Suffering an injury due to an accident can be life-changing. On top of dealing with your recovery, you’re likely facing mounting medical bills, missed work, and countless other worries. For many, the prospect of receiving a settlement can bring a sense of relief. But as you wait for your settlement check, questions may arise about the personal injury claims process, your potential settlement check timeline, and why your car accident attorney may be holding your settlement check.
Understanding how the settlement check process works can ease some of the uncertainty you might be feeling.
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Types of Cases That Lead to Settlement Checks
An injury caused by a car accident, slip and fall, product liability, medical malpractice, or any other incident can have a long-lasting impact on your life. If someone else’s negligence caused your injury, you may be entitled to compensation for losses like medical expenses, lost wages, and pain and suffering.
What can you do, and where can you turn for help? This is when you need a trusted personal injury law firm to guide you through the legal processes.
When you file a personal injury lawsuit, you request compensation to help you recover from the losses related to your injury. Financial compensation is only one way to help you recover and resume your life. The primary purpose of a personal injury claim is to return an injured party to their position before the injury, at least financially.
What Is a Legal Settlement?
According to the Bureau of Justice, only 4 percent of personal injury cases go to trial. The majority settle out of court by mutual agreement between the parties. This resolution is called a settlement.
A settlement is an agreement that ends a dispute and results in the voluntary dismissal of all related litigation. It may happen during the early stages of litigation and, in some cases, even before the injured person files a lawsuit. Settlements usually occur when the defendant and the plaintiff agree to the personal injury claims rather than going to trial.
However, a personal injury case can be settled even after filing a lawsuit until a jury or judge renders a verdict. After the parties see how a case was presented in court, they may choose to avoid the risk of leaving the outcome in the jury's hands and resolve the case on the courthouse steps.
What Factors Go into a Settlement Amount?
As part of the settlement, the defendant must pay the plaintiff compensation for the losses associated with the plaintiff's injuries. However, the parties may have very different perspectives on the case. They may disagree about issues of fault or the amount of payment warranted.
The parties must decide whether to accept a settlement offer or continue to litigate the case, potentially ending in a trial. Insurance companies often offer a low initial amount, hoping for a quick settlement. As an injured person, you should not agree to a settlement or sign anything the insurance company provides without having an experienced personal injury lawyer in your corner.
The Pros and Cons of Settlement
There are potential advantages and disadvantages to settling the case. By settling, both parties know the terms of the agreement and avoid the unpredictability of a trial. A settlement allows both parties to resolve the matter more quickly. Of course, a settlement is not final until the plaintiff or the plaintiff's attorney receives the settlement check and it clears.
The defendant may lack the money to pay a judgment. The settlement terms typically remain confidential, as opposed to public trial results. Attorney's fees and expenses will take a portion of the settlement amount, but these legal costs are deducted from a court verdict. Some plaintiffs prefer to go to trial because they may receive a higher award of damages from a jury than in a settlement, or they want their day in court.
If you choose to settle your case, you do not immediately walk out with a check. Your check is part of a legally binding agreement. Each case is different, but specific key steps are involved in receiving a settlement check.
The Process of Receiving a Settlement
The settlement process can involve many steps and, unfortunately, it often takes time. From initial investigations to settlement negotiations or even trial preparation, it’s not uncommon for the process to be lengthy. While it can feel frustrating to wait, understanding the timeline and steps involved can help you feel more prepared.
Here are some of the key steps in the settlement process:
1. Signing the Settlement Documents
The settlement agreement is one of the final but crucial steps in the resolution of your claim. After both parties agree on the terms, the lawyers will report the settlement to the court. Next, the court issues an Order of Settlement. This order generally requires that both parties complete all necessary paperwork within either 30 or 60 days.
The most important settlement document is the release. This document essentially formalizes the agreement and acts as a contractual promise that you will not pursue further legal action related to your injuries once the settlement is finalized.
The release form is more than just a simple signature. It is a legal document that binds you to specific terms, and its contents should be reviewed carefully. It typically includes three main points:
- Releasing liability: The defendant and their insurance provider are cleared of any further responsibilities relating to your injuries. This means, should new issues or injuries arise later, you cannot seek additional compensation.
- No admission of guilt: Even though the settlement may involve financial payment, the defendant does not admit fault.
- Confidentiality agreements: Sometimes, the release form may require you to keep settlement terms confidential.
Your attorney’s role at this moment is critical. They will analyze the release form to ensure it reflects the agreed settlement and safeguards your rights. If discrepancies arise, your attorney may negotiate adjustments.
Additionally, the release form may need to be signed in the presence of a notary public to confirm its authenticity. This added step ensures there is no question about the validity of your signature or your agreement. After signing, the form is sent to the defendant’s insurance provider. Once they receive it, the wheels for processing your settlement check are in motion.
