fewer interactions with third parties, which could potentially expedite the release of funds.

Contractual Agreements

When you first hired your attorney, you likely signed an agreement that outlined the terms of your legal representation, including how settlement money would be disbursed. You might find some agreements specify a timeframe, while others are more vague.

So, What’s Holding Up the Settlement Check Process?

  1. Pending Medical Liens. Think about any medical treatments you’ve had to undergo due to your case. Your medical provider might have what’s called a medical lien on your settlement. Resolving these adds an extra layer of time to your wait. 
  2. Government Liens. Government liens, such as those for unpaid taxes or child support, can be particularly complex to resolve. They often involve multiple agencies and a web of regulations, which makes them time-consuming to settle.
  3. Other Outstanding Liens. Your lawsuit settlement may also be subject to other liens, such as those from creditors or even an open bankruptcy. If you’ve taken out a settlement loan, that too will need to be settled, and some additional time before you see your share.
  4. Legal Services. You’re not the only one eyeing that settlement check; your attorney has a stake in it too. Your personal injury lawyer will need to deduct his or her agreed-upon fees, which is standard. But there are also other costs like court fees, expert witness fees, and miscellaneous expenses related to your case.
  5. Dispute Resolution. Are you the only claimant, or are there others? Is there a disagreement about how the funds should be divided? Maybe you think the legal fees are too high, or another party contests the settlement payment distribution. These issues can slow down the disbursement process, sometimes requiring additional negotiations or even court interventions. 

What if my Settlement is on Hold Longer than Expected—Steps and Questions for a Smoother Process

Consider the following questions and steps as a practical tool for you to better understand what’s going on with the settlement payout process. They can help you identify the problem early so you can take action—whether that means a heart-to-heart with your attorney or taking more formal actions. If something doesn’t add up, this information is your first line of defense. 

Revisiting Your Agreement is your First Line of Defense

First and foremost, revisit the agreement you have with your attorney. It’s not just a stack of papers; it’s an important document that spells out the terms and conditions for how and when your settlement funds will be released. Make sure you understand the fine print, as it often contains clauses that specify the conditions under which funds can be held or released. Ignoring this document could lead to misunderstandings that prolong the process even further.

Question to Ask: Is the Delay Reasonable?

Compare the timeline to what’s outlined in your agreement and consider any unforeseen circumstances that might be causing the hold-up.

Open Communication is Your Best Tool for Transparency

Your attorney is your advocate, and he or she should be as eager as you are to close this chapter. Regularly check in for updates and ask for explanations on any delays. If your attorney is not forthcoming, that’s a red flag.

Question to Ask: Has Your Attorney Communicated Clearly?

Clear communication from your attorney is crucial in any legal process. If you’re left in the dark about why the settlement is delayed, it’s worth questioning why.

Seek External Advice When Doubt Creeps In

If you’re not getting the answers you need, or if something feels off, it might be time to seek external advice. Consulting another lawyer can provide you with a fresh perspective and may help you identify if there’s any foul play at hand. While legal malpractice is rare, it’s not unheard of, and when claims are filed, they are taken very seriously.

Question to Ask: Are There Legal or Ethical Violations?

If you have concerns about the legality or ethics of how your case is being handled, don’t ignore them. You have the right to question your attorney’s actions and seek external advice if needed.

Your Right to File a Complaint

If your concerns escalate to the point where you suspect malpractice, remember that you have the right to file a complaint with your state’s bar association. This is a serious step, but it’s there as a safeguard to ensure that attorneys are held to the highest ethical and legal standards.

The Emotional Toll and the Relief of Settlement Funding

Waiting for a settlement can be emotionally draining. You’ve already been through a legal battle, and now you’re left counting the days, perhaps even the hours, until you can finally close this chapter and move on. The emotional toll isn’t some side note; it’s a significant part of the experience that can affect your mental health and overall well-being.

But what if there was a way to alleviate some of this stress?

Just like a financial cushion to lean on while you wait for the settlement proceeds to be disbursed, lawsuit funding for settled cases can provide financial relief and reduce the stress of the wait. The funding process is fast and simple, with cash available within 24-48 hours after approval. All that is required is the settlement agreement and a 5-minute conversation with your attorney.

With lawsuit settlement funding, you can:

  • Ease Immediate Financial Strain. Pay off outstanding bills or medical expenses without waiting for the settlement check.
  • Take Comfort in Knowing You Have a Financial Backup. Knowing you have a financial backup can significantly reduce stress.
  • Retain Control: Unlike traditional loans, a settlement cash advance is tailored to your situation, giving you more control over your finances during this critical period. And if for any reason, the defendant appeals, and you end up losing, you won’t have to pay back the funds.

So, as you deal with the emotional rollercoaster of waiting to be compensated, remember that you have options. Settlement funding for settled injury claims provides that financial and emotional relief mechanism to help you wait out the process until your attorney can finally release the funds from escrow.


The question of “How long can my attorney hold my settlement in escrow?” is more than a simple question; it’s a pressing concern that demands immediate attention. While the law provides some guidelines, the emotional and financial toll of waiting can be too much to handle. That’s why it’s important to review your agreement, communicate openly with your attorney, and if necessary, seek external advice regarding your options. Remember, you have rights, and they should be respected.

Need funding until your settlement money is released? Consider the benefits of a settlement loan by Baker Street Funding to ease some of your financial burden during this time and take control of your situation today.


Q: According to my attorney, the settlement check will clear promptly. How long is “promptly” in legal terms?

Depending on the jurisdiction, “promptly” can range from a few days up to six weeks.

Q: Can I file a complaint against my attorney?

Yes, if you suspect any legal or ethical violations, you can file a complaint with your state’s bar association.

Q: What can delay the disbursement?

Pending liens, legal fees, subrogation claims, and dispute resolutions are common factors that can delay disbursement of the settlement check. Additionally, if there are discrepancies between the proposed agreement and the actual settlement, this can also cause delays.

At Baker Street Funding, we give you the inside scoop on pre-settlement funding by covering a variety of ... financing and legal topics to help you made the best financial decision for you and for your case. Our experts break down complex ideas in a way that's easy to understand so you can stay informed on current trends as well as tips and fact checked information by the CEO and founder, Daniel Digiaimo. Furthermore, Despite its name, consumer legal funding is not a loan. If you don't win your case, no payment needs to be made back. To avoid confusion and simplify matters on, we'll use the word "loan" throughout this article.

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