I'm sure I am not the only attorney who has faced this. Anyway, I recently received funds from a third party on behalf of the client, more than enough to satisfy the client's outstanding legal fees with a little left over for the client. I know that I must account for the monies received on behalf of the client and return to him all monies to which he is entitled. Dear Indigent, . . . You have obviously ignored the business end of your practice in favor of the nuts and bolts of getting good results for your clients.
Different states have different rules on client funds.
Send the client a letter indicating receipt of the funds and a check for that portion of the funds over and above the outstanding amount. Leave the remainder in the trust account until the time period has passed and if the client has not raised a dispute within that time frame, transfer the remaining funds to your operating or other account. You need to bill monthly to avoid this problem in the future. Age your invoices each month and contact clients who are more that 90 days in arrears to see if there is a problem. Often, a client who is not paying his bills is a disgruntled client.