If you have been involved in a lawsuit that is close to resolution, you may want to focus on the settlement check. If the proceedings have been going on for a long time, you are anxious to get the money to pay medical bills and other living expenses. There are a few steps that must be followed before you can see the check. How long can a lawyer hold your settlement check ?
What can cause your settlement check to be delayed ?
It can take some time for you to receive the money after being awarded a settlement. There can be several reasons for the issue with settlement funds, and it can take months before you have funds to deposit with unexpected delays even after the case settles.
There are issues with the release form.
Once you are awarded a settlement, you will need to sign a release form for the insurance company, which states that you wo n’t pursue further legal action against the same person. The form wo n’t stop the current claims if you have multiple lawsuits against the same party. If either party disagrees with the terms, the form can be delayed. A revised form is needed to get everyone to sign. If more than one party is involved, you may have multiple release forms to sign.
Each state has its own rules regarding how long the insurance company has to process the settlement payment. It can take several weeks for the settlement check to be completed. The law allows the insurance company to delay the presentation of the funds. Do n’t expect to have the funds before the deadline, as it will take the maximum time.
The check needs to be cleared.
The check is usually sent to your attorney. If the check clears the bank, they will deposit it into a special trust account. It can take a week or more before the check can be deposited into your bank account.
After the check has cleared, the attorney will deduct their portion for attorney fees and charges incurred for representing you as part of the settlement process. They will have to pay any outstanding liens against the lawsuit and medical bills along with other related bills that have been presented. If the settlement amount is n’t enough to cover everything, the lawyer will observe the order for the debts to be paid. It can take some time for medical liens and other liens to be removed. It will be months before the funds are clear if it is a government agency ‘s lien.
Payment amounts are determined.
Your attorney may need to negotiate the amount with your debts. While most bills have a fixed amount such as outstanding medical bills, some may be less obvious, such as the costs involved with your lawsuit and legal services. This may include expert testimony.
Is it possible to speed up the process of getting a settlement payment ?
You ca n’t hurry through any part of a lawsuit, including the payment of the settlement, because it takes a lot of time. Even if the case is closed and the settlement has been awarded, you can still have a release form ready to sign.
While waiting for the release form to be accepted or the check to clear, you can work with your attorney to create a list of payments that must be made with the settlement money. When the funds are available, this step will speed up the payment portion.
What if you have a structured settlement ?
A structured settlement can happen when there is a major injury. You would receive regular settlement checks instead of one payment. This is most likely the case when your medical treatment is ongoing. Settlement checks can be scheduled for a long time.
Is it possible to get cash from your settlement ?
It is possible to get cash more quickly based on your settlement amount. There are two ways to help you out until you get the funds from your settlement agreement.
You should advance from your attorney.
If you explain that you need the money quickly, your attorney may give you a cash advance on your settlement. If your lawyer chooses to hold your settlement check until it is ready to be paid out to you, they are n’t obligated to do so. If you have a good attorney-client relationship and you are getting a large settlement over the amount of bills and expenses, the attorney may be more likely to agree to an advance.
Funding is based on your lawsuit settlement.
Another option is to apply for funding from a company that specializes in litigation funding. This type of litigation funding is more likely to be offered as a lawsuit loan, and if so, is a cash advance made based on a resolved lawsuit and final settlement. Pre-settlement fundings, which are nonrecourse transactions typically offered through a purchase agreement, are different from these types of fundings. You can use these funds to get by until your check arrives.
How does a lawsuit loan work ?
Post-settlement cash advances are different from traditional litigation fundings for a number of reasons. The person applying for a loan does not need to have good credit or employment history. The lender does not care about your income or ability to repay the loan. It makes it easier for someone to get an advance on their settlement money. The determining factor for approval is the settlement amount. The case will be discussed with your personal injury attorney by the lender.
The lawsuit loan is different from traditional loans in that you do n’t have to make monthly payments. Payments will be made once the lawsuit is settled. Your personal injury lawyer will pay one of the bills before releasing the rest of the funds to you.
A post-settlement lawsuit loan is different from traditional litigation funding because the lender will not assume the risk of non-payment and will require repayment of the loan should you not receive your settlement check. It is important to understand that the lender will be expecting repayment of the post-settlement loan, even though this would be extremely unlikely after a settlement is agreed to a finalized before the court.
There is risk with litigation funding.
The funder assumes all the risk with litigation funding. They do n’t get paid if the lawsuit is n’t awarded. The funder only gets back part of their funding if the final award is less than expected. The risk is on the funder. It can be difficult to get approved for litigation funding.
You may want to consider a post-settlement loan if you are wondering how long a settlement check will take to clear and how long you will have to wait to get the money. If you are waiting for the disbursement of the settlement award, you may be able to get the money you need.
It is possible that you are concerned about how much risk you have when trying to find pre-settlement funding. Not all funders are reliable for this type of financial product. To find a funding company who will protect you while also benefiting from the funding, you will want to do your research. Sharing any contract offer you receive with your personal injury attorney will make sure you do n’t become obligated or assume more risk than expected.
Oasis Financial strives to maintain excellence and transparency in all transactions. We can help you with medical expenses and other financial obligations until you receive your settlement check, if you are in need of settlement money before it can be released to you. If you fill out the application quickly, you will be able to find out if you are approved for funding.