Deriving relief from a personal injury or civil lawsuit can occur after months-at a time-full of negotiation and legal contestation. However, once the settlement agreement is reached, many clients wonder: how long to get a settlement check after signing release? The end may be in sight, but this is not an instant process. Managers of expectations need to understand what happens next and the time required for it.
A number of channels have to be traversed before you can access your money from release form and settlement check to attorney processing to the distribution of funds. Let’s break down each of these steps, and then we’ll explain what the expected timeline looks like for receiving your final settlement payment in return.
What Happens After You Sign a Settlement Release?
Once you settle, you will sign a release form. A release is a legal paper stating that you will not sue any further on this issue in exchange for the agreed-upon sum. You have to sign the release before any disbursement of funds goes through.
The moment the release is signed and sent back to the insurer or the opposing counsel, this kicks off the process to make the final settlement payment. This means that the party at fault is legally bound to pay up, though it may take some weeks after that to bring the check due to jurisdiction and kind of case, before the payment arrives.
Steps Before Receiving a Settlement Check
It should also be noted that immediately after signing the release there are several steps before the money reaches you. The actions taken in these steps ensure that the funds are properly managed, distributed, and documented under the law.
Here are the key steps prior to receiving a settlement check:
- Collection of Signed Release Form Submission: Your lawyer provides your signed release to the other party or insurer.
- Issuance of Check: The insurer processes the request and issues the check at your attorney’s office.
- Deposit into Trust Account: The check is deposited in the attorney’s client trust account and has to clear for a while.
- Deductions of Fees and Liens: Attorney’s fees, costs of court, and any medicare or lien payments are deducted.
- Final Distribution: Once everything is cleared, the balance will then be disbursed to you.
How Long to Get a Settlement Check After Signing a Release?
So, how long does it take to get a settlement check after signing release? On average, the process takes probably two to six weeks; some states have timeframes to be followed in such, while others go by the industry standard and attorney coordination.
Two weeks is toward the quicker end but, with factors such as lien negotiations, processing times for the insurance company, or check clearance with the bank, delays are common. If everything is handled well, however, you can expect your settlement check within a month of signing the release.
Average Time to Get Your Settlement Check
However, the average time in between when the case closes and when an individual gets a check is about 4 to 6 weeks, but it surely differs by location and the complexity of an individual’s case. Simple scenarios, without medical liens or entitlements on appeals, should be very quick.
And yet, for more involved settlements that might involve many parties or unpaid bills, the norm may run quite a bit longer than 6 weeks. Always stay in touch with your attorney during this time as he would be able to give you updates in case of delays with reference to the processing time that is specific to your case.
How Long Does It Take in Texas?
So, if you’re wondering how long the wait is for settlement checks after signing release in Texas, state law really tells you quite a bit about that. As a general rule, under Texas law, if a release is signed, the insurance company is supposed to send the settlement check within five business days. Of course, it may take longer for actual disbursement by the insurance company for processing and clearance.
Unfortunately, the courts in Texas grant further time for the lawyer to deduct legal fees and settle any liens, which might take up to another 7 to 14 days. All in, then, expect this to take about 2 to 3 weeks in Texas, barring any unforeseen complications.
Understanding the Final Settlement Payment Process
A final settlement payment will not merely be a check cut. Once the release form is signed, insurers must assure that all conditions of the agreement have been satisfied before issuing a check (often made out to your law firm).
Your lawyer places the check into a client trust account and then waits until it’s cleared. During this time, they’ll calculate and deduct legal fees, pay all outstanding medical bills or liens, then prepare a disbursement check for you. It’s a long process involving many precautions to ensure the legal protections of all parties involved.
One should know that this waiting time is not attributed to laxity- it is part of a legal process which is necessary. The money has to be legally deposited in a trust account until it is cleared and released to the right person when there are various people to be paid out of your settlement. This should not be rushed since you might run into legal issues or fail to pay which is eventually going to come back to bite you.
Common Causes of Settlement Disbursement Delay
Delays happen-and oftentimes they are really annoying. Here are the common reasons why settlements would take longer to disburse:
- Outstanding medical bills or liens to be satisfied
- Delays in processing and internal approval by insurers
- Garnishment or child support court orders requiring attention
- Bank clearances when depositing large checks
- Errors or incomplete documentation in release or settlement paperwork
These issues can add days or weeks to the timeline, so don’t be alarmed when your case falls outside the normal four-week window.
When to Contact Your Attorney About Delays
If you have not received your check in more than six weeks, contacting your attorney for an update is reasonable. Simply a call or an email can get you acquainted if it results from some issue, such as delayed receipt from the insurer or still pending lien negotiations.
Be patient and proactive; your attorney is usually working behind the scenes to finalize everything. However, if there is no communication or it seems too long, it is easy to ask for a written status update on the settlement disbursement timeline.
Conclusion
The journey is not over; even if you have reached a settlement, there is still a process before you see the actual money in your account. You could ask how long you’ll get a settlement check after signing the release or what causes the delays in disbursement. Knowing each step helps relieve much stress and anxiety.
Typically, a check should be received within two to six weeks, depending as well on your case and state laws. So stay in touch with your attorney, follow up appropriately, and rest assured your final settlement payment is on its way.
