Personal injury cases can be drawn out and take some time to work out – so when you finally get to the end of a successful claim, it is understandable that you just want to know – how am I compensated? In this blog we will discuss the settlement process and what you can expect.
As you can expect, there is no single answer which will apply to everyone, but we will address common scenarios.
Settlement Check Timeline
When the insurance company agrees to a settlement amount, it is typical to receive a check between two and four weeks after all settlement papers are filed. This indicates that the opposing party has accepted responsibility for your injuries.
Keep in mind, if your settlement was ordered in a court case, the defendant has the right to file an appeal. If they do so, you may have an additional wait of up to two years to receive your settlement, provided you are successful in the appeal as well.
In either situation, when an agreement is reached between the parties, the attorneys representing each party will inform the court of the agreed upon settlement. The judge will then issues an Order of Settlement. Both parties are required to complete necessary paperwork within 30 or 60 days, depending on the court order or county ordinances.
Settlement Process – How are You Paid?
Getting paid is the most anticipated part of a personal injury case. After the trauma of an accident, the time off work and the medical bills, it is understandable that the funds are needed. Here is what you can expect:
Signing Release: The defense attorney prepares a document called a release that outlines the agreed upon terms and conditions of the settlement. This can be a few lines, or many pages, depending on the complexity of the case. If the attorneys from each side can’t agree on the terms, a judge will necessarily to get involved with the writing of the release. however, this slows down the process and is not advantageous. After your attorney approves of the release, you will sign the form in the presence of a notary public. Remember, your signature indicates acceptance of the terms of the settlement, and will close the case. If you have any questions whatsoever, be sure to ask your personal injury attorney prior to signature.
Processing of the Check: The responsible insurance company has a legal obligation to remit a check to you after it has received the signed Release and all other necessary forms. In most cases, the check will be made payable to you and your personal injury attorney and sent to the law firm. This typically happens within three weeks.
Deposit and Disbursement: If other parties have placed a lien against you for payment of an outstanding debt, your payment may be delayed. Typically, the attorney’s office receives the settlement check and places it into a trust or escrow account. Your attorney will disburse your portion of the funds once this has occurred. If any lien has been filed against you, your attorney is required to pay them first, before you gain access to your portion of the funds. Some common liens include unpaid medical bills, reimbursement to your insurance company, Medicare, or Medicaid and payment of any outstanding child support obligations. Your attorney will also deduct the payment for their professional services before your funds are disbursed to you. these fees should not be a surprise to you, so be sure to discuss not only the expected legal fees, but fees for experts, court reporting, and deposition services that you may be responsible for. Your personal injury attorney should provide an itemized statement.
Once all liens and legal fees have been deducted, you will receive the balance of your settlement. This should not take any longer than 6-8 weeks. As stated, no case is the same. Your experience may take longer, or may be expedited.
The personal injury attorneys at Probinsky & Cole are here to speak with you about your case and any questions you may have about the settlement process. Call us today.
