How does the Firm disburse funds to its clients?
As payments come in, they are deposited into the Firm’s Trust Account. Once the funds have cleared, they are distributed to pay off attorney’s costs and then attorney’s fees. Since the Firm has advanced all of the costs and deferred collection of its fees, same are disbursed as payments are received. Generally speaking, if an account is on a payment agreement, the first payment usually covers all, or a majority of the attorney’s fees and costs. Once attorney’s fees and costs are paid, subsequent payments received are processed with the funds being disbursed directly to the Association. Since Associations are not for profit, most Associations cannot afford to wait until the conclusion of a case to receive their funds and the timely disbursement of funds during the pendency of a case greatly helps an Association to maintain cash flow.
