How Long Can a Lawyer Hold Your Settlement Check?

After months or even years of fighting for your personal injury claim, the moment you reach a settlement should feel like relief. 

But what happens when you’re still waiting for your money weeks after your case is settled? It’s natural to wonder: How long can a lawyer hold your settlement check?

The answer depends on several factors — including the time it takes for funds to clear, liens to be paid, and documents to be processed. 

Usually, it takes around 3–6 weeks from signing the release to receiving your money

Understanding this timeline helps you know what’s reasonable and when it may be time to ask questions.

The Settlement Check Process: Step-by-Step

Once your case settles, the process isn’t over just yet. Here’s what typically happens before you receive your funds:

1. Signing the Release Form

Before any money changes hands, you must sign a settlement release form.

This document officially states that you agree to the settlement terms and release the defendant or insurance company from further liability.

Once the release is signed, the insurance company will issue your check — but even then, there are several steps before the funds reach you.

2. Issuance of the Settlement Check

After receiving the signed release, the insurance company typically processes the payment within 1 to 3 weeks.

The check is usually made out to both you and your attorney’s law firm and is sent directly to your lawyer’s office.

3. Depositing the Check into the Trust Account

Your attorney must deposit the check into a client trust or escrow account, as required by state bar rules.

These accounts are designed to hold client funds safely until they clear the bank.

This process usually takes 5–10 business days, depending on the bank’s policies and the size of the check.

4. Clearing Liens and Legal Deductions

Before distributing your portion, your attorney will typically use the settlement funds to pay:

• Outstanding medical bills or liens (such as hospital charges, health insurance claims, or Medicare/Medicaid reimbursements)
  
• Expert witness or court fees
  
• Attorney’s contingency fees and costs (agreed upon in your contract)
  

This step can take anywhere from a few days to several weeks, depending on how quickly lienholders respond or issue payoffs.

5. Final Accounting and Payout

After deductions, your attorney should prepare a settlement disbursement statement, detailing:

• The total settlement amount
  
• Fees and expenses deducted
  
• The net amount you’ll receive
  

Once you review and approve this statement, your lawyer will issue your settlement check or direct deposit.

You should then receive your funds within a few business days.

So, How Long Can a Lawyer Hold Your Settlement Check?

Under normal circumstances, you should receive your funds within 2 to 6 weeks after signing the release form.
However, the exact timeline depends on several factors:

Stage	Typical Timeframe
Insurance company processes the check	1–3 weeks
Check deposited and cleared	5–10 business days
Liens, fees, and paperwork	1–3 weeks
Final disbursement to client	A few days

Total estimated time: around 3–6 weeks from signing the release to receiving your money.

If it’s been more than 6 weeks with little communication from your lawyer, you have every right to ask for an update.

Why Your Settlement Check May Be Delayed?

Even if your attorney is acting diligently, some delays are beyond their control. Common reasons include:

• Bank processing delays (especially for large sums)
  
• Lien negotiations that take time to resolve
  
• Errors or omissions on the release form
  
• Court approval delays (in cases involving minors or structured settlements)
  
• Insurance company backlog or missing paperwork
  

Your lawyer is legally required to handle your settlement funds promptly and transparently, but they also must ensure all obligations are met before releasing the funds to you.

What You Can Do If Your Lawyer Is Holding the Check Too Long?

If it’s been longer than expected and you’re not getting answers, here’s what you can do:

1. Request a Written Update

Ask your lawyer (in writing) for a status update and itemized explanation of any pending issues.
They should be able to show proof of the deposit, lien negotiations, or other legitimate reasons for the delay.

2. Review Your Fee Agreement

Your retainer or contingency fee agreement should outline how settlement funds are handled. This can help you understand the lawyer’s responsibilities and timeline.

3. Contact the State Bar (If Necessary)

If you believe your lawyer is withholding funds without reason, you can file a complaint with your state’s bar association.
Attorneys are strictly prohibited from misusing or delaying client funds without justification.

How Long to Get Settlement Check After Signing Release?

This is one of the most common questions clients ask — and for good reason.
After signing the release, it typically takes anywhere from 2 to 6 weeks to receive your money. The timeline depends on the insurance company’s processing speed, the clearing of funds, and the resolution of any outstanding liens or deductions.

Here’s a quick breakdown:

1. Week 1–2: Insurance company processes and mails the check.
   
2. Week 3: Check clears the attorney’s trust account.
   
3. Week 4–6: Liens and fees are finalized; funds disbursed to client.
   

If your attorney communicates regularly and provides updates during this process, that’s a sign the case is progressing normally.

When to Seek Legal Help?

If your settlement has been delayed for months with no explanation, it may be time to speak with another attorney about your options.
You are legally entitled to your settlement funds once:

• The check has cleared, and
  
• All necessary payments have been made.
  

An experienced personal injury lawyer can review your case, contact the original attorney, and ensure you receive what you’re owed.

Final Thoughts

While waiting for your settlement check can be frustrating, most delays are due to bank processing, lien resolution, or standard legal procedures — not misconduct.

That said, your lawyer has a duty to communicate clearly, handle funds properly, and disburse your money without unnecessary delay.

If you’re concerned about how long your lawyer has held your settlement check, or if you simply need guidance on what’s normal, the legal team at Mulholland Injury Law can help.

We can review your situation, explain your rights, and ensure you receive the compensation you deserve — promptly and transparently.