When you hire a lawyer, you trust they will work to get you the best settlement possible for your injuries and losses. The hardest part of any injury case is agreeing to the settlement amount. There will be a lot of back and forth, and finally, everyone agrees.
Many clients think that they will get their money once they agree to a settlement. The lawyer can keep some of the money, and you might have taken several loans or have liens leaving you with nothing. High Rise Financial offers pre-settlement loans, so you can rest assured you will receive your money.
- How Does the Settlement Check Process Work?
- What Types of Settlement Options Are There?
- What Role Does the Insurance Company Have?
- What Will Your Attorney Do with the Settlement Check?
- How Are Attorney’s Fees Handled?
- Will I Pay Taxes on My Injury Settlement?
- How Long Is the Settlement Check Process?
- What Is a Post-Settlement Loan?
- What Is Structured Settlement Funding?
- Is a Structured Settlement Right for You?
- Where Can I Get a Structured Settlement Loan?
How Does the Settlement Check Process Work?
You finally reached the end of your claim and have agreed to a settlement. It has been a long time, and you are finally about to get your money. Before you can get your share of the settlement, there are several steps your lawyer must take.
They will continue to help you until you cash your check. The steps for a settlement are:
- Agreeing to a settlement amount
- Deciding on the type of settlement
- Payment of the check to your lawyer
- Signing a release
- Terms of your settlement agreement
- Signing the settlement documents
- Liens on claims
- Attorney fee deductions
The settlement process can take some time, and you must be patient and ensure you know where your money is going and what is happening.
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What Types of Settlement Options Are There?
There are two options for receiving a settlement: a structured settlement or a lump sum. The main difference is when you will receive your money. A lump sum means you will get the funds in one go and do not need to work with anyone.
A structured settlement is when you receive a certain amount every so often. Structured settlements are beneficial when you have high future costs and want to ensure you have money to cover them or the money is for the child’s benefit.
Your attorney does not keep the settlement. They put it into a trust account and disperse it according to the terms of your agreement.
What Role Does the Insurance Company Have?
The insurance company is responsible for payment of your settlement within policy limits. Once you agree to a settlement and sign all relevant release forms, they will issue you a check.
The settlement check is made out to you and your attorney to protect everyone’s interest. You cannot cash it without their signature and vice versa.
What Will Your Attorney Do with the Settlement Check?
The full settlement check will go to your attorney, who will deposit the check into an escrow account for client funds. Then once the check clears, your attorney will begin distributing the funds to relevant parties, including your medical teams.
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How Are Attorney’s Fees Handled?
Personal injury lawyers across the country work on a contingency fee, and they only get paid once you get a settlement or jury award. Once everyone is paid, you get the remaining settlement check.
Once you agree to a settlement and the check clears, the attorney will take out their percentage before making any payments. The only exception is if there are liens against you, those are taken out before the attorney fees.
Will I Pay Taxes on My Injury Settlement?
Personal injury settlements are not taxable, and you don’t need to set money aside for taxes. The only exception is when you receive money for punitive damages.
Punitive damages do not come in a settlement check; you can only receive them in a jury verdict. Ask your attorney any questions you have regarding taxes and your settlement.
How Long Is the Settlement Check Process?
Once the insurance company has your release, they cannot delay your settlement further. They will typically issue a settlement check within a few weeks. Liens and other issues can complicate and extend the process.
If the payment is part of an estate, the funds go into probate, and you have another legal process on your hands.
What Is a Post-Settlement Loan?
When you agree to a settlement, but it will take a while to get your funds, you can take out a post-settlement loan. It is perfect for people who must cover expenses between settling and receiving their checks.
If you have a lawsuit settlement, it can take months to get your money, especially if there were substantial losses. High Rise Financial will take what you owe us in your loan when you get your payment.
What Is Structured Settlement Funding?
Often seen in personal injury or wrongful death cases, structured settlements are a tool for financial stability. When you have permanent injuries, the court can urge you to agree to a structured settlement where you periodically receive payments from your lawsuit to cover your expenses. The payments are supposed to cover future medical costs and necessities.
You must look into other options when you need cash before your next payment.
Is a Structured Settlement Right for You?
It is challenging to determine if you should opt for a lump sum payment or a structured settlement, and you can decide by considering some factors like:
- Tax duties
- Use of settlement funds
- Can you handle a large payment
- Will friends and family ask for your settlement funds
- Will you spend your settlement frivolously if you get a lump sum?
While the court can order a structured settlement for certain circumstances, you can also opt for it. Only you can decide if a structured settlement is right for you.
Where Can I Get a Structured Settlement Loan?
High Rise Financial offers various funding and financing options for individuals seeking compensation for their losses. We offer pre-settlement loans to give you more time to settle and post-settlement loans as a buffer between settlement and check disbursement. If you have a structured settlement, we also have funding options available.
A personal injury claim is traumatic, and the financial stress is inexplicable. You need money to cover your expenses, and we have options. No matter your circumstances, we are here to help when you need immediate funding; contact High Rise Financial.