Post Settlement Funding Contingency Fee Delays Why They Happen
Post Settlement Funding Why Delays In Contingency Fees Happen. Here at Balanced Bridge Funding, we often get asked this question about attorney post-settlement funding:
“Why would I need funding for my fees after my case has reached a settlement?”
Unfortunately, there are quite a few reasons why the distribution of that settlement, and the hard-earned contingency fees for the attorneys, can take some time. It could be months before such fees are collected.
We’ve discussed these delays in the past but wanted to use this post to dive a little deeper into how and why such things can happen.
Funding Delays, What Causes Them?
Post Settlement Funding Why Delays In Contingency Fees Happen. One of the more common delays seen after an agreement has been reached has to do with liens. There are various types that an attorney will often encounter:
- Medical liens, where a health insurance company or hospital can look for repayment for medical care received from a personal injury settlement in a process known as subrogation.
- Medicare liens are one of the more common culprits for delays, requiring a back-and-forth process with Medicare to satisfy.
- Worker compensation liens where the insurer may file the lien for reimbursement against an injury settlement award if there is also a workers compensation claim filed.
The Wait For Judge Approval
Scheduling hearings and court dates for judge approval will also hold up settlement distribution.
Post Settlement Funding Why Delays In Contingency Fees Happen. In class action or MDL cases, the gap between preliminary and final approval can extend 4-6 months or longer. If there are objectors to a settlement, final approval could be further delayed as those arguments are heard.
If the plaintiff is a minor or deceased, probate or surrogate court judges will need to approve the settlement.
In other state or local court systems, there may also be rules or procedures governing other cases that may need final judge approval, either for the settlement itself or for the attorney fees.
Slower Paying Defendants
Sometimes, a delay comes up waiting for the defendants to cut and send out the settlement check to satisfy the agreement. The defendant may have up to a certain number of days to pay as dictated within the settlement, or it could just take time for them to do it.
Also, when the defendant is a municipality (city, county, state, or even the federal level), the settlement often needs to go before a legislative body for approval. It takes time to schedule the meeting or hearing necessary for that municipality to approve the settlement and direct payment.
Post Settlement Funding Why Delays In Contingency Fees Happen. In some circumstances, corporations may also need to have a settlement approved by a committee or board before disbursement.
We touched on the delays within court systems being caused by the Covid-19 pandemic in a blog post last year. As in-person court appearances were halted in 2020 due to Coronavirus, growing backlogs became commonplace in court systems across the country.
Post Settlement Funding Why Delays In Contingency Fees Happen. Virtual appearances have been utilized to mitigate such delays, and many courts went back to in-person proceedings as the number of cases fell. However, delays still exist to this day with court activities, and the emerging Omicron variant has forced some systems to go virtual once again.
Covid can make it tougher to schedule hearings, meetings, or conferences to both negotiate and sign off on settlement agreements. This can add to already existing delays within the system or create new delays that weren’t present before.
Balanced Bridge’s Attorney Post-Settlement Funding Advances Can Help
Post Settlement Funding Why Delays In Contingency Fees Happen. Our post-settlement advances are specifically designed for delays like these (and others) that may come up even after an agreement has been reached on a case. Funding is available for attorneys against their contingency fees owed to them in such circumstances.
Financing is often available within a few days and Balanced Bridge funds a wide variety of cases, with advances ranging from $10,000 to $5 million and above.
Balanced Bridge strives to be the low-cost provider in the post-settlement advance space, and we offer flexibility with our rates and terms to provide the best option for our clients.
Contact us by calling 267-457-4540 or email via firstname.lastname@example.org to get more information on how an attorney post-settlement advance can help your practice. Attorneys can also fill out one of our online funding forms as well to begin the process.