How Long Does It Take To Get Money After A Settlement?

The Timeline for Receiving Settlement Payments

Often, the timeline for receiving a settlement payment raises much anxiety among claimants. With bills piling up and perhaps missed work, it’s natural to want quick access to your dues. But the time it takes to process settlement payouts can vary greatly. It’s primarily determined by the terms of the agreement, practices of the involved insurance company, and the efficiency of your attorney.

The procedure, while straightforward, can involve quite a few steps. You may need to sign releases and other documents. The insurer will then process the release and issue a check. After receiving the check, your lawyer will deposit the amount in an escrow account and pay off any liens you might have before you can receive the payout. Also, from the settled amount, legal fees and any other related costs will be deducted.

Generally, most personal injury settlements are concluded within six weeks. If this seems too long, pre-settlement funding is an option. But remember that each case is unique, so timelines can’t be set in stone.

Most Personal Injury Settlements Finalize In Less Than Six Weeks

Personal injury settlements routinely drag on for months, even years. By the time the insurance company eventually agrees to a settlement, you are likely to be eager to resolve the case, get your compensation, and start putting that money to good use for addressing medical bills and other pressing expenses.

Regrettably, the settlement process is more involved than the insurer popping a check in the mail.

While many variables impact this process, most personal injury settlements should settle within less than six weeks.

Step 1: Sign the Releases and Any Other Documentation

When you reach a settlement with the insurance provider, the attorneys then draft several release forms.

Your circumstances will dictate whether these release forms are straightforward, or whether they could contain terms and conditions needing close examination by your attorney.

Often, the two parties will enter back-and-forth negotiations to finalize the terms of your settlement.

When all negotiations are complete and the drafted release forms are in their final state, you need to review and sign the forms before your settlement proceeds further.

Step 2: The Insurance Carrier Processes the Release Then Cuts a Check

As soon as the insurer receives these signed release forms, they should process them expediently. At this point, this can issue your settlement check.

The check is typically made payable to you as well as your attorney, and it will be mailed to your attorney.

This is a simple enough process that should usually run without interference, but sometimes clerical error leads to delay in payment.

Step 3: Your Attorney Deposits the Check in an Escrow Account and Then Pays Your Liens

Your lawyer will deposit the insurance check into an escrow or trust account. This is not your attorney’s decision but a mandatory part of the process. As soon as the check clears, your lawyer will send on your settlement funds.

In most cases, your counsel will use a portion of your settlement money to pay any liens (unpaid debts). Payments might include:

• Unpaid medical bills
• Medicare
• Medicaid
• Health insurance
• Child support

These liens should all be resolved as soon as the settlement funds clear. Ignoring liens from government agencies, insurance carriers, or medical providers can trigger severe penalties.

Step 4: Your Lawyer Also Deduct Legal Fees and Costs Before Cutting a Check

Your attorney pays all liens and then deducts legal costs and fees for your settlement. These legal fees amount to a predetermined percentage of your settlement. This will be outlined in the original attorney-client contract.

Legal costs hinge on many variables specific to your case, including:

• Expert witness fees
• Deposition costs
• Court reporting costs
• Gathering medical evidence and medical records

Your attorney will provide an itemized statement of these legal costs on demand.

The remainder of the settlement is yours now that all fees and liens have been deducted.

What Should I Do if My Settlement Is Badly Delayed?

In most cases, the victims of personal injury cases can expect to receive settlement within six weeks of negotiations ending.

Sometimes, unexpected additional delays occur, so what can you do about this?

Reach out to your attorney and request an explanation for the delay at minimum. Ideally, your lawyer may come up with some options to expedite this settlement payment.

Although your attorney is not legally obliged, they may agree to issuing a partial settlement payment. This gives you access to at least part of your settlement without needing to consider a lawsuit cash advance. Your attorney will retain a portion of the settlement to negotiate any liens.

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