How Long a Lawyer Can Hold a Settlement Check

Being involved in a personal injury accident or workplace accident can be a difficult experience. You will surely be delighted after reaching a verdict in your personal injury case and receiving the maximum settlement payment, especially considering lawsuits often take months or years to settle.

Perhaps you have pending bills to cover, outstanding debts and medical expenses to pay, monthly expenses, and other financial obligations, and you’re eager to receive your insurance claim or fair compensation. But how long can a lawyer hold your legal settlement check?

Accessing your settlement money might not be as easy as you think. At High Rise Financial, we understand how financially strenuous the claims process can be. Hence, we can provide legal funding to help cover your living expenses, property damages, and so forth, while you wait for your original settlement check payout from your accident claim.

In This Article

Your Settlement Fee Is Subject to Legislation and Delays

Some states have legislation restricting the maximum waiting time for a payable settlement to be processed. Thirty days is the maximum period in most jurisdictions. Even after fulfilling these statutory requirements, you’ll likely encounter delays, extending the waiting period by weeks or months.

There is often nothing your personal injury lawyer can do to hasten the process. The waiting time varies from one case to another based on the nature of each lawsuit, and it largely depends on the defendant’s attitude toward your recovery amount.

The defendant might be reluctant to pay the amount out of their pocket, causing delays. They may face some legal consequences if this happens. Nonetheless, being realistic about the settlement processing time is recommended, as you might encounter additional formalities.

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Steps to Getting a Settlement Check

Typically, there are four steps to receiving a settlement check.

Sign Release Forms

Once your lawyer completes the negotiations and both parties have signed the settlement agreement, you must sign a release form. Once signed, it becomes a binding agreement. By doing so, you declare that you won’t take further legal action against your case’s defendant(s). Your attorney will review the terms of the legal settlement document and release, and you can suggest any modifications if necessary.

Wait for the Defendant to Pay

State laws offer the responsible party or defendant a timeline to pay the compensation. The downside is that some defendants or defense attorneys wait until the latter days of the period provided by state laws to pay the settlement fee. That can significantly extend the time it takes to receive the settlement money.

Wait for the Check to Clear

The at-fault party usually sends the lump-sum settlement check to your lawyer. Typically, your lawyer will hold your settlement check in an escrow account until it clears. The process usually takes five days, although larger settlement checks may take up to seven days.

Once the accident settlement check clears, your lawyer deducts their legal fees from the settlement amount.

Settle Lien Payments

Sometimes other parties place liens on your settlement amount, giving them the right to seize your assets to pay the debt. For instance, a doctor may provide medical care after a car accident at no cost, but they’ll place a lien on the settlement. Your lawyer will use the settlement money to clear any outstanding liens, debts, attorney fees, or bills on your behalf, including:

Medical costs

Private investigator costs

Expert witness fees

While your legal team can swiftly clear most debts and liens on your account, clearing government liens, such as Medicaid, with healthcare providers or medical providers might take longer. After they’ve settled all the financial obligations of your case, they’ll send you the check via mail or wire transfer.

Settlements that Require Structured Payments

In some cases, the defendant may pay the settlement in structured payments. A structured payment is when the liable party pays the compensation over time in small proportions. This settlement term or structure often applies to claims involving a minor or a victim who suffered a catastrophic injury that requires ongoing medical tests and treatments.

Once the court orders a structured settlement payment, the defendant or insurance company sets up an annuity account for the claimant to receive funds regularly for a fixed period. If you and the defendant agree on a structured settlement, ensure you consult your lawyer about the terms of the settlement payout. Without reviewing the terms of the agreement carefully, you expose yourself to financial risks and delays.

How to Speed Up Your Settlement-Check Delivery Time

From preparing your personal injury claim and filing it to undergoing the litigation or negotiation and settlement process, the timeline for your settlement might seem like a lifetime. At times, there may be some unexpected delays, which may required additional processing time for your lawsuit settlement check to clear. Luckily, you can take some steps to speed up the process:

Draft a Release Form

As your case draws closer to settlement, it would be best to start drafting an insurance release form in advance. This ensures the accident settlement papers are readily available once you’ve reached and signed a settlement agreement.

Prepare a Lien/Debt Settlement Plan

Work with your legal counsel to determine the medical liens and outstanding bills as the defendant processes the release form. This streamlines the lien settlement process.

Respond to Your Lawyer Quickly

You must always be ready to respond to your accident lawyer’s requests. Delaying your response only extends the settlement check process.

