Can my attorney hold money from my settlement in case the lien holder wants money from my settlement?
4 Answers from Attorneys
My general response would be, Yes. If someone has a lien or even a potential lien on the settlement, then the attorney should hold the amount necessary to satisfy the lien but can distribute the rest. To get a real answer, an attorney would need to see documentation of the lien claim, because if there is not a valid lien, but merely a creditor, then the attorney may not be obligated to hold the money.
I agree with Mr. Feldman. Additionally, your contract most likely allows your lawyer to withhold settlement proceeds in order to pay lienholders.
He MUST hold lien claims until they are resolved or paid. There are limits on how much of your settlement can be held for this. Talk to your attorney or hire counsel for assistance. .
The attorney has an ethical obligation to hold money from a settlement that a third party has a lien on.
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