Your lawyer’s firm will write you a check after they’ve deducted their fees and the costs associated with your case. It is a common fallacy that once a case is won in a settlement, plaintiffs receive their compensation immediately. The truth is, it may take a little time to get your money. 

Personal injury cases don’t always go to court. However, if you can’t get a fair settlement from an at-fault party’s insurance company, you have the right to fight for fair compensation in court. 

Because many recipients depend on settlement amounts to pay for medical costs, property damage, and other expenses, this would be ideal. However, a number of factors can slow the settlement check process down and deplete the amount the plaintiff receives. 

3 Things to Know After the Settlement

Before we go further, let’s clarify one common question: what is a settlement? Settlements are often confused with damages, which are won in court. Settlements are agreed to out of court but still provide one party with monetary compensation. Click here to see an infographic that explains the process.

If you’re expecting a settlement, it’s important to under the factors that can drastically impact when you receive your check and how much is left for you. 

The Settlement Check Process

The settlement check process can be a lengthy affair. After both parties reach a settlement, there are a number of documents that must be signed. One of these is the release form, which outlines the terms and conditions of the payment. The release form should be straightforward, but it is not uncommon for parties to debate over the particulars. 

After the necessary paperwork is signed, the defendant’s insurance company mails the check to your attorney. The law requires lawyers to deduct any unpaid bills first, then an attorney will take the fees that are owed to them. Finally, the remaining amount will be sent to you. 

Liens Must Be Paid

Liens are any unpaid bills that will be deducted from your settlement amount. Liens are addressed before any other payments are taken from a settlement. Liens can include:

• Medical bills
• Home accommodations
• Property damage
• Physical therapy costs
• Chiropractic expenses

Liens may also include unpaid amounts due in the past, such as child support. Likewise, if you dismissed an attorney from your service prior to receiving a settlement, the cost for the attorney (if unpaid) is also considered to be a lien. Consequently, you may receive much less than you bargained for.  

Attorney Costs

After all of the liens are deducted, it’ll be your lawyer’s turn to get paid. Most attorneys request about 25% to 33% of any winnings. Payment is agreed to prior to hiring the lawyer, and it varies depending on location and firm. 

Although lawyers and fees can be expensive, working with an attorney may mean receiving a much larger settlement or award. In fact, whether or not the litigator has an attorney is one of the largest predictors of obtaining a recovery in automobile insurance disputes. In almost all cases, a good lawyer is a priceless commodity.

How to Speed Up Your Check

If all of this seems disheartening, know that a knowledgeable lawyer can decrease your wait by making the overall process more efficient. By having documents ready and utilizing faster delivery methods, time-consuming steps in the settlement check process can be shortened.

Because clients usually face financial duress even after a settlement, minimizing your wait times and deductions can save hundreds of dollars.