Once a settlement is reached, how long does it take to get paid?

The goal of a personal injury case is to reach a fair settlement agreement with the relevant insurance companies. This is usually the most efficient and cost-effective way to resolve a personal injury claim. With bills piling up during the legal process, it is natural to wonder: if you sign a settlement agreement, however, how long will you have to wait to receive your check?

Once a settlement is reached, the timing of receiving payment can vary depending on several factors. First, it is important to understand that settling a case does not automatically guarantee immediate payment. There may be additional steps involved in the process before the funds are disbursed. For example, the settlement agreement may require the defendant or their insurance company to submit the payment within a certain timeframe. However, some defendants may delay or even refuse payment, leading to further complications.

Additionally, the amount of the settlement itself can affect the timeline. Larger settlements may involve more complex negotiations or require approval from multiple parties, lengthening the time it takes to receive payment.

Lastly, the efficiency of the legal team handling your case can impact the speed of payment processing. Therefore, if you need assistance with a personal injury case and want to ensure a smooth and timely settlement and payment process, you need to consult with a reputable law firm like Parnall Law.

Our experienced New Mexico personal injury attorneys can guide you through every step of your case – from start to finish – and advocate for your rightful compensation. Contact Parnall Law today to learn more.

Step-by-step process before a settlement is paid

Once you accept a settlement offer, it is understandable that you want your payment as soon as possible. After all, you have been through a lot with injuries, costly treatment, time away from work, and more.

But before a settlement can be paid to an injured claimant, several necessary steps must be completed to ensure a smooth and orderly distribution of funds. This ensures that all parties receive their necessary payments from your settlement before you receive the remainder of the distribution.

Let’s take a closer look at each step that follows a settlement agreement.

Accept a settlement offer

Once a settlement offer is made in a personal injury case, you have the option to either accept or reject it. It is crucial to carefully consider the offer and consult with your attorney to determine if it is fair and adequate compensation for your damages.

Before making a decision, you must also understand all of the potential implications. While accepting a settlement offer may provide a quick resolution, you and your personal injury attorney must weigh the pros and cons of each option.

One of the key factors to consider when deciding whether to accept a settlement offer is the amount being offered. Your attorney can assess the value of your case and negotiate for a fair settlement that adequately compensates you for your losses. They will consider various factors, such as medical expenses, lost wages, pain and suffering, and future damages. With their experience, they can determine if the offer aligns with the true value of your case.

Another aspect to consider is the long-term impact of accepting a settlement offer. Once a settlement is reached, it is typically final and legally binding. This means that you may lose the right to pursue any further legal action in relation to your case. An attorney can review the settlement terms and ensure they are fair and reasonable, taking into account any potential future repercussions.

The decision to accept a settlement offer should not be made lightly. Consulting with a skilled personal injury attorney is imperative to fully understand the implications and make an informed choice.

Your attorney will negotiate on your behalf to secure the best possible outcome, and if you decide together that a settlement offer meets your needs, your lawyer can inform the insurance company that you accept it.

Settlement agreement and release of liability is drafted, reviewed, and approved

Once a settlement is accepted, a settlement agreement and release of liability will be drafted by your attorney or the insurance company. This document outlines the terms of the settlement, including the amount of compensation, any additional conditions, and the release of the defendant from further liability. Once you sign, you cannot seek additional compensation from the insurer regarding this accident or injury.

Both parties will review and negotiate the terms until an agreement is reached. Never sign anything without a careful review by a trusted legal professional who fully understands your situation and losses. If we need to negotiate any settlement terms with the insurance company, it must happen now, before you sign an agreement.

You sign the settlement agreement

Once the settlement agreement is finalized, you will need to sign it to indicate your acceptance of the terms. Your personal injury attorney will guide you through this process and ensure that you fully understand the implications of signing the agreement. Again, you should only sign an agreement once you are fully confident in the decision with counsel from your attorney.

While your case is not fully closed until you receive your funds, your signature on a settlement agreement is a key step in the resolution of your case.

We return the signed agreement to the insurance company and request your settlement check

Once you have signed the settlement agreement, your attorney will return it to the defendant’s insurance company, along with a request for payment. The insurance company will then process the request and issue the settlement check. This step can take longer, depending on the insurance company’s timeline and process.

Our legal team negotiates and verifies all medical liens and subrogation claims

Before the settlement funds can be disbursed, your attorney will negotiate and verify any outstanding medical liens and subrogation claims.

When a person is injured in an accident and seeks medical treatment, they likely have medical bills that need to be paid. In some cases, medical providers may place a lien on any potential settlement the injured person receives from their personal injury claim. A medical lien is a legal claim that gives the medical provider the right to receive payment for their services out of the settlement proceeds.

