How Long Does it Take to Receive My Personal Injury Settlement?

If you or a loved one have been injured due to someone else’s negligence, you know how overwhelming an accident’s aftermath can be. Managing medical appointments, financial losses, and daily tasks can be exhausting. Maintaining financial stability for your family may seem impossible, and you are wondering when a settlement is reached, how long it will take to get paid? Compared to the time it takes to settle a claim, the wait for payment is usually short. Once your claim settles, you can receive the money within a few weeks.

At Munley Law, we understand the financial burdens you are facing. Our personal injury lawyers will work hard to make sure you receive your settlement check in a timely fashion. Contact our personal injury law firm today to schedule a free consultation.

Steps Involved in Receiving a Personal Injury Settlement

A formal settlement agreement is created once both parties agree on a settlement. This agreement outlines the compensation amount and how the payment will be made. An experienced injury attorney will take care of all the necessary details, ensuring everything is in order so you get your settlement check without unnecessary delays.

Executing a Written Settlement Agreement 

Once the agreement is ready, your personal injury attorney will review the settlement with you and offer legal advice on whether you should accept it or ask for changes. As you review the document, confirm that the entire settlement accounts for your damages, including future ones. If there are terms that you want to change, your attorney can advise you on the best course of action.

When the settlement has been agreed upon, all parties must sign and date the agreement. The agreement will include all actions and deadlines each party must meet. If the other party breaks the agreement and fails to provide a settlement, your case must be brought to court to enforce the agreed-upon terms.

Method of Payment

Your settlement agreement will indicate the terms of payment, and which include frequency, timing, and the method of payment:

Check payment: This can be untimely due to unforeseen mail delays; checks can be lost in the mail; checks can be received on a non-bank day and, once deposited, may take several days to clear. Expedited mail and safeguarded mail services include additional fees, too.

Wire transfer: This is instantaneous and electronically transferred to a trust account that your legal counsel has established for you. Your banking account and routing number are needed to initiate this process, and each transfer is typically a fee.

Placing the Funds in an Attorney Trust Account

Trust accounts ensure transparency in all of your attorney’s legal efforts. The movement of your monies is recorded and tracked to be used exclusively for your legal matters. This arrangement also ensures no commingling of your and the firm’s money. Another advantage of having an attorney trust account is that wired transactions are readily available, and your money is much easier to access in case of an urgent legal matter.

Paying Liens

Liens are legal claims on settlements to cover unpaid bills for services provided. In personal injury cases, victims often have medical liens for unpaid medical treatment; if you are injured and receive medical treatment, you may be unable to afford to pay on the spot. A medical lien is offered as a delayed billing measure; it’s a healthcare provider’s legal claim against a portion of your personal injury case settlement.

Medical providers may file a lien or have you sign a lien agreement so that you are legally committed to pay them from any settlement or judgment monies that you receive from your case:

• The lien holder will alert your attorney and the court of their entitled portion of the settlement monies.
• When your case is resolved with a settlement, the lien must be paid to the medical providers from those funds before you receive the remaining amount.

Your attorney will typically handle all interactions and payments, including negotiating with lien holders to reduce the amount owed when possible.

Deducting the Lawyer’s Contingent Fee and Case Expenses

When you win a personal injury case, the settlement payment process is as follows:

• Lawyer’s Fee: Your lawyer takes a percentage of your settlement amount as their contingency fee, typically 30-40% (be sure to inquire about their fee structure during your free consultation).
• Case expenses: After the lawyer’s fee is deducted from the settlement you may have other expenses to also account for, such as uncovered medical bills and liens.  There should be no surprises, as medical bills are economic damages that should have been taken into account in the settlement. If you received any local, state, or federal benefits because of your injury, there may be a lien on your settlement. These benefits include Medicare, Medicaid, unemployment, welfare, food stamps, and housing benefits. Other debts like unpaid taxes, child support, or alimony can also cause a lien on your settlement. You must deduct these bills from the settlement monies before you pay yourself.

Paying the Remaining Settlement Funds to You

You are entitled to the remaining money after paying your legal fees and unpaid bills. For example, if you are awarded $100,000 in your personal injury case and your contingency fee is 35% ($35,000), then:

$100,000-$35,000=$65,000 is your remaining money after your legal fees have been paid.

