How Do You Get Paid When Your Claim Is Settled?

You might feel like the weight of the world has been lifted off your shoulders after you reach a settlement agreement in a personal injury lawsuit. Settling a case should put you in a position to collect enough compensation to cover accident-related costs.

But in the aftermath of a settlement, you might wonder, “How do you get paid when your claim is settled?” It won’t always happen overnight.

Learn about a few ways you might be paid after a personal injury claim is settled below.

You Might Receive a Check Directly From a Defendant or an Insurance Company

Did you file a lawsuit without legal representation? In this instance, you may receive a check directly from either the defendant in your case or the insurance company that provides the defendant with coverage.

But even if this is how you’re paid after settling a personal injury lawsuit, you won’t typically receive a check in a matter of just a few days. Oftentimes, you’ll have to wait a few weeks and possibly more than a month before a check arrives.

Sometimes, particularly in larger settlements, you’ll have the option to receive your settlement in one lump sum payment or choose to receive a structured settlement. A structured settlement would allow you to collect installment payments over time.

You May Receive a Check From Your Personal Injury Lawyer

If you called on a personal injury lawyer to represent you during a personal injury lawsuit, you probably won’t receive a check directly from a defendant or insurance company after reaching a settlement. In this case, your attorney will need to collect the contingency fee that you agreed to pay them if they earned you a settlement or judgment.

Therefore, the defendant or insurance company in your case won’t send a check your way. Instead, they will send a check to your personal injury lawyer. Your lawyer will collect their attorney fees and pay off any medical liens you may have agreed to before sending the remaining funds to you.

You May Also Receive a Check From an Escrow Account

Class-action claims have a different answer to the question, “How do you get paid when your claim is settled?” than other types of legal claims. They involve either an individual or a small group of people filing a lawsuit on behalf of a larger group of people.

If a class-action lawsuit is settled, the defendant in the case will usually place the full settlement amount into an escrow account controlled by a third party. This third party will distribute the funds from it to those who were a part of the larger group filing a class-action claim.

Let Us Explain How You’ll Be Paid When a Personal Injury Claim Is Settled

The answer to the question, “How do you get paid when your claim is settled?” isn’t always as simple as it might seem. Jeffrey R. Davis, P.A. can provide a more thorough answer based on the circumstances surrounding your case. Call us at (305) 577-3777 today.