How Long Does it Take to Get a Settlement Check?
After a long legal process, reaching a settlement agreement feels like your claim has finally been closed. But there are still steps that affect when you’ll actually get your settlement check. There isn’t a set timeline for when you’ll receive your check, but understanding the process can help set realistic expectations. This guide will walk you through how long settlement payments usually take, what the process is between signing the agreement and getting your funds, and factors that can influence when you get the check and how much you get.
Common Factors That Affect When You Get Your Settlement Check
Several factors can affect how quickly you receive your check or what causes delays. Depending on any issues with your claim, the process might take a few weeks to several months.
Type Of Personal Injury Case & The Defendant
The type of personal injury case you have will influence when you get your settlement check. A personal injury claim from a car accident often settles quicker than a complicated medical malpractice case against a hospital. And claims involving government entities usually face layers of bureaucracy, which can slow things down. If your case includes serious injuries, permanent disabilities, or significant property damage, gathering medical records, expert witnesses, and calculating damages can take several months. All of these factors play a big role in determining how long it takes to reach a fair settlement.
The Complexity of the Settlement Agreement
A straightforward agreement with simple terms can be drafted and signed quickly. But complex settlements may include confidentiality clauses, structured payment plans, or provisions for future medical care. Negotiating and finalizing these details takes extra time, which can delay the final payment.
Insurance Company Procedures
Every insurance company handles payments differently—some move quickly, while others can be slow. The size of your settlement also matters. Larger settlement amounts often need multiple levels of approval, potentially delaying the process even more.
Liens and Subrogation Claims
Before you can receive your money, your attorney must identify and resolve any liens against your settlement. A lien is a legal claim for debt owed to a third party. Common examples include:
- Medical Liens⎯These can be from hospitals, doctors, or therapists who provided treatment for your injuries.
- Health Insurance Subrogation⎯Your health insurer may have a right to be reimbursed for the medical bills it paid on your behalf before the case was settled.
- Government Liens⎯Agencies like Medicare, Medicaid, or the VA have a legal right to be repaid for any injury-related costs they covered. If you owe back taxes or child support, those amounts may be deducted from your settlement check.
If you owe money to any of these entities, your lawyer will need to negotiate the liens to reduce what you have to repay and this can be time-consuming.
Cooperation of Parties
The willingness of all parties to cooperate and provide necessary information can speed up or delay a settlement. Delays often occur when parties are unresponsive or dispute the facts of the case.
State Laws & Regulations
Different states have varying legal requirements, deadlines, and procedural rules that can influence how long a settlement takes. Some jurisdictions require mandatory waiting periods or pre-trial mediation, which can affect timing. For example, if your case is for medical malpractice, 17 states require medical liability cases to be heard by a screening panel before they can proceed to trial.
How the Settlement Payment Process Works
While every case is different, each settlement usually follows the same pattern. Here’s what typically happens once you’ve verbally agreed to a settlement.
Signing the Release and Settlement Agreement
Once a verbal agreement is reached, your attorney will draft a formal settlement agreement and a release form. The release is a legally binding document where you agree to drop all current and future claims against the defendant related to the incident in exchange for the settlement funds. Your attorney will review these documents to make sure the terms match what you agreed to and that your interests are fully protected. Depending on what’s in the agreement, there could be some negotiation with the other party. Once you approve the agreement, you’ll sign the documents.
Defendant Issues the Check
After the signed release is sent to the defendant or their insurance company, they’ll process the payment. The settlement agreement usually specifies a timeframe when you’ll get the check. The settlement check is sent to your attorney’s office, not directly to you.
Depositing the Funds into a Trust Account
When your attorney receives the check, they must deposit it into a special client trust account also known as an IOLTA account. The funds cannot be disbursed until the check has fully cleared the bank in case there are issues with the check bouncing.
Paying Liens & Legal Fees
Once the funds have cleared, your attorney will use the money in the trust account to pay any outstanding obligations like all negotiated medical and insurance liens, case-related expenses (e.g., court filing fees, expert witness costs), your attorney’s legal fees as outlined in your contingency fee agreement. Your lawyer will prepare a final settlement statement or disbursement sheet that itemizes all these deductions showing you exactly where money was allocated.
Receiving Settlement Check
After all outstanding bills and fees are paid, the remaining amount of the settlement will be issued to you. You may be asked to come to the office to pick up the check and sign the final paperwork, or it could be sent through the mail, in which case you’d need to sign for it at the post office.
How to Help Settlement Check Delays
While much of the timeline to get your settlement check is out of your control, you can take some proactive steps to help things move smoothly.
- Communicate Promptly with Your Attorney⎯Respond quickly to requests for information or signatures. Delaying the signing of any release forms will directly cause the process to stall.
- Keep Medical Bills Together⎯Keep a detailed record of all medical treatments and expenses related to your case. Providing this information to your attorney early on can help them identify and address potential liens sooner.
How a Personal Injury Attorney Helps Secure Your Settlement
With over $3 billion recovered for clients across all 50 states, our personal injury attorneys are ready to help you get the compensation you deserve. If you have a personal injury claim related to medical malpractice, a defective product, premise liability negligence, motor vehicle accident, wrongful death, workers’ compensation, or another type of injury, don’t wait, contact Postman Law so we can work to secure the compensation you deserve. We have offices in Chicago, Cincinnati, Denver, and Minneapolis, but also handle cases nationwide. Call us at 844-POSTMAN or fill out our online form to get a free consultation today.
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