Subrogation, on the other hand, is the process by which an insurance company seeks reimbursement from a third party that caused an accident or injury. This means that if an injured person’s insurance company pays for their medical expenses or property damage, the insurance company may have the right to recoup those costs through subrogation.

Your injury attorney can negotiate with medical providers and insurance companies to potentially reduce the amount of the liens and subrogation claims, ensuring that you receive the maximum amount of compensation from your settlement.

We prepare a settlement distribution packet with all supporting documentation

To ensure a smooth distribution of the settlement funds, our legal team will prepare a settlement distribution packet. This packet includes all the necessary supporting documentation, such as medical records, bills, and any other relevant information. You do not have to worry about putting any of this information together with our legal team supporting you.

We review the settlement distribution package with you before you sign

Before the settlement package is finalized, we will review it with you to ensure that all the necessary details are accurate and that you are satisfied with the proposed distribution. This step allows you to provide feedback and make any necessary changes before signing the package. We make sure you fully understand everything before proceeding.

We submit payments to all providers and distribute the rest of the settlement to you

Once all the necessary approvals and signatures are obtained, we will submit payments to all medical providers and any other relevant parties. After all payments are made, the remaining funds will be distributed to you as your share of the settlement.

Factors that delay the payment of the settlement

While the goal is to receive the settlement payment as quickly as possible, certain factors can delay the process. Some common factors that may cause delays include:

• Disputes or disagreements over the settlement amount: If there are disputes between the parties regarding the fair compensation for damages, it may take longer to reach a settlement agreement.
• Complex negotiations: In cases involving larger settlements or multiple parties, negotiations can be more complex and time-consuming, resulting in delays in receiving payment.
• Insurance company bureaucracy: Insurance companies may have internal processes and approvals that can slow down the payment process. It is essential to have a legal team that understands how to navigate these complexities.
• Outstanding liens and subrogation claims: If there are outstanding liens or subrogation claims, it may take additional time to negotiate and resolve these issues before the settlement payment can be made.
• Court approval: In some cases, settlements may require court approval, which can add extra time to the process.
• Defendant’s unwillingness to pay: In certain situations, the defendant may delay or refuse to make the settlement payment, requiring additional legal action to enforce the agreement.

What can help to speed up the process?

While some factors may be beyond your control, there are steps you can take to help speed up the settlement payment process:

• Work with an experienced attorney: Hiring a reputable personal injury law firm with a track record of successfully handling settlement cases can greatly expedite the process. Their expertise and knowledge of the legal system will ensure that all necessary steps are taken promptly and efficiently.
• Provide prompt and accurate documentation: Timely submission of all required documents, such as medical records, bills, and other relevant information, will help expedite the settlement process. Ensure that all information is accurate and complete to avoid any unnecessary delays or requests for additional information.
• Cooperate with your legal team: Collaboration with your legal team is crucial. Respond promptly to their requests for information or assistance, attend all scheduled meetings or appointments, and provide any necessary documentation or witnesses needed for the case.
• Stay informed and involved: Stay in regular contact with your attorney to stay informed about the progress of your case. Ask questions, communicate any concerns, and actively participate in the decision-making process to keep the process moving forward.
• Be open to negotiation: In some cases, being open to negotiation and compromise can help expedite the settlement process. Trust your attorney’s advice and guidance throughout the negotiation process.

How much will I get paid?

The amount you will receive from a settlement depends on various factors, including the severity of your injuries, the impact on your daily life, and the financial losses you have incurred. A personal injury attorney can evaluate your case, calculate your damages, and determine the appropriate compensation you may be entitled to receive.

Will I get paid in a lump sum payment or in a structured settlement?

Whether you receive a lump sum payment or a structured settlement depends on the specifics of your case and the negotiated terms of the settlement. A lump sum payment provides you with the entire settlement amount upfront, while a structured settlement involves receiving payments over a specified period or in recurring installments.

There are advantages and disadvantages to both options, and the choice depends on your personal circumstances and financial goals. Your attorney can explain the pros and cons of each option and help you make an informed decision.

Seek representation from a New Mexico personal injury law firm today

The final steps of settling a personal injury case can be challenging, especially when ensuring a smooth and timely payment process. That’s why you should seek representation from a reputable personal injury law firm like Parnall Law.

Our experienced attorneys understand the process from start to finish and can guide you through each step, advocating for your rightful compensation.

Don’t delay in seeking the legal assistance you need. Contact Parnall Law today at (505) 268-6500 to schedule a free consultation and learn more about how we can help you with your personal injury case.