Filing a personal injury claim can be a critical step toward seeking justice and compensation for the harm you’ve suffered due to someone else’s negligence. After reaching a settlement agreement, many people are curious about how long they must wait to get paid. While the exact timeframe can vary depending on various factors, including the complexity of your case and the responsiveness of the involved parties, personal injury lawsuits typically take months to resolve. Some people have to wait over a year to see the outcome of their claim. Therefore, a person can feel relief when both sides finally agree on a settlement deal.
However, the plaintiff does not get the settlement money right away. The time between negotiations and when the check arrives varies from case to case. Let’s take a closer look at the personal injury settlement process and answer the question, “How long after a settlement do I get paid?”
The Personal Injury Claims Process
Whether you’ve been injured in a car accident, slip and fall incident, or any other situation where another party is at fault, the legal process aims to provide you with the financial support needed to recover physically, emotionally, and financially. An experienced personal injury attorney will evaluate your case and file a personal injury claim to seek compensation for your injuries and losses.
Once you’ve filed a claim, your attorney will begin negotiating with insurance companies and other responsible parties on your behalf. These negotiations are often aimed at reaching a settlement that fairly compensates you for medical expenses, lost wages, pain and suffering, and other damages you may have incurred. An experienced attorney is a valuable ally to navigate these negotiations and ensure your rights and interests are protected throughout the process.
A successful negotiation will result in an award of settlement funds. The settlement payment may be set up in different ways.
Two Common Types of Personal Injury Settlements
Lump Sum
Many people receive their awarded compensation in the form of a lump sum. A lump sum is when the opposing party sends the entire settlement in a single check. They fulfill their legal obligations, and the plaintiff has the financial resources to pay bills.
Lump sums allow plaintiffs immediate access to all their funds to meet unexpected needs. They can manage their investments whenever they like. However, a person does not get any more money after they spend the entire award.
Structured Settlement
On the other hand, a person can receive reimbursement through a structured settlement. A structured settlement allows a person to get money from the defendant in a series of payments.
Large settlements are likely to use the structured compensation method. Both parties determine how much each check should contain and how often the plaintiff receives the funds. For example, the victim might receive $500 monthly for ten years.
Some people enjoy structured settlements since they receive money over an extended time. They know they will have funds to pay future bills and support ongoing needs. They do not need to worry about spending everything so soon. However, structured settlements limit a person’s ability to manage unexpected expenses.
Looking For A Local Personal Injury Lawyer?
Choosing the right law firm to represent you in your personal injury case can make a significant difference in the outcome of your claim. At Reiner, Slaughter & Frankel, we are dedicated to providing personalized and compassionate legal representation to each of our clients. With years of experience and a track record of successful settlements and verdicts, our team of skilled attorneys is well-equipped to handle even the most complex personal injury cases.
We offer professional experienced lawyers that can achieve the results you want out of your case. Reach out to our personal injury lawyers today!
How Long After a Settlement Do You Get Your Money?
Once both parties agree on compensation, the settlement part of a claim goes through several steps. The procedure can take a while to complete. Usually, a person can expect about a month before receiving compensation from the insurance company.
Waiting for the insurer to process and issue the check takes time. Attorneys work hard to ensure everything goes by quickly and efficiently. They understand how much clients need reimbursement for bills.
Possible Delays
While the exact timeframe can vary depending on various factors, including the complexity of your case and the responsiveness of the involved parties, you can generally expect some wait time between settling your claim and receiving your compensation. The payment process often involves the finalization of paperwork, processing of payments, and other administrative tasks.
Your attorney will work diligently to expedite this process, but it’s important to be patient as these things can take time. Remember, your attorney is there to guide you through every step and ensure that you receive the compensation you deserve to help you move forward with your life.
The paycheck could take longer than a month to reach the injured party. Delays in settlement payments can also happen. For example, an error occurred with the release form. Therefore, the insurance company takes longer to process and send the money. The check could face problems during transit through the postal system as well.
Furthermore, the settlement process can take longer to complete if compensation is more than the average amount. An adjuster might spend more time reviewing the agreement if a person’s settlement is in the six-figure range. In addition, the settlement could arrive in multiple payments over time.
