How Long Does it Take to Get Paid?

Congratulations! Your claim has been resolved and a payout is headed your way. With the many medical expenses and other costs related to an injury, the funds from a personal injury claim are essential to staying on the path to recovery. 

While we understand that it’s important to get the money as soon as possible, there are a few things that have to happen before it hits your bank account. 

The process for a payout is slightly different for settlements and verdicts. Settlements refer to any agreement made between you and the person/business you’re suing outside of a courtroom. A settlement can sometimes happen during a trial, but is separate from the court proceedings. A verdict is decided by a jury at the end of a trial, who will also determine the award amount. 

Getting Paid from a Settlement 

The vast majority of personal injury claims are resolved by a settlement. While Morgan & Morgan attorneys are unafraid to go to trial, taking it to the courtroom only becomes the right option when the other side isn’t playing fair and is offering much less than you deserve. Sometimes, a fair settlement offer is made and the courtroom can be avoided. Settlement payouts take much quicker to process, so the funds are available sooner. Here’s how it works. 

• You’ll sign a release. First, you’ll need to sign a form that says you won’t pursue any further damages (i.e. money) from the defendant’s insurance company. This protects them from any more lawsuits for the same injury.
• The release will be processed. The insurance company will process the form and then issue a settlement check, usually made payable to both you and your attorney, and sent directly to your attorney. 
• Your attorney will deposit the check and pay your debts (sometimes). In some states, certain debts, like medical expenses, must be paid out of the settlement first. Your lawyer will put the money into a special trust or escrow account before they distribute the money and pay your debts from this fund. In other states, it is the client’s responsibility to pay those debts.
• Your attorney will deduct legal fees from the final payment. Legal fees include court costs, expert witness fees, and their own fee for representing you — this is typically a percentage amount you agreed to before they took on the case. 
• You’ll be issued a closing statement. A closing statement is a document that will outline all of the expenses mentioned above and how much money is left. Usually, these funds are tax free! Ask your attorney if you should expect taxes to be taken from your settlement. 
• Then you receive your settlement money! Payments are issued 7-10 business days after the closing statement is signed, either via paper check or direct deposit. It’s up to you. 

Sometimes, there are delays that happen before you see the money from your settlement. One common delay is when the defendant has their own release form that needs to be looked over by both sides’ attorneys. Other cases have extra paperwork to deal with, like those involving estates. 

If everything goes according to plan, you should receive your check within six weeks. If it’s been more than a month and a half since you’ve settled your case and you haven’t seen your money, call your attorney.

Getting Paid From a Verdict 

Sometimes, taking your case to the courtroom will give you your best chance at a fair outcome. Trying your case before a jury might make things take longer, but it will also give you a chance at a much larger award. 

Getting paid from a verdict is similar to getting paid from a settlement, with a few differences. 

• You don’t need to sign a release form. A release form is a document that says you won’t pursue any further money for this injury, but since you can’t bring a case in court twice anyway, it’s not necessary in a verdict. 
• A check will be issued and sent to your attorney. 
• Your attorney will deposit the check and pay your debts (sometimes). In some states, certain debts, like medical expenses, must be paid out of the settlement first. Your lawyer will put the money into a special trust or escrow account before they distribute the money and pay your debts from this fund. In other states, it is the client’s responsibility to pay those debts.
• Your attorney will deduct legal fees from the final payment. Legal fees include court costs, expert witness fees, and their own fee for representing you — this is typically a percentage amount you agreed to before they took on the case. 
• You’ll be issued a closing statement. A closing statement is a document that will outline all of the expenses mentioned above and how much money is left. Usually, these funds are tax free! Ask your attorney if you should expect taxes to be taken from your verdict. 
• Then you receive your verdict money! Payments are issued 7-10 business days after the closing statement is signed, either via paper check or direct deposit. It’s up to you. 

Here’s the thing. Although it happens rarely, sometimes the person or business you’re suing may appeal the verdict. This can push a payout by months or even years as the case goes through the appeals process. This is unlikely to happen though, and talk to your attorney to understand what this may mean for your case specifically. 

Justice has been served. 

No amount of money can compare to what’s been lost, but securing a settlement or verdict can hold harm accountable and alleviate your burden on the path to recovery. 

Want to understand more about how it all works? Just give us a call anytime.