Understanding Personal Injury Claims and the Settlement Process: A Guide to Getting the Compensation You Deserve
Personal injury claims allow individuals who are harmed due to someone else's negligence to pursue compensation for damages.
These damages may include medical bills, lost wages, pain and suffering, and sometimes property damage. Typically, compensation is provided through a settlement check, either by verdict or settlement.
However, it’s important to understand that the process of receiving a personal injury settlement can be complex and take longer than anticipated.
What is a Personal Injury Claim?
Personal injury claims can arise from various situations, such as car accidents, slip and fall incidents, defective products, or harmful drugs. When another party’s negligence causes harm, the injured person has the right to pursue a personal injury claim to obtain fair compensation. Claims may involve medical malpractice, negligence, wrongful death, and product liability, among others.
The goal of a personal injury claim is to secure compensatory damages for medical treatment, lost wages, and other related losses. In some cases, punitive damages may be awarded to punish the responsible party for their actions.
Once the case is resolved, the final step involves receiving compensation via a settlement check.
What is Just Compensation?
Just compensation refers to the fair amount of money that someone harmed by another party’s negligence is entitled to. This may include compensation for pain and suffering, as well as medical expenses. When assessing damages, a long-term prognosis is necessary to determine future expenses, such as ongoing medical treatments and daily living costs. The diagnosis should come from a neutral physician to ensure fairness.
Your personal injury lawyer will help guide you through this process and provide a realistic estimate of what would constitute just compensation.
What is a Personal Injury Settlement Check?
A settlement check is the payment received after a personal injury claim is settled. It may be awarded after a verdict or settlement agreement is reached. Many factors influence when and how the settlement is paid, but the process generally follows a standard timeline.
The amount of the settlement is determined after both parties review evidence, hear testimony, and estimate damages. Some cases may require litigation, while others may benefit from negotiating a settlement agreement. Experienced personal injury lawyers can assess the details of your case to determine the best course of action.
When Does the Insurance Company Pay the Settlement Funds?
Typically, the insurance provider of the at-fault party is responsible for paying the settlement. However, the insurer will only release the funds after receiving the completed release form from the injured party. Once the form is received, the insurance company will issue the check as required by law.
What Happens After You Sign a Settlement Release?
Once you sign the settlement release, the insurance provider will begin processing the settlement. They will issue a check, which will be sent to your attorney. The attorney will then deposit the check into an escrow account, deduct any legal fees and expenses, and address any claims against the settlement, such as medical liens.
After all necessary deductions are made, your lawyer will send the settlement check to you.
How Long Does It Take to Get a Settlement Check?
Personal injury cases can be lengthy and complex. The timeline for receiving your settlement check may take anywhere from a few months to several years, depending on the case. Generally, if no appeal is involved, you can expect to receive your check within a couple of months after signing the release. However, appeals can delay the payment for years.
What Happens When the Settlement Check Arrives at Your Attorney’s Office?
Upon receiving your settlement check, your attorney will deposit it into a trust account. Any outstanding medical liens or other claims will be paid first. Then, any legal fees and expenses will be deducted, especially if the attorney worked on a contingency basis, meaning they only get paid if the case is won. After these deductions, your attorney will send you your settlement check.
What is a Medical Lien in a Personal Injury Settlement?
A medical lien refers to the legal right of a third party to claim part of the settlement proceeds. If approved by the court, the lienholder will be paid before you receive your compensation.
When Does the Insurance Company Process, Release, and Cut the Check?
Once the release is signed, the insurance company must begin processing your claim. However, delays can occur due to clerical errors, missing signatures, or incomplete documents. Your attorney will help ensure everything is submitted correctly and promptly.
Settlement Check Process
After settlement terms are finalized, the process generally proceeds as follows:
- Settlement terms are drawn up and prepared for court.
- You sign the settlement release, accepting the terms.
- The insurance company issues the settlement check.
- Your attorney deposits the check into a trust account.
- Any outstanding liens and legal fees are paid.
- The remainder of the funds are sent to you.
While the typical timeline for receiving your settlement check is around six weeks, it may take longer if there are issues with the paperwork.
Is a Personal Injury Case Settlement Taxable?
In most cases, personal injury settlements or verdicts are not taxable under federal or state law. Compensatory damages meant to cover medical expenses, lost wages, and pain and suffering are generally not taxable. However, punitive damages may be taxable.
Need a Pre-Settlement Cash Advance?
If you are in need of financial assistance while waiting for your settlement, consider a pre-settlement cash advance. With this option, you can receive a portion of your settlement upfront, helping you cover immediate expenses.
Call us at 888-474-8473 or Apply Now to learn more.
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Please consult with an attorney for advice on your specific case.