Steps in the Settlement Process
The Plaintiff Signs the Release Form
The initial step of the settlement process is to sign the release form. The release document means the plaintiff relieves the defendant from all liability for an incident. As a result, the injured party cannot sue the other individual or entity for more damages in the future.
Some people do not realize the full extent of their losses until later. Therefore, you must ensure the terms of the settlement agreement cover all accident-related damages. Your attorney can review the release form before you sign it. They may disagree with the terms and hold additional negotiations.
Have a lawyer with you during the first step of the settlement process. The release form contains plenty of legal jargon. An attorney helps you understand the document before you provide a signature.
The Insurance Company Sends Compensation
The insurance company will hold the money until they receive a signed release form. When the adjuster obtains the document, they process the injured party’s payment. Afterward, the insurer writes the check to you and your attorney before mailing it to the appropriate place.
The insurer has a legal obligation to pay you. Usually, the money arrives within two to three weeks. If the check fails to arrive on time, your lawyer can follow up with the adjuster.
The Lawyer Receives the Settlement Check
Unless someone does not hire a lawyer, the settlement check typically arrives at the law firm first. Your lawyer deposits the money into an escrow account and waits for it to clear. This action ensures the other party has the funds to pay the settlement.
Afterward, the attorney proceeds to pay off any liens the client has. Your health insurance might place one on your case for unpaid medical bills. Other possible liens include reimbursing Medicare, compensating Medicaid, or paying overdue child support.
The Lawyer Deducts Fees
The next step is to wait for the lawyer to deduct their fee and other legal expenses. Most personal injury firms use contingency fee agreements. The attorney deducts a percentage of your compensation.
Legal expenses for a personal injury case usually include filing costs, expert witness fees, and deposition expenses. Some attorneys deduct litigation costs before the contingency fee, and others do so after.
The Client Gets the New Settlement Check
When your lawyer pays all the fees, they produce a new settlement check. They mail the remaining settlement funds to you. Once you receive the money, you can deposit it and use the funds however you need.
How Minors Affect the Settlement Process
Children can collect compensation for accident-related injuries. However, the payment process for settlements involving minors can be complicated. You might have to wait a little longer for the settlement money from the insurance company.
The court must approve the settlement amount before anyone can sign release documents. Several states require a judge’s approval once the child’s compensation exceeds a specific limit. However, other jurisdictions need the courts to review settlement agreements regardless of the dollar amount.
Some cases require a conservator to request the court to approve the settlement terms. The probate court assigns the conservator, and the person usually is a parent or legal guardian.
When the insurer sends the child’s compensation, limitations can restrict access to the funds. A lawyer can explain how a minor affects the settlement process of a personal injury case.
Types of Damages in a Personal Injury Settlement
Special Compensatory Damages
In a personal injury lawsuit, the plaintiff can receive two types of compensatory damages. One is special compensatory damages, also known as economic damages. This category refers to the out-of-pocket costs a person pays due to an accident.
Special damages include various health care expenses. You could have ambulance, hospital, and physical therapy bills. The court further considers your need for medication or a medical device when calculating financial compensation for economic damages.
The injuries you receive could leave you out of work for a while. In addition to losing daily wages, you could miss out on a promotion. Alternatively, debilitating injuries may result in the loss of future earning potential. The liable party can reimburse you for what you lost.
A personal injury accident may cause property damage. You might spend money fixing or replacing a vehicle, phone, or other items. Hold onto your bills so your lawyer can use them to calculate the final value of special compensatory damages.
In wrongful death cases, surviving family members and dependents can get compensation for funeral and burial costs. Additionally, you could request the other party to pay for the medical care the victim received leading up to their death.
General Compensatory Damages
The other category for a personal injury settlement is general compensatory damages or non-economic damages. These costs are not quantifiable, and lawyers use different formulas to calculate them. Several losses fall under general damages.
Many people claim pain and suffering in their lawsuits if they experience long-term physical discomfort and emotional distress because of another person’s negligence. If you suffer from anxiety, insomnia, or PTSD, you can get reimbursement for pain and suffering in most personal injury claims.
