Did a Lawyer Lose Your Money

"Can a Lawyer Lose Your Money?" Did a lawyer mishandle your money? In Colorado, lawyers are required to maintain a trust account, registered with the State Bar, to safeguard client funds. They can only withdraw fees once they've been earned, and there are strict rules to ensure proper handling. If you're facing issues or have questions about your lawyer's management of funds, ask your lawyer directly or review Colorado's trust account regulations. Still concerned? Contact the Colorado State Bar for guidance.

Did a Lawyer Lose Your Money?

Lawyers in Colorado are required to maintain what's called a trust account. To keep it simple, this means that any money entrusted to a lawyer is kept in a separate account at a bank, registered with the State of Colorado. The State Bar of Colorado is aware of the account, its account number, and how funds are handled.

It is the lawyer's obligation to properly manage and maintain this account. Excuses like, "I don’t know how to balance my checkbook," are not acceptable. In fact, lawyers are offered training, such as trust account schools and classes, to ensure they understand and comply with the rules.

So, no—a lawyer cannot simply "lose" your money or withdraw funds from a trust account before they are entitled to do so. For example, if a lawyer plans to withdraw fees they’ve earned by the hour, they cannot take that money out until those fees have actually been earned.

If you’re experiencing any issues with a lawyer that involve your money, it’s essential to:

  1. Question the lawyer directly about the matter.
  2. Review the rules of trust accounts for lawyers in Colorado.

If the problem persists or remains unresolved, you can contact the Colorado State Bar for assistance.

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