If you have questions about legal funding or want to obtain your settlement faster, call High Rise Financial about your case. We can help you understand the legal funding process and start your application for funding so you are not finding new ways to pay the bills after being injured in an accident.

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Structured Settlements vs. Lump Sum Payments

In certain cases, the defendant may pay the settlement in structured payment plans rather than a lump sum settlement. Structured settlements involve periodic payments over a set period, which can be beneficial for long-term financial stability. However, if you need immediate funds to cover living expenses, a lump sum payment might be more advantageous.

Maximizing Your Personal Injury Settlement

Securing a personal injury settlement can provide significant financial relief. However, ensuring you receive the full amount you deserve requires careful attention to various factors. From negotiating a fair settlement to managing legal expenses, understanding these elements can greatly influence the final outcome of your case. Here are some key strategies to help you maximize your settlement.

Secure a Fair Settlement

Obtaining a fair settlement is crucial to ensuring you receive adequate compensation for your injuries. Your personal injury law firm will work diligently to negotiate a settlement that reflects the true extent of your damages, including medical bills, lost wages, and pain and suffering.

Navigate Legal Expenses and Contingency Fees Diligently

Personal injury cases often involve significant legal expenses. Most personal injury lawyers work on a contingency fee basis, meaning they only get paid if you win your case. This fee is typically a percentage of your settlement amount, which ensures your lawyer is motivated to secure the highest possible settlement for you.

Work With a Reputable Lawsuit Funding Company

While awaiting your personal injury settlement check, you might face financial challenges. Lawsuit funding companies can provide you with a cash advance to cover your immediate expenses. Unlike traditional loans or personal loans, pre-settlement legal funding is a non-recourse loan, meaning you only repay the cash advance if you win your case. This can alleviate financial stress and allow you to focus on your case and recovery.

Why You Should Apply for Legal Funding

You might be financially constrained as you wait for your pending settlement. Typically, lawyers are not obliged to offer a settlement advance; still, you can apply for legal funding to get the funds you need to cover your monthly bills, medical costs, and other living expenses. Claimants and lawyers see the value in legal financing during the claims process.

Unlike traditional loans, which require the plaintiff to pay back the money regardless of the case outcome, pre-settlement legal funding is a non-recourse loan. The lender offers the settlement advance on a contingency basis. That means you must pay the amount only if you receive compensation.

With legal funding, your personal injury attorney can fight for your maximum settlement funds. Sometimes claimants are forced to accept a fraction of their would-be settlement simply because they are too cash-starved to wait for the settlement. A legal loan alleviates your financial worries, allowing your attorney to prepare a strong case that guarantees maximum compensation.

How Can You Spend a Lawsuit Loan?

Pre-settlement funding recipients often have concerns that their legal funding will be restricted or monitored. However, your lawsuit loan is yours to spend however you decide it needs to be.

Many people seeking funding through a pre-settlement loan will require financial assistance covering their regular household bills, such as rent or mortgage payments, utility expenses, car and vehicle payments, phone and Internet bills, purchasing groceries and other household necessities, and more.

There will be no restrictions when you are compensated through your civil claim or personal injury lawsuit. The same goes for your lawsuit loan funding.

Is a Credit Check Required for Legal Funding?

Legal funding is a cash advance option with as few risks as possible. Once approved for legal funding, you can use the funds for whatever you need. Unlike a traditional loan, you don’t need to worry about a credit check or employment history.

The legal funding company only needs to know the details of your case and whether you are actively pursuing compensation. The application process is so simple that you determine whether you qualify within a few hours.

Will You Be Responsible for Paying a Lawsuit Loan Back?

Another benefit of legal funding is that it is a non-recourse option. With a traditional loan, your assets can be used to repay the rest.

You don’t have to worry about using your assets to repay a lawsuit loan. Because legal funding is non-recourse, the only funds that can be used for repayment are your compensation.

That means that if you receive compensation from your case, some can be used to repay your legal funds. If you don’t receive compensation, you still aren’t responsible for repaying the lawsuit loan.

Partner with High Rise Financial and Access Timely Legal Funding

High Rise Financial has you covered if you have filed a personal injury lawsuit and need a portion of the settlement as you wait for your case to close. We can work with your accident attorney for updates on your case and to set you up for legal funding.

Contact us today and alleviate your financial stress during the litigation process. Fill the contact form on our website to schedule an initial consultation. Our dedicated team will be happy to discuss your legal funding options.

Call or text (877) 735-0016 or fill out our form to apply today for free.

Your Settlement Fee Is Subject to Legislation and Delays