Another type of general compensatory damage is a lower quality of life. Severe injuries can impact someone’s ability to enjoy life as they did before the accident. Disfigurement might worsen the victim’s mental health or cause them to isolate themselves from others. They could struggle to perform everyday activities.
Wrongful death lawsuits may grant family members and dependents money for loss of financial contribution. The court can also award compensation for loss of companionship to the deceased victim’s spouse.
Punitive Damages
Punitive damages are separate from compensatory damages. The goal of punitive damages is not to compensate the victim but to punish the defendant. If a drunk driver caused a severe accident, the judge might want to deter them and others from repeating the offense in the future.
Usually, the court awards punitive damages if evidence proves the defendant acted maliciously or with gross negligence. As a result, roughly 5 percent of trials where the plaintiff wins contain punitive damages as part of a settlement.
How to Calculate a Personal Injury Settlement Agreement
Special Damages
When you file a personal injury claim against the liable party, you should have an amount of compensation in mind. The law does not specify a formula for people to use when calculating damages. Lawyers typically use math formulas to estimate a fair settlement. Each law firm may have a certain method to find how much the other side owes you.
The easiest part of calculations involves special (economic) damages. A lawyer adds up the financial costs of medical care and uses pay stubs to find the total wages someone lost. Additionally, your attorney can estimate the amount of future accident-related expenses.
General Damages
On the other hand, calculations to determine a settlement amount for general damages may be more complex than for special damages. A lawyer usually considers the nature and extent of the injury. Other elements include the discomfort level the person was in and the duration of pain and suffering.
One method lawyers use involves increasing the value of special damages by a specific number. The number the attorney chooses depends on the circumstances of the case. Not all personal injury claims benefit from this approach.
Your lawyer might pick the daily rate method, also known as per diem. The formula looks at the number of days you suffered from your injuries. A lawyer assigns a daily dollar amount and adds all the days to find the value of general damages. The rate could be equivalent to your wages.
Punitive Damages
Some states limit how much a plaintiff can receive in punitive damages. A damage cap may apply to all or specific personal injury lawsuits. Your lawyer keeps the possible limitation in mind if they need to find a figure for punitive damages.
Calculations for punitive damages typically use the total compensatory damages as the base. The court can increase the base figure up to a specific amount.
Contributing Factors in a Settlement
The value of a case increases if you have multiple damages to claim. However, other elements contribute to the final settlement.
Contributing factors include:
- The severity of the damage. Acute injuries and extensive property damage are worth more in a personal injury lawsuit. For example, moderate traumatic brain injuries typically are worth over $100,000, but severe ones can be in the millions. An individual must deal with more bills and other consequences.
- The jurisdiction of the lawsuit. Where you file a lawsuit may affect the settlement of your case. Different jurisdictions may assign varying values to damages like pain and suffering. A court in one area could be more likely to award larger settlements than another in a different location.
- The recovery period. Plaintiffs can get additional compensation if they require more time to heal. A long duration usually means the person accumulates more medical expenses and missed daily wages.
- Communication with insurance adjusters. The adjuster will use what you say to prove you bear fault for the accident. Avoid giving a recorded statement or allowing them access to your medical records. Politely refer them to your lawyer and end the conversation.
- Available witnesses. A witness’s testimony can bolster your case. They support you by explaining how the defendant’s negligent action caused your injuries.
Plenty of other factors can raise or lower a settlement. Call a lawyer to maximize the potential value of your claim.
Contact Reiner, Slaughter & Frankel for a Settlement Payout
If you’ve suffered an injury due to someone else’s actions, navigating the legal landscape can be daunting, especially when it comes to negotiating a fair settlement. At Reiner, Slaughter & Frankel, our seasoned personal injury lawyers are here to guide you through this intricate process. We understand the complexities involved in negotiating with insurance companies to secure a settlement payment for you.
Don’t let the complexities of a personal injury claim overwhelm you. Let our dedicated legal team handle the negotiations while you focus on your recovery and well-being. Contact Reiner, Slaughter & Frankel today to schedule a free consultation. We will help you secure the justice and financial support you need to move forward with your life. Call our law firm at (530) 241-0290 or contact us online.