After enduring the pain of an accident, and the stress of a claim or lawsuit, receiving a settlement check feels like the final step towards moving forward with your life. However, the process from accepting a settlement offer to having the check in hand can be uncertain and take time.
Our team at Nelson Personal Injury, LLC aims to demystify this process. We understand the anxiety and impatience that can arise while waiting for the compensation you rightfully deserve. Our personal injury lawyers in Minnesota are here to provide insight into what may affect your settlement timeline.
The Settlement Process Overview
The settlement process begins once both parties agree on an amount to be paid by the insurance company to fully and finally resolve a claim.
Though this signals the end of negotiations, several procedural steps must occur before you receive your settlement check. The duration of these steps can vary significantly based on the complexity of your case, the efficiency of involved parties, and legal requirements.
Step-by-Step Breakdown
Here, you can find a step-by-step breakdown of the settlement process. Understanding how it works can help you better prepare for the timeline that may occur after a settlement has been reached.
1. Settlement Agreement and Release Forms
Once a settlement is reached, the defendant’s insurance company typically requires the claimant to sign a settlement agreement and release. This document is a legal acknowledgment of the settlement reached and the amount of compensation to be paid in exchange for relinquishing any future claims related to the accident.
Drafting and reviewing these documents can take anywhere from a few days to several weeks, depending on the case’s specifics and the responsiveness of the parties involved. Some cases may require the insurance company to draft a specific release for that case, or they may be able to use a form release.
Once the release is received by your lawyer, the lawyer will review the release to make sure that it accurately memorializes the settlement and is not problematic for any reason.
2. Signing and Returning the Release
Once the release has been approved, you will need to sign the release. Sometimes the insurance company requires that the release be witnessed or notarized. Once the release has been signed, it can be returned to the insurance company.
3. Issuance of Check by the Insurance Company
Once the signed release has been received by the insurance company, they will issue the settlement check. Once the check is received by your lawyer, the check will be deposited into their client trust account, where it will be held until time for disbursement.
4. Negotiation of Liens and Subrogation Claims
While these steps are occurring, your lawyer will work on finalizing the numbers on your case for disbursement. This includes negotiating any outstanding bills, liens, or subrogation claims. Subrogation claims are claims that are brought by another insurance company (often a health insurer) which gives them the right to get paid back from the settlement. The timing on this process will depend on the type of health insurance plan involved (private plan, ERISA plan, Medicare plan, or Medicaid plan).
5. Disbursement to You
After all appropriate subrogation claims, liens, and outstanding bills are worked out and finalized, the lawyer will be ready to provide you with a final accounting of how the settlement funds will be disbursed. This will show the total amount of fees, costs, and other deductions from the settlement. You will get a chance to review these numbers, ask questions, and address any other issues involved with disbursement. Once you have approved the disbursements, your attorney will issue you a check for your portion of the settlement proceeds.
Factors Affecting the Timeline
All in all, this process can take anywhere from a couple weeks to a couple months depending on the complexity involved. When awaiting a settlement check after a personal injury claim, understanding the factors that can influence the timeline is crucial. The duration between reaching a settlement agreement and receiving the funds can vary significantly based on several aspects:
1. Complexity of the Case
Having a complex personal injury case can play a significant role in how long it takes for you to receive your settlement check after an accident. Cases involving severe injuries, such as traumatic brain injuries, multiple parties, or disputed liability may require extensive negotiations and documentation, which can prolong the settlement process. Complex cases might also result in more detailed settlement agreements and release forms that need thorough review before finalization.
2. Settlement Agreement and Release Process
The time it takes to draft, review, and sign the settlement agreement and release forms can affect the timeline. This process involves legal scrutiny to ensure that all terms are precise and protect your rights. Delays can occur if there are disagreements over the details of these documents or if either party is slow in reviewing and signing the paperwork.
3. Insurance Company Procedures
Each insurance company has its schedule and procedures for processing settlements. Some may act swiftly to issue a settlement check once the agreement is signed, while others may take longer due to internal policies, workload, or bureaucratic hurdles. Larger settlements may require additional levels of approval within the company, further delaying the disbursement.
4. Liens and Subrogation Claims
If there are liens against the settlement or subrogation claims, such as those from medical providers, health insurers, or government agencies, resolving these can delay your settlement. Negotiating these liens down or verifying the exact amounts owed takes time. Until all liens are settled, the final amount that reaches you cannot be determined, and the distribution of the settlement check is put on hold.
5. Attorney’s Due Diligence
Your attorney will perform due diligence before disbursing the funds to you. This includes ensuring all legal and financial obligations are met, such as paying out liens and deducting legal fees. While this process is necessary for protecting your interests, it can add time before you receive your portion of the settlement.
6. Banking Processes
Standard banking processes come into play once the check is issued and sent to your attorney. There is usually a waiting period for the check to clear, especially for larger amounts. This is a routine step that adds additional days to the timeline.
7. Communication and Coordination
Efficient communication and coordination among all parties involved—your attorney, the insurance company, lienholders, and you—can significantly impact the timeline. Delays in communication or miscommunication can slow down every step of the process, from settling liens to signing the release form.
Understanding these factors can provide clarity and set realistic expectations about the timeline for receiving a settlement check. It underscores the importance of having a knowledgeable and experienced personal injury lawyer to navigate these challenges efficiently, advocate for your interests, and work to expedite the process wherever possible.
Tips for a Smoother Process
While much of the timeline is beyond your control, there are steps you can take to avoid unnecessary delays:
- Complete Paperwork without Delay: Quickly respond to requests for information or document signatures from your attorney or the insurance company.
- Stay in Contact with Your Attorney: Regular communication with your Minneapolis injury attorney ensures you are informed at every stage and can address any issues promptly.
Contact Our Minnesota Injury Attorney Today
The timeline to receive a settlement check post-accident can vary widely, influenced by multiple factors, from legal paperwork to the intricacies of lien negotiations. While the wait can be frustrating, understanding the process helps set realistic expectations. Partnering with a knowledgeable and experienced injury attorney can help you better understand what to expect at every step of the legal process.
At Nelson Personal Injury, LLC, our team of experienced personal injury lawyers are committed to making the settlement process as smooth and quick as possible. We understand the importance of receiving your settlement check promptly and work diligently to expedite the necessary steps on our end. Our goal is to secure the compensation you deserve and ensure that it reaches you without undue delay. Contact our personal injury lawyers for a free consultation to discuss your case.