It’s important to fully understand the release form before signing, as its terms are final. Take your time, ask questions, and ensure you feel comfortable with what is being agreed upon. Your attorney will be your guide to ensure this process goes smoothly and that no crucial details are overlooked.
2. Handling Potential Delays
Waiting for your settlement check can feel overwhelming, especially when you’ve already endured so much. Unfortunately, delays in the process can happen. While frustrating, these delays are often due to necessary legal or administrative steps. Here are the most common reasons why settlement checks can take longer than expected:
- Disputes Over the Release Form
Both parties must agree on the language within the release form before moving forward. If there are disagreements over its terms, additional time may be needed for your attorney to negotiate or revise the document. - Internal Insurance Company Delays
Insurance companies have strict protocols when processing settlement payments. Delays can result from administrative errors, incomplete forms, or unavailable staff, such as a claims adjuster being out of the office due to vacation or illness. - Interstate Processing Issues
If your case involves parties or legal processing across state lines, the coordination between different jurisdictions can create temporary roadblocks. Each state may have unique requirements that need to be addressed. - Clerical Mistakes
Simple errors like missing signatures, incorrect document submissions, or misplaced paperwork can also result in delays. Your attorney will work to identify and correct these issues as quickly as possible.
Although these delays can feel exasperating, they are usually manageable with the right legal guidance. Your attorney will remain focused on pushing the process forward while ensuring all legal requirements are met. If you’re unsure why your settlement is delayed or have concerns about the timeline, don’t hesitate to ask questions and stay informed. The finish line is in sight, and your patience will pay off once you receive the funds you’re entitled to.
3. The Check Arrives at Your Attorney’s Office
Once the defendant’s insurance company issues the settlement check, it doesn’t come directly to you right away. Instead, the check is sent to your attorney, who plays a vital role in managing the funds and ensuring everything is properly accounted for. While this part of the process might feel like another delay, it is essential to ensure your settlement is handled in compliance with legal requirements.
Upon receiving the check, your attorney will deposit it into a designated escrow or trust account. This step might seem routine, but it’s critical. The escrow account temporarily holds the funds while the bank confirms the settlement check clears. This ensures the money is available and avoids issues like bounced checks that could further complicate your case. Banks generally take several days for this process, so it may add additional waiting time.
Before the funds can be disbursed to you, your attorney must first address any outstanding liens or debts tied to your case. For example:
- Medical liens: If you received treatment for your injuries but deferred payments under the assumption that costs would be covered by your settlement, these bills will be paid from the funds. Medical providers or insurance companies that covered initial costs often have legal claims to this portion of your settlement.
- Child support liens: If you owe unpaid child support, this will also be deducted before you receive your share.
- Attorney’s fees and costs: Your legal representation was likely based on a contingency fee arrangement, meaning your lawyer’s payment is a percentage of your settlement. Any additional legal fees or case-related expenses are also addressed at this point.
Your attorney will provide you with a full breakdown of these deductions. This level of transparency helps you understand exactly where your settlement money is going and ensures everything is handled fairly.
After settling liens and deducting attorney fees, the remaining funds are finally yours. At this point, your attorney will issue a check for the net amount. It’s helpful to plan in advance how you’ll use these funds—whether it’s for ongoing medical expenses, daily living costs, or starting fresh after this chapter of your life.
Questions You May Have About the Process
You’re not alone if you feel unsure about how all this works. Many people wonder why the process can take so long or if there are ways to speed it up. Here are some common concerns:
- Why isn’t my settlement check ready yet?
Delays can stem from disputes about the release form, lien negotiations, or procedural issues at the insurance company. Your lawyer can help address these obstacles and keep the process moving as quickly as possible. - Can I receive my settlement early?
After signing the release, receiving the final check usually takes about six weeks. However, if specific factors cause further delays, your attorney can discuss options for expediting the process where possible. - How are settlement checks mailed?
Once the insurance company issues your settlement check, they typically send it to your attorney. From there, the escrow process ensures the funds clear before disbursement. - Will I receive the full amount?
Keep in mind that there are deductions from the settlement amount for any outstanding liens, attorney’s fees, and case-related costs. Your attorney should provide a detailed breakdown of how the funds are distributed.
Legal Support Throughout the Process of Receiving a Settlement Check
Understanding the settlement check process can make it less intimidating and give you some peace of mind. While it may take time, you’re one step closer to regaining stability and focusing on the future after your injury.
If you’re feeling uncertain or have unresolved questions about your settlement, you don’t need to face this alone. At The Levin Firm Personal Injury Lawyers, we’re here to guide you every step of the way. Contact us at (215) 825-5183 or through our online form for a free consultation, and let’s ensure you receive the compensation you deserve.