The personal injury process can take a significant amount of time. When you factor in the investigative process, preliminary negotiations, insurance claims and medical reviews, it could take a year or more for the case to reach a successful conclusion. But once you complete the claims process, you could receive a significant reward: the settlement check.
When you filepersonal injury caseor insurance claim, you may receive compensation for the losses you have suffered as a result of your injuries. These damages can include past and future medical expenses, lost wages, property damage, pain and suffering, and possibly punitive damages to punish the injured party.
The steps to receive a settlement check
As explained to us byVanguard Attorneys, a personal injury law firm in Tampa, Florida, the personal injury settlement process does not end when settlement negotiations end. To receive your settlement check, you must complete additional release steps. These steps include signing important documents and release forms, waiting for the insurance company's processes to clear, paying liens and legal fees, and waiting for a check to clear the bond.
1. Sign important documents and release forms
When you reach a settlement with the defense attorney and the guilty party, a document called the Settlement Order is issued. You and the at-fault party must complete all paperwork required in this document within 30 or 60 days, depending on the court's orders. The most important settlement document is the release.
The guilty party's lawyer will prepare the releaseoutline the terms of your settlement. This document states that you will not seek further damages from the at-fault party for the specific injury for which you have already filed a claim, along with any other information the defense deems appropriate. The release can be very short or long depending on the circ*mstances of your case and the originator.
Your attorney will review the document to ensure that all terms and conditions are in your best interests. If your lawyer does not agree with certain conditions, he or she will approach the lawyer to reach an agreement. If the lawyers cannot agree on the terms of a release, a judge will have to step in and resolve any issues. This process may take longer to receive your check.
Once your lawyer and the attorney have reached an agreement on the release, you will receive it. Be sure to read the document carefully before signing it and ask your attorney to clarify any information you do not understand. You then sign the form that you must completepresence of a notary. Once you sign the form, you cannot change the terms; your signature indicates that you fully agree to the terms and conditions. After you sign the release, your attorney will send the document to the attorney and insurance company for the next step.
2. Insurance companies release the check
The at-fault insurance company is typically the entity responsible for paying out your settlement. This insurance company will not release or issue a check without obtaining the release form. Once you complete and sign this form and the company receives it, the check will be processed. This insurance company is required by law to issue the check as soon as it receives your release, but internal issues can delay this process.
The insurance company usually issues the check to both you and your attorney. They will not cash the check to you because your attorney will need to deduct a certain amount from the check before you can receive it. Once the insurance company has processed your check, they will send the check directly to your law firm, where the next phase of the settlement disbursem*nt process begins.
3. Check paid, promised
Then the check from the insurance company arrives at your law firm. The attorney will deposit your check into an escrow account, where it will remain while the bank clears the funds. One of the purposes of posting a check to an escrow account is to ensure that the insurance company has the funds to pay your settlement. When the check clears the escrow account, your attorney can pay out your share of the settlement money.
However, if you owe outstanding liens, your attorney will have to hold your check for an extended period of time. A lien refers to eachoutstanding debts you may have with certain entities, related to your case or any other charge against you. If you have outstanding liens, your attorney cannot release your check until he or she pays it from your settlement fund.
- You may owe a lien on unpaid bills to your doctor.
- You may need to reimburse your insurance company or health care providers for medical expenses related to the injury or illness associated with your case.
- If you owe child support to your ex-spouse, your attorney will need to deduct that amount from your settlement to pay the outstanding balance.
- If you fired another attorney prior to settlement and hired your current attorney, the fired attorney may file a lien to receive payment for his or her legal services. Unlike other types of liens, this payment can come from your attorney's share of your settlement instead of your own share.
It is very important to pay the lien before you receive your settlement money. If you do not pay a lien to the government, a healthcare provider, or an insurance company, you may face legal consequences. Fortunately, your attorney should handle this process on your behalf.
4. Manage any legal fees and costs
Before you receive your settlement check, your attorney will first deduct your attorney's fees and coststhe settlement amountafter he or she has paid your liens. Before hiring your attorney, you must have signed a payment agreement, also called a contingency fee agreement, which states that your attorney will keep an agreed-upon percentage of your settlement for legal fees.
Unforeseen costs helpreduce your own costsand making it as accessible as possible to obtain legal services. On average, attorneys withhold 33% as payment from the settlement. The agreement will differ per lawyer. Some attorneys charge a lower contingency fee if he or she can settle the case out of court. If you do not receive a settlement at the end of your claim, you will not have to pay any legal fees.
For example, if you receive a $100,000 settlement, your attorney will deduct $33,000 if you have a 33% contingency fee agreement. You will receive the remaining $67,000 in your settlement check, minus any liens and related costs.
In addition, your attorney may deduct from your settlement amount certain fees and costs that he or she may have paid during the course of your case. Your lawyer should tell you in your payment arrangement whether he or she intends to do this. These fees may include the costs of filing charges, filing motions, expert witnesses, gathering evidence, accident reconstruction, and other necessary services.
5. Receive your settlement check
Once your attorney has paid all your liens, attorney fees, and applicable court costs, the company will write you a check for the remaining amount of your settlement. Your lawyer will mail you the check and forward it to the address he or she has on file for you. Depending on the location of your business and its proximity to the area, you will likely receive your check within six weeks of sending it. You can deposit this money into any account you want and start your financial recovery process.
Can you speed up the process?
The check cashing process can take months. If the guilty party appeals your lawsuit, you could wait another two years before you can receive your compensation. However, you and your attorney can take additional steps to speed up the process.
- Your attorney can prepare a release form before the end of your case. At some point in the trial or negotiation process, your attorney will realize that a settlement is imminent. By preparing an acceptable release form before the attorney presents his original document, you and your attorney can shorten the editing process.
- Before the end of the settlement process, your attorney can provide you with the documents the attorney will need before he or she can issue the final audit. You don't have to wait to sign these documents if you prepare them in advance.
- Your attorney can invest in expedited shipping so you can receive documents faster and send documents to the defense more quickly. This prevents the defense from claiming that it waited a long time for the documents, because your attorney can track when the defense receives them.
- The lien process can also delay the receipt of your check. If you think you may have to pay for certain liens, talk to your attorney about the situation in advance. You can request a partial distribution of your funds before any outstanding liens are settled.
The settlement check may take a long time to complete, but once it is completed, you will receive the allocated funds. Following the tips above can help speed up the process, as can enlisting the help of a personal injury attorney to help you with your case from the start. Good preparation, anticipation of certain barriers and careful analysis of agreements will help facilitate the settlement process.