If you still owe an $8,000 medical debt to the hospital, doctor, or insurance provider, then:

$65,000-$8,000=$57,000 is the remaining settlement owed to you.

Common Delays in Getting Your Money After a Settlement

After enduring all the work to get compensation for your injury, several common delays can occur before you receive your money. Some delays can involve:

• Revising settlement paperwork and getting final signatures.
• Resolving and renegotiating liens.
• Your attorney’s bookkeeping for your case expenses and legal fees must be accounted for.

Weekends and Public Holidays

• Banks do not process transactions on weekends or bank holidays.
• A funds transfer request initiated on Friday will likely not be entered until Monday, and a check deposited on Friday will not begin its clearing process until Monday.
• Weekends and holidays can extend clearing days for a check to clear.

Bank Delays

• The time of day for funds receipt or to initiate a funds transfer matters. Transfers and deposits that begin in the afternoon are typically deferred to the next business day for processing.
• Wire transfers are quicker to process but also require business days for processing.
• Large deposits may need to be verified to ensure funds are not fraudulent.
• Large deposits may involve extended holding periods, depending on the bank.

Insurance Company Delays

• Depending on the complexity of the claim, evidence must be reviewed.
• Medical records, evaluations, and medical bills must be reviewed and verified.
• When constructing a settlement offer, all damages must be evaluated and considered. These include physical, emotional, and lost wages.
• Negotiations can go on for months if a settlement offer is not agreeable. An experienced personal injury attorney knows how to handle negotiation efforts and when to shift accordingly.
• Insurance adjusters are not the final decision makers; senior insurance representatives must give final approval to adjust settlement offerings.
• If and when a settlement offer is met, updated drafts must reflect all changes. Signatures must be collected and delivered.
• Processing the check or wire transfer can take days to weeks, depending on the insurance company’s workload and if all parties are on board.

Special Procedures in Minors’ Claims or Death Cases

Extra legal protections and procedures are practiced in Minors’ claims or death cases to safeguard the vulnerable and to protect all parties. These procedures include:

• The court must approve minors’ claims and contracts; settlements over $10,000 require court approval to protect the insurance companies and the minor’s interests.
• During negotiations and settlement, the court may appoint a legal guardian to protect the child’s best interests.
• A structured settlement is usually implemented to protect the minor’s proceeds and allows periodic payments to be made and drafted according to the minor’s needs and financial stability.
• The court may enforce A restricted trust account to ensure that its use is prohibited and requires court approval for access; this remains in effect until the child is of legal age.

Once a settlement is agreed upon, the minor cannot seek out additional claims in the future; however, if a settlement is not reached, the minor can file a claim up until the age of 20 (the statute of limitations affords them two years from once the child turns 18).

Should I Settle My Personal Injury Case or Go to Trial?

The advantages of settling your personal injury case include a quicker and more cost-effective resolution. If you settle out of court, your litigation can wrap up within months, significantly reducing the stress of the unknown, medical bills accruing, and emotions remaining high. Settlement guarantees compensation for your injuries, unlike the uncertainty of a trial outcome. You and your injury lawyer retain control to negotiate and decline offers, whereas, at trial, you must accept the judge or jury’s decision.

Conversely, once you accept a settlement offer, it is final, and you can’t reopen your case. Going to trial could lead to higher compensation, including money for emotional distress, which settlements might not cover. An experienced injury attorney can help you decide.

Call Our Personal Injury Attorneys Today

You need a seasoned personal injury attorney to walk you through your accident case and effectively handle negotiations. Our personal injury team will assess your situation to help you decide whether settling or going to trial makes the most sense, ensuring you get the best compensation. At Munley Law Personal Injury Attorneys, we’ve got a strong record of securing significant settlements and verdicts, backed by over 60 years of experience in personal injury law. Whether you’re dealing with an injury or advocating for a loved one, our team is here to discuss all your legal options—from negotiating a settlement to pursuing a trial. Plus, we operate on a contingency fee basis, so you won’t owe us anything unless we win compensation for you. Get in touch today for a free case evaluation with one of our personal injury lawyers at Munley Law Personal Injury Attorneys.