
Reaching a settlement in your personal injury case is a significant milestone, but the process does not end the moment you agree on an amount. There are several key steps that must take place before you receive your settlement funds. Below is a general overview of what to expect after settling your personal injury case, including how funds are processed, potential delays, and the typical timeframe for completion.
Negotiating and Signing the Settlement Release
Once a settlement has been reached, the insurance carrier will require you to sign a settlement release. This legal document finalizes the agreement and confirms that you are giving up your right to pursue any further claims related to the accident in exchange for the agreed-upon compensation.
Before signing, your attorney will carefully review the release to ensure it is fair and does not include overly broad language that could affect your rights in unexpected ways. In some cases, additional negotiations may be necessary to clarify terms or remove unfavorable provisions. This process can take anywhere from a few days to a few weeks, depending on how quickly the insurance company provides the release and whether any modifications are needed.
Negotiating and Reducing Medical Liens
Many personal injury settlements involve outstanding medical liens or unpaid medical bills. These may include:
Health insurance liens
Medical provider liens (if treatment was provided on a lien basis)
Government liens (e.g., Medicare, Medi-Cal, or workers’ compensation)
Your attorney will work to negotiate reductions on these liens to maximize your net recovery. The negotiation process can vary significantly in length, often taking several weeks or even months, depending on the responsiveness of the lienholders and the complexity of the reductions being sought.
Settlement Fund Distribution Agreement
Before disbursing funds, you and your attorney will go over a detailed breakdown of how your settlement money will be distributed. This typically includes:
Attorney’s fees and case costs
Medical liens and outstanding medical bills
Reimbursement for any advanced expenses
Your final net settlement amount
This step ensures full transparency and prevents misunderstandings about how much money you will receive after deductions. Having a clear agreement in place can help avoid disputes or misunderstandings later in the process.
Waiting for the Insurance Settlement Check
Once the release is signed and returned to the insurance carrier, they will issue the settlement check. Insurance companies generally process settlement payments within two to four weeks, but delays can occur due to:
Internal processing backlogs at the insurance company
Additional approvals required for large settlements
Errors in the release that require corrections
Delays in mailing the check
If more than four weeks pass without receiving the check, your attorney may need to follow up with the insurance adjuster to ensure timely processing.
Depositing the Settlement Check into a Client Trust Account
When the settlement check arrives, it is typically made payable to both you and your attorney. The check must be deposited into your attorney’s client trust account (also called an IOLTA account), where it will remain until the funds clear.
Banks may require a waiting period of 7 to 10 business days for the check to fully clear, especially for large settlement amounts. Your attorney cannot disburse any funds until the check has cleared, as required by state bar rules and ethical obligations.
Issuing Payments to You and All Lienholders
Once the settlement funds have cleared, your attorney will promptly distribute payments. This includes:
Paying any outstanding liens or negotiated medical bills
Deducting agreed-upon attorney’s fees and case costs
Issuing you your final settlement amount
You will typically receive your portion of the settlement via check or direct deposit, depending on your agreement with your attorney. Your attorney will also provide a final settlement statement summarizing the disbursements.
How Long Does the Entire Process Take?
From the time you settle your case to the moment you receive your final payment, the process typically takes between four to eight weeks. However, some factors can cause additional delays, including:
Extended negotiations over the settlement release terms
Slow processing by the insurance company
Delays in lien negotiations or lienholder responsiveness
Issues with the settlement check, such as incorrect payee information
If complications arise, the process can take several months, but your attorney will keep you informed and work to resolve any delays as efficiently as possible.
Final Thoughts
Settling your personal injury case is a significant event, but patience is required during the post-settlement process. By understanding the necessary steps and potential obstacles, you can set realistic expectations and feel confident that your attorney is handling everything properly.
If you have any questions about the settlement process or need assistance with your personal injury case, our team at Phillips & Associates is here to help. Contact us today for a free consultation.
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