Yes — Law App includes safeguards to prevent trust account overdraws, as required under the Legal Profession Regulations. However, it also allows for controlled recording of overdraws only when they have already occurred outside the system.
“Overdrawing a trust account is a serious regulatory breach. Law App is designed to prevent this by default, while also enabling firms to accurately reflect external transactions when necessary.”
🔒 How Law App Prevents Overdraws
- Cleared Balance Enforcement
Payments cannot be processed unless the file’s cleared trust balance is sufficient. - Pending Deposits
Deposits via cheque or EFT must clear before the funds become usable. - Internal File Transfers
These are also restricted by the same cleared balance rules.
🛑 Can a Trust Overdraw Still Be Logged?
In rare situations — such as when a trust payment is made outside of Law App (e.g. by direct bank transfer or a manually signed cheque) — you must still reflect the transaction for audit compliance.
Law App does not permit initiating an overdraw, but it does allow you to log one if it has already occurred.
🔐 How the Override Works
If a user attempts to log an overdraw, they’ll be prompted to:
- Enter their Law App username and secret password
- Acknowledge that the overdraw already occurred in the bank
This feature preserves audit integrity while enabling accurate ledger records.
Tip: Law App will always show a warning message when a trust balance is insufficient. Users should never bypass this unless the overdraw has already happened and must be recorded.
