Once you agree on a settlement number, your attorney should receive the payment from the insurance company within a few weeks. However, you might not see your portion for a couple more weeks, depending on the circumstances of your case.
Every injury case is different; therefore, it is impossible to put an exact timeframe on when you can expect to receive your compensation. You might take months to negotiate a settlement, or you and your attorney might reach a settlement agreement in just days with the insurer.
Regardless, no two claims are alike. Therefore, one case might settle and pay out in under six months while others take years.
Contact Gladstein Law Firm, PLLC
online or by calling 502-791-9000.
Most Cases Finish in Six Weeks
Once you have agreed upon a settlement amount, you can typically expect the case to finish in six weeks. The insurance company does more than just send a check over to your attorney. Instead, there are multiple steps that they must go through, then steps your attorney must complete before you receive your portion of the compensation.
Contact Gladstein Law Firm, PLLC
online or by calling 502-791-9000.
Signing Your Release Documents and Other Court-Required Documents
Before any check is created, you must first sign a release form. Insurance company attorneys will draft these forms and require that you sign them before receiving payment. The release might be simple or it may be complex, depending on the circumstances of the case. You may also have detailed terms and conditions, which you will have an attorney review before you sign.
Terms and conditions might also go through negotiations after you have agreed on a settlement amount. Your attorney may want more favorable terms for you to put into the release. Alternatively, the insurance company might want a confidentiality clause placed in the statement before they agree to the settlement.
This process of finalizing the documents alone might take a few days or a few weeks, depending on how many arguments there are over wording and protections in the release forms.
However, once your attorney and the other side agree to the terms and conditions, you will sign these forms with your attorney and submit them to the insurance company’s attorney.
The Insurance Company Cuts a Check to Your Attorney
The check is made out to you and your attorney, but it is sent to your attorney. You cannot receive the funds directly as your attorney has several duties to complete with that check before they can give you the portion of compensation that belongs to you.
Typically, insurance companies will submit a check to your lawyer the same week you sign the release forms, but other times you may experience delays. Often, clerical errors can delay these checks, which is why your attorney should check in regularly to make sure the process is moving forward.
Your Attorney Creates an Escrow Account and Deposits Funds from the Insurance Company’s Check
Once your attorney receives the funds, they place it into an escrow account or special trust. The placement is temporary but required. Your attorney must hold onto the funds as part of state rules. Once the check fully clears, then your attorney begins their fiduciary duties.
First, your attorney must take portions of the settlement funds to pay any unpaid debts from your injury, which often include hospital liens. Some debts your attorney might pay with your check include:
- Medical providers you still owe (including hospitals, physicians, specialists, etc.)
- Your health insurance company for any medical costs they covered due to injuries from your accident
- Medicare if they covered any accident-related costs
The state requires that your attorney pay these to ensure that the providers receive payment from the settlement. Therefore, your attorney is required to make sure all debts and liens are paid before they can distribute funds.
Your Attorney Removes Their Fees
When you hire an injury attorney, you sign a contingency agreement. The agreement means that you give your attorney a percentage of the settlement if they are successful. The contingency amount can vary and may be higher if your attorney has to take the case to court.
All fees and percentages are in the contract you sign with your attorney. Most contingency fees cover lawyer’s costs, but some attorneys charge extra fees on top of the percentage for:
- Expert witness and testimony costs
- Deposition or court fees
- Medical records and evidence gathering fees
Your attorney will then provide you with an itemized statement showing you all the legal costs deducted from your settlement.
Your Attorney Issues the Remaining Funds to You
After your attorney satisfies the steps above, they will then issue a check to you for the remainder. Your itemized statement will show the initial payment from the insurer, the deductions for debts and liens, any deductions from your attorney, and the rest that goes to you.
What Causes Delays with Settlements?
While most of these cases resolve within six weeks of negotiations, there are instances where your payment can be delayed. Any time you experience a delay, you should consult with your attorney. Your attorney can look into what is causing that delay, whether it is the insurance company, bank, or you are just waiting for a debt to finalize.
Work with an Experienced Personal Injury Attorney
One way to ensure you get your payment as quickly as possible is to work with an experienced personal injury lawyer.
An experienced lawyer knows how to expedite the negotiation process, they have handled numerous release forms and contract negotiations in the past, and they are ready to fight for the maximum compensation you deserve.
You want someone who can expedite the process so that you are not waiting months to receive the compensation you need for medical bills and lost wages.
If you have been seriously injured, you need a lawyer who is ready to fight for you. Contact attorney Seth Gladstein at the Gladstein Law Firm, PLLC. Schedule your free, no-obligation consultation now by calling us, or you can request more information by filling out our online contact form.
Contact Gladstein Law Firm, PLLC
online or by calling 502-791-9000.
