After a car accident, one of the biggest concerns for victims is how long it will take to receive their settlement check. It is easy to feel “we have reached a settlement so it should be over now.” However, for your personal injury lawyer, often the fight is simply turning to a different front–the fight to put more of the settlement proceeds into your pocket. During this time the lawyer must fight to reduce your medical bills so that he can maximize your compensation from the settlement.
Typical Timeline for Settlement Disbursement
Though each case is different, we’ve highlighted below the process of receiving your settlement check, which typically follows the below-mentioned steps.
Settlement Agreement and Release Forms
Once both parties agree to a settlement amount, you will need to sign a settlement agreement and release forms. These legally binding documents outline the terms of the agreement and release the other party from further liability. Until these forms are signed, the settlement process cannot move forward.
Resolving Liens and Legal Claims
Before disbursing the settlement funds, your lawyer must resolve any outstanding liens or legal claims against your settlement. This includes paying off unpaid hospital liens, paying his attorney’s fees and expenses, and negotiating and paying medical bills and any other debts or legal obligations related to your case. Failure to address these claims could result in further delays or legal complications.
Check Processing and Clearance
After all liens and claims are resolved, the insurance company or defendant will issue a settlement check. Your lawyer will deposit this check into a trust account, where it may take several days to clear, depending on the amount and the bank’s policies.
Factors Affecting the Disbursement Timeline
While the process seems straightforward, various factors can impact how long a lawyer holds your settlement check before disbursing the funds.
Complexity of the Case
- Complex cases involving multiple parties or disputes over settlement terms can prolong negotiations and delay the final agreement.
- Intricate lien resolutions or legal claims may require more time and resources to resolve satisfactorily.
Communication Between Parties
- Efficient communication between your lawyer, the insurance company, and any other involved parties can streamline the process.
- Delays in responding to requests or providing necessary documentation can significantly slow down the timeline.
Jurisdictional Variations
- Different state laws and procedural requirements can impact how long a lawyer can hold a settlement check.
- In Texas, for example, there are specific regulations governing the disbursement of settlement funds that may affect the timeline.
How to Expedite Your Settlement Check Process
While some delays may be unavoidable, there are steps you can take to help expedite the process:
- Maintain open communication with your personal injury attorney and provide any requested information or documentation promptly.
- Ensure all necessary paperwork, such as medical records and bills, is organized and readily available.
- Be proactive in addressing any outstanding liens or legal claims to avoid delays in resolving them.
- Follow up with your lawyer regularly to stay informed about the status of your settlement check.
What to Do If Your Settlement Check Is Delayed Unreasonably
If your settlement check is delayed beyond a reasonable timeframe, it’s essential to take action. Contact your lawyer and request a detailed explanation for the delay. If the explanation is unsatisfactory or the delay seems excessive, you may need to consider seeking additional legal advice from another Texas personal injury lawyer or filing a complaint with the appropriate authorities.
At Simmons & Fletcher, P.C., our experienced personal injury attorneys have over 40 years of experience serving Houston and its surrounding areas and we are committed to protecting your rights and ensuring a fair and timely settlement process. If you have concerns about the disbursement of your settlement check, don’t wait and contact us for your free consultation.
Frequently Asked Questions About Holding Settlement Checks
What are my rights if a settlement check is delayed?
You have the right to receive your settlement funds within a reasonable timeframe. If your lawyer is holding the check for an unreasonable amount of time without a valid explanation, you may have grounds for a complaint or legal action. However, you need to realize that your lawyer must resolve certain liens before distributing funds. Otherwise, the lien hold may sue the lawyer and you.
How long can a lawyer withhold my settlement check?
Lawyers are obligated to exercise due diligence to conclude the settlement and distribute the proceeds. The vague term due diligence really means that they must act reasonably under the circumstances. But some lienholders, like the federal government, are notoriously slow. Negotiating with Medicare liens and Medicaid liens can go on for 6 months or more. When a lien holder refuses to negotiate or is not responding promptly, the lawyer has no choice but to hold the proceeds in trust while he negotiates and/or files the required medicare settlement detail documents to try and save the client money.
Author
