How Long After Signing a Release Will You Get a Settlement Check?

After your personal injury case is resolved, one of the final steps is receiving your settlement check. This payment is issued by the responsible party or their insurer to compensate you for your injuries.

Once you sign the release, you agree to settle your claim and forgo further legal action. However, you might be wondering to yourself, “How long does it take to receive your settlement check?” The time between signing the release and receiving your check can vary depending on several factors.

What Happens After a Settlement?

Once a settlement is reached, the insurance company issues a check in the amount of the agreed-upon compensation for your claim. Then, after the check is deposited into a trust account, your attorney will deduct any necessary expenses incurred during the litigation. These expenses may include:

Court filing fees
Expert witness fees
Copying charges
Travel expenses
Other related costs

While there are several types of attorney’s fees, many personal injury law firms like Fine, Farkash & Parlapiano, P.A. work on a contingency fee basis. In a contingency fee contract, you and your lawyer agree that the attorney will only receive a fee if you win your case.

However, you may still be responsible for case-related costs such as those listed above even if you lose your case. Additionally, if any advances on fees or costs have been made, your attorney’s office will refund any unused funds.

What Can Delay Your Settlement Check?

Receiving your personal injury settlement check may take longer than anticipated due to several factors that affect the processing and disbursement of funds. Being aware of these potential delays can help set realistic expectations and prepare you for any waiting periods.

Bank Delays

Banks have procedures in place to ensure the security and accuracy of transactions, and sometimes these can slow things down. Here are some common reasons why your check might take a bit longer to process:

When a check is for a large amount, banks may take extra steps to verify it.
They need to confirm that the transaction is genuine, which can add a bit of time.
Processing can be slower on weekends or holidays.
Any unusual activity may trigger additional internal reviews before funds are released.

Medical Liens

Medical liens happen when healthcare providers or insurers seek reimbursement for the medical bills incurred during your treatment. These claims can temporarily delay the release of your settlement funds as they must be addressed before the full amount can be disbursed to you. Here are some things to keep in mind:

Providers need time to settle and verify the amounts charged for your care.
There may be a period of negotiation with lien holders to confirm or adjust the reimbursement amounts.
Making sure that all medical charges are directly related to your injury requires gathering detailed documentation.
If multiple lien holders are involved, each one can add to the overall timeline before resolution.

Insurance Disputes and Delays

Insurance companies may sometimes face internal challenges that can delay the disbursement of your settlement check. These delays may happen when there are unresolved questions about claim details or when additional internal reviews are needed to ensure the settlement complies with policy terms. Consider the following:

Disagreements over the settlement amount may require further negotiation.
Requests for extra or clarifying documentation can extend the review process.
There may be differences in interpreting policy coverage or liability that require additional internal evaluation
Administrative slowdowns can be due to high workloads or staffing issues.

Severity of Injuries

The complexity and impact of your injuries can influence the timeline for settling your claim as well. In cases where injuries are serious, additional documentation and expert evaluations are often required, which can extend the process. Here’s what to keep in mind:

Extensive medical records and evaluations are needed to fully document the injuries.
Multiple expert opinions may be required to assess both current and future implications.
Detailed projections of long-term care and potential complications can slow down negotiations.
Discrepancies in evaluating the full scope of damages may lead to more discussions and delays.

How Personal Injury Settlements Are Paid in Florida

In Florida, once you and an insurer agree in writing to settle a personal injury claim, statute 627.4265 mandates that the insurer must issue payment according to the settlement terms no later than 20 days after the agreement is reached–unless an unavoidable delay occurs. Note that when a minor settlement exceeds $15,000, or in certain probate situations and in wrongful death cases, court approval is required before the funds can be disbursed.

Settlement payments generally come in two forms: lump-sum payments and structured settlements. Choosing between these options depends on factors such as the severity of your injuries, your current financial situation, and your long-term needs. Consulting with an experienced personal injury lawyer can help you make the best choice that meets your goals.

Lump-Sum Payment

A lump-sum payment is a common payment method where you receive the entire settlement amount in one payment. This covers damages outlined in your settlement, including:

Medical expenses
Lost wages
Pain and suffering
Other compensable losses

The biggest benefit of lump-sum payments is that you can deposit the check and receive immediate access to funds. They also allow you to manage and allocate the money according to your priorities right away.

Structured Settlement

On the other hand, a structured settlement involves periodic payments that are distributed over time. This is especially common in cases with a substantial settlement amount. Typically, the first payment is made shortly after the settlement is finalized, and the remaining money is paid out in regular installments over months or even years. This option provides a steady income stream, which can be beneficial for:

Ongoing medical treatment
Rehabilitation costs
Maintaining a consistent income

Taxes and Personal Injury Settlements in Florida

Florida doesn’t have a state income tax, which means that while you might have to pay federal taxes on certain parts of a settlement, you won’t have to pay state taxes. However, the federal government has strict policies regarding taxes and personal injury settlements. Here’s a breakdown of what’s taxable and what’s not:

Compensatory damages for physical injuries, including medical expenses, lost wages, and pain and suffering, are generally non-taxable.
Emotional distress damages directly related to a physical injury are non-taxable.
Emotional distress damages not connected to a physical injury are considered taxable income.
Punitive damages are taxable regardless of the nature of the injury.
Severance or dismissal pay is treated as wages and is taxable.
Damages for wrongful termination or breach of contract that compensate for economic loss are taxable if not connected to a physical injury.

Get the Settlement You Deserve With Our Florida Personal Injury Attorneys

When your personal injury case is settled, you should receive your compensation quickly and without unnecessary complications. At Fine, Farkash & Parlapiano, P.A., we are committed to helping you through every step of your case, protecting your rights, and helping you secure the settlement you deserve as quickly as possible. Contact us today to schedule your free consultation.

Sources:

Consumer Pamphlet: Attorney’s Fees – The Florida Bar

627.4265 Payment of settlement. – The Florida Legislature

Tax implications of settlements and judgments – IRS

Jack Fine

Mr. Fine was born in New York, New York, and was raised in the northeast, where he studied sociology at Colby College in Waterville, Maine. He then graduated with honors from the University of Florida Levin College of Law in 1976. In law school, he was a member of Phi Kappa Phi Honor Society, was inducted into the Order of the Coif, and graduated in the top 10 percent of his class. Mr. Fine was admitted into the Florida Bar in 1976, the United States District Court for the Middle District of Florida in 1977, the United States District Court for the Northern District of Florida in 1991, and the United States Court of Appeals 11th Circuit in 1982.