You might have negotiated a fair amount of both economic damages and non-economic damages with the defendant or their insurance company during your personal injury claim. So when do you receive your money?
Although the answer to that question is uncertain, there are some steps that most cases will go through that can give you insight. The easiest way to know is to contact your personal injury attorney in St. Louis; until then, read on for further information.
The Settlement Check Process
Following are the steps that have to take place before you can receive your money.
Draft a Settlement and Release Agreement
After both sides have reached an agreement in principle, there should be no remaining major disagreements. Lawyers for both sides, however, might want to dicker with the exact wording of the settlement and release agreement agreement.
A settlement is a certain amount of compensation that you receive. A release is your binding promise to drop your personal injury claim and abandon any related claim.
Sign the Agreement
Both parties should sign the agreement in the presence of a Notary Public. It is best if both of you sign at the same time and place. Each party should hold a copy of the agreement including the original signatures of each party.
Issuance of the Settlement Check
For most personal injury claims, an insurance company pays the settlement amount. If you are dealing with a very large insurance company with multiple layers of bureaucracy, the issuance of a check might take some time.
Deduct Any Appropriate Amounts
Your lawyer should receive the settlement funds into their attorney trust account. Depositing the money into this special account prevents your attorney from commingling your funds with their own funds.
So how long can a lawyer hold your settlement check? They can hold it for a “reasonable time”, depending on how many deductions they need to apply. Following is a list of typical deductions, though keep in mind your case might not involve all of these:
- The lawyer’s contingency fee, which typically amounts to 30% or 40% of the total;
- Case expenses, such as investigation expenses or expert witness fees.
- Any amount outstanding on a medical lien, if you took out a lien on your personal injury settlement to guarantee payment of your medical bills.
- Overdue child support payments, whether or not related to your personal injury case.
After making deductions, your lawyer will transfer whatever remains to you.
Find the Money in Your Bank Account
You should find the money in your bank account shortly after the transfer. Fortunately, personal injury damages are almost tax-free except for punitive damages. The IRS taxes punitive damages as ordinary income, however, in most cases. It also taxes damages for emotional distress that do not directly arise from a physical injury. Talk to a tax lawyer if you have any questions.
Possible Delays
If you don’t receive your settlement as quickly as you anticipated. it could be for one of the following reasons:
- The victim died and you represent the victim’s relatives in a wrongful death case.
- The victim of the accident is under 18 years old. This frequently complicates settlement procedures due to legal oversight of the minor’s settlement funds.
- The insurance company is unjustifiably delaying payment of your claim.
- Bureaucratic delay (see above).
Talk to your lawyer about any unexpected payment delays.
Enforcement
It’s possible that the defendant or the insurance company will refuse to pay your personal injury damages even after signing a settlement agreement. This doesn’t happen very often, but it does happen from time to time.
If you wish to compel payment, you will need to file a lawsuit citing the settlement agreement as a binding contract. If you win the lawsuit and the defendant still doesn’t pay, you will need to file an enforcement action seeking a court order to seize the defendant’s assets.
Consider Hiring a Personal Injury Lawyer
If you were involved in an accident that wasn’t your fault, reaching out to an attorney for a free consultation is likely worth your time. If you have a solid case, you could walk away with a lucrative settlement that makes you whole again. Your lawyer can handle your claim from start to finish while you focus on your recovery.
Contact our St. Louis Personal Injury Lawyers from Eason Car Accident and Personal Injury Lawyers for Help Today
For more information, please contact Eason Car Accident and Personal Injury Lawyers to schedule a free consultation with a personal injury attorney in St. Louis today. We have two convenient locations in Missouri, including St. Louis and Richmond Heights.
We proudly serve St. Louis County and its surrounding areas.
Eason Car Accident and Personal Injury Lawyers – St. Louis Office
10 S Broadway #560
St. Louis, MO 63102
(314) 932 – 1066
Eason Car Accident and Personal Injury Lawyers – Richmond Heights Office
1034 S Brentwood Blvd Penthouse 1-C
Richmond Heights, MO 63117
(314) 932 – 1066