Can My Lawyer Cash My Settlement Check?

Settlement checks can feel like a huge relief after a long case. You fought hard, or maybe just waited forever, and now the money is finally here. 

But then comes a weird moment: the check doesn’t show up in your mailbox. Instead, your lawyer has it. And you’re thinking… can my lawyer actually cash that check?

Totally fair question. And you’re not the only one wondering.

In this post, we’ll explain if and when your lawyer can cash your settlement check.

How Settlement Checks Work

When your case settles, the other side sends a check to your lawyer. 

This check usually isn’t just made out to you. It’ll probably have both your name and the law firm’s name on it. That’s standard.

Why both names? Because your lawyer helped get that money and probably worked on a contingency fee basis. That means they only get paid once you win. So, the check goes to them first so they can take their cut and send you the rest.

Also Read: Average Foreign Object In Food Settlements

And no, they’re not supposed to run off with it. They have to put it into a trust account first which is basically a separate bank account that holds your funds safely until everything gets sorted.

Can My Lawyer Cash My Settlement Check?

The short answer is yes, but only under certain rules.

Your lawyer is allowed to deposit or cash the check, but only to distribute your money properly. They can’t just take it, cash it like it’s theirs, and go shopping. 

The check usually gets deposited into that special trust account we just mentioned. From there, they’re supposed to:

• Take out any agreed-upon attorney’s fees
  
• Pay off things like medical liens or court costs (if needed)
  
• Send you your final share

There’s often some paperwork involved before this happens. You might have signed something up front allowing them to handle these funds. 

Also Read: How Much Of A 50K Settlement Will I Get?

If they’re endorsing the check and your name is on it too, they’ll need your permission, or something like a power of attorney. And that power of attorney has to be specific to your case, and not just a general “you can sign stuff for me” kind of thing.

What Happens After The Lawyer Receives The Check

Once the lawyer gets the check, there’s a process they’re supposed to follow. 

It’s not instant, and that’s normal. 

First, the check goes into the trust account. Then, they wait for it to clear which can take a few days, depending on the bank. After that, they break down the settlement. 

You’ll usually get a settlement sheet that shows what came in, what’s being taken out, and what you’re getting. This should include their fee, any medical bills they’re paying off, and other costs related to the case.

Once all that’s done, they’ll cut you a check or transfer the funds directly to your bank. 

Red Flags And Misconduct

Most lawyers handle settlements by the book. But sometimes, things go sideways. You need to watch for red flags like:

• Your lawyer won’t explain where the money is
  
• They’ve had the check for weeks (or months) with no payout
  
• You didn’t sign anything, but they already cashed it
  
• You ask for a breakdown, and they avoid giving one

If your gut tells you something feels wrong, trust it. 

Also Read: Can I Fire My Personal Injury Lawyer?

Lawyers are not allowed to keep your money or delay your payout without a solid reason. This isn’t like waiting for a pizza delivery. They have legal obligations to you.

What You Can Do If Something Feels Off

If things don’t seem right, don’t panic. But don’t ignore it either. Start with a direct, written request. Ask your lawyer for:

• A copy of the settlement check
  
• A full, itemized breakdown of what’s been paid or deducted
  
• The date your money will be released

If they dodge your questions or give you vague answers, that’s a problem. 

At that point, it may be time to report the issue. Every state has a bar association that handles attorney misconduct. They take complaints seriously – especially if money is involved.

In some cases, it’s worth talking to another attorney, just to get a second opinion. You might even be able to recover your funds if your lawyer mishandled them.

Bottom Line

Yes, your lawyer can cash your settlement check. But they should handle the payout fairly, transparently, and legally. They’re supposed to walk you through what’s being deducted, what’s left for you, and when you’ll get it.

If they’re being clear, timely, and communicative, that’s what you want.

But if they’re holding back info, delaying without reason, or giving you the runaround, speak up. It’s your money, after all.

FAQs

How Long Can A Lawyer Hold Your Settlement Check?

A lawyer can usually hold your settlement check for no more than a few weeks. 

They’re allowed to wait until the check clears and all deductions (like fees or liens) are sorted out. But if it’s been more than 30 days with no clear reason or communication, that’s a red flag, and you should ask for an update.

What Causes Settlement Check Delays?

Settlement check delays usually happen because of:

• Bank clearance time (usually 5–10 days)
  
• Outstanding liens or medical bills that need to be paid
  
• Waiting on final paperwork or signatures
  
• Delays from the insurance company sending the check
  
• Lawyer’s internal processing time

Some delays are normal, but if no one’s explaining what’s going on, it’s worth speaking up.