Thankfully, you have completed most of the hard work after a lengthy personal injury claims process and negotiated with the insurance company to get the payment you deserve. In the meantime, you may have experienced financial difficulties when you had bills to pay with no money coming in.
However, some things still need to happen before your settlement money can reach your account, and you must handle administrative and financial steps.
You can take comfort in knowing that the money will be yours once you have signed the settlement agreement, and you only need to wait several more days or weeks before completing the process. Then, you will receive the transfer of money you have been waiting for.
The first step that you need to take toward obtaining a settlement check is to contact an experienced personal injury lawyer. Your attorney will review your case and determine your path forward as you seek financial compensation for your injuries. Without legal counsel, you can get a far smaller settlement check, leaving you in the hole in the future when you need the money.
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Negotiating and Finalizing Settlement Terms
Once you have decided on a settlement amount, your lawyer and the insurance company must agree on the actual language. Not every settlement agreement is a standardized form, and there may be unique terms that will be insisted upon by either you or your insurance company.
The insurance company may draft the settlement agreement and send it to your attorney for review, and your lawyer may suggest changes to one or more terms. Then, there may be more discussion about the actual language in the settlement agreement. Eventually, you will narrow it down and agree.
Ensuring Clarity in the Settlement Agreement
The language in the settlement agreement must be transparent because this document is a legally binding contract between you and the insurance company. If there are any ambiguities in a settlement agreement, these will need to be interpreted by a court in the future.
You should always have an attorney negotiate the exact language of the settlement agreement; do not simply sign whatever the insurance company gives you. They have attorneys who draft these agreements to protect their clients from liability to the fullest extent possible.
Understand Every Word in the Release Clause
The most crucial term in any settlement agreement is the release clause. Insurance companies want something from you in exchange for the money they are paying, and their interest is in extinguishing your legal right to any future compensation for your injuries. They will want some agreement from you that you will not return for more financial reimbursement for injuries related to this incident.
The language of the release clause is critical, and you need to be sure that you understand the terms because the release is final once it is signed. If you do not get enough money for your accident injuries, you will not get anything more in the future.
Court Approval and Administrative Processes
If you have filed a lawsuit in court, the judge may need to approve the settlement under certain circumstances. For example, if the lawsuit is on behalf of the minor, the court will need to approve the settlement, and the judge may even reject it. If an attorney negotiates the settlement for you, this is less likely.
Administrative Steps Involved in Processing Settlements
The insurance company must send the check to your attorney's escrow account within a specific time after you sign the settlement agreement. Usually, the deadline to send the check is roughly 30 days, but insurance companies may need to go through their approval processes to have the transfer authorized. Either way, they cannot stand in the way and add unnecessary delays.
Disbursement of Settlement Funds
These days, insurance companies will most likely send your settlement money to your lawyer through an electronic funds transfer. They rarely send you a check in the mail, but this is a possibility.
Once the insurance company transfers the money, it should be in your lawyer's account by the next business day at the latest. The payment will need to clear, so it can be two to five days before anyone can access the funds.
Insurance companies must send you the money promptly. If they take too long to send the settlement funds, you may even act directly against them.
Timelines for Receiving the Settlement Funds
It is essential to know that getting your settlement money takes time after the insurance company transfers the funds. Your case proceeds will go into your lawyer's escrow account, and they will first distribute the funds to deserving parties. They will hold your money for as long as necessary to ensure everyone receives compensation. After they have completed these payments, it should not take more than a few weeks to receive your check.
Legal Fees and Expenses
Before you can receive your money, others may have the right to some of your settlement money and will receive compensation before you do.
When you signed a representation agreement with your lawyer, you promised to pay them a certain percentage of the proceeds of your case should you win. Generally, your lawyer's portion of the settlement is roughly one-third, depending on the terms of the settlement agreement. Your lawyer is entitled to take their portion of the settlement first.
Your case may have also involved expenses that your lawyer covered. For example, you may have needed one or more expert witnesses to testify on your behalf. These witnesses can make hundreds of dollars per hour, and your lawyer can get compensation for these costs from the proceeds of your settlement.
If you availed yourself of litigation finance, the company that advanced you the money will need payment for the portion of your case they own. It will receive a percentage of your settlement in exchange for what it already paid you.
The representation agreement should have clearly stated which fees you are responsible for covering from the settlement proceeds, and your attorney can only deduct things they discussed with you beforehand. Moreover, these fees need to be reasonable. For example, your lawyer should not charge you a dollar per page when printing out documents related to your case.
Negotiating with Medical Lienholders
Medical providers and your health insurance company may also have liens against your settlement. They have already provided you with a service or spent money on your care. If you can pocket the entire portion of your settlement related to past medical services, you will receive an unjustified windfall.
Your lawyer can negotiate with the lienholders to reduce the size of the lien, and upon certain circumstances, the court may even reduce the value. Your attorney's skill can result in cost savings because dealing with lienholders is challenging, and the more you can negotiate, the more money remains in your pocket.
Choosing a Lump-Sum Payment vs. a Structured Settlement
You can decide how to receive your settlement money. There are two primary options that you have:
- A structured settlement
- A one-time lump sum payment
When receiving a large sum, you must know how you will take it before the settlement. If you need funds in the future, avoid getting everything upfront because the last thing you want to do is run out of money. A structured settlement will disburse money to you over a set period, controlling the available amount.
You may have reasons why you want the lump sum all at once. If you take a lump-sum settlement, you will want to make sure you have a plan for the money and controls that keep you from spending too much too soon. Your settlement money represents funds you will need in the future, so you must be careful.
If your settlement is substantial, you should speak with a financial advisor and other professionals about what option may work best for you. Planning today will put you in a better position tomorrow. Your personal injury settlement can be the only chance to get money for the rest of your life, so you must take care of your finances.
How Structured Settlements May Work for You
Structured settlements can take several forms, and you have vast flexibility. Consider when you need money in the future and schedule disbursements around then.
Also, pay close attention to the terms of the structured settlement. You should receive interest because someone else has possession of your money. Closely track the interest rate and whether it mirrors what you can get from a savings account or other investments.
The settlement payment process is the last step to what has likely been a very long legal process for you. Hopefully, you have reached the desired result, obtaining enough money to pay for your injury damages. You have a much better chance of getting what you deserve when you have legal help. Your attorney knows how much your case is worth, and they will fight the insurance companies to get them to pay what they owe.
A Personal Injury Lawyer Can Fight for a Maximum Settlement
Before it’s time to receive your settlement, you must ensure you receive enough money to cover your losses. The reality is, having an experienced personal injury attorney by your side can make all the difference in ensuring you receive the maximum settlement you deserve.
Insurance companies are notorious for trying to minimize the amount they pay in personal injury claims. They have employees whose job is to protect their bottom line, often at the expense of injured individuals. This is where a personal injury lawyer can level the playing field and fight for your rights.
A skilled attorney understands personal injury law and will use their experience to build a strong case on your behalf. They will gather evidence, interview witnesses, and consult medical experts to establish the full extent of your injuries and the effect they have had on your life. With this evidence in hand, they can negotiate with the insurance company to ensure you receive fair compensation for medical expenses, lost wages, pain and suffering, and other damages.
Not only can a personal injury lawyer handle the legal aspects of your case, but they can also provide invaluable support and guidance throughout the process. They will explain your rights and options, answer your questions, and advocate for your best interests every step of the way. This level of personalized attention can help ease the stress and uncertainty that often comes with navigating a personal injury claim on your own.
Hiring a personal injury lawyer is a wise decision if you want to maximize your chances of receiving a fair settlement. They have the knowledge, skills, and resources to fight for your rights and ensure you are not taken advantage of by insurance companies. By securing legal representation, you can focus on your recovery while your attorney takes care of the legal complexities on your behalf. Don't hesitate to reach out to a personal injury lawyer who can provide you with the support and guidance you need during this challenging time.
You Do Not Have to Pay for a Lawyer From Your Pocket
Getting legal help at the very beginning of your case is essential, increasing the chances that you will be successful in the legal process. Money should not be a factor in deciding whether and when you will hire an attorney.
You only pay your attorney's legal fees if you win your case, and your lawyer will not receive anything if you do not receive a settlement or jury award. They will get part of the proceeds of your case, or they will get nothing if you do not win. Either way, you do not have to fret about coming up with a retainer to pay your lawyer.
Since you have nothing to lose by consulting a personal injury attorney, begin the process today by scheduling a free consultation. The sooner you do, the sooner you might have your settlement check in hand.
