How to Track Settlement Check | An Expert Guide

Many people ask how to track settlement checks. Well, the process for personal injury claims can take sufficient time to go on. When you step into the investigation procedure, insurance claims, pretrial negotiations, and medical evaluations, you can have a year to take to end the necessary process. However, when you complete your claim process, you will receive a valuable reward, the settlement check. Let’s learn how to track settlement check.

When you file a request for the insurance claim or injury lawsuit, you have a right to receive the compensatory damages to recover from the losses you obtained from the injury. These losses include lost wages, past and future medical expenses. Property damage, sufferings and pains, and the possible punitive damages to the at-fault party as a punishment.

So go through the process of how you can track a settlement check given below.

What is Legal Settlement?

A legal settlement represents a formal legal agreement. So it results in the discharge of the case in the civil court system and officially ends the dispute. According to the information and data released by the Bureau of justice statistics, only 4 % of the personal injury cases approach the resolution process in the trial phase. 

How to Track my Settlement Check?

The steps to track a settlement check

The lawsuit settlements for personal injury do not end with the negotiations for settlement. To get your settlement checks, you have to undergo the required steps to release them. In addition to these steps, you sign the release forms and essential documents. Also the approval of the insurance process, payments of legal liens and fees, and getting the check to clear.

The signing of important documents and release forms

A document referred to as the settlement order will be issued when you approach the settlement process with the defense attorney or lawyer and the at-fault party. Based on the court’s order, you and the at-fault party should complete the documents required within 30 or 60 days.

One of the most key documents for the settlement of checks is the release. The preparation of the release document is done by the defense attorney of the at-fault party. This will configure the terms and conditions of the settlement check.

This release document will prove that you will not claim the additional damages from the opposing party for the particular injury you already mentioned in a claim form. All this, along with the other information required for the defense. The release can be lengthy or short, depending on the conditions of your case and the attorney’s will.

Revision of the documents by an attorney

The attorney will analyze the documents and ensure that all the terms and conditions are according to your interests. If your attorney is not satisfied and agrees with any terms or conditions, he will reach the defensive party to agree. If the attorneys will not come, the judge has to play his role in resolving the issue. The process can take a long time to receive your check.

When your attorney and the defense attorney come for the agreement of release, you will then receive it. Before signing the document, could you read it carefully and then sign it? It would help if you asked your attorney to clear the information. Then sign it in the presence of the notary public. When you sign the document, you cannot change the terms and conditions of the document. Your signature identifies that you fully agree to the terms and conditions.

After signing the release document, your attorney will send the defense document to your defense attorney. Next, the insurance company takes the steps for the next process.

Insurance companies release the checks.

The protection company of the at-fault party is completely responsible for the payment of your settlement. The company cannot release or write the check without getting the release form. When you complete the release form, sign it, and the company will get it, it will begin the process.

The insurance company is liable to write the settlement check as soon as it gets your release form, but the internal problems can slow down the process. The insurance company will give the check payable to you and your attorney. They cannot provide the check to you because your attorney has to deduct some payments from the check before you get it. After the process of the insurance company, the company will directly send the check to your attorney. 

Checks deposited and liens paid

The settlement of the check will reach your attorney’s office by the insurance company. The attorney will submit the check-in of the escrow account, where it will remain until the bank clears the payments and funds. One of the main aims of depositing the check into the escrow account is to ensure that the insurance company has sufficient funds to pay your settlement payments. When your check is approved in the escrow account, your attorney can arrange a portion of your settlement money. 

If you have any outstanding liens, your attorney will possess your check for longer. Your attorney cannot release your check until they pay them for your settlement funds for the payments of pending liens. 

• You can possess liens for the unpaid bills to the medical provider.
• You have to reimburse the public health care providers or insurance companies to pay for the medical treatments related to the illness or injury.
• If you have a child from your previous spouse, your attorney will pay minus your settlement check to pay the outstanding balance.

Therefore, it is important to pay the liens before receiving the settlement checks. If you do not pay the liens to the government, health care providers, or insurance companies, you can face legal issues. The legal attorney will handle these issues on your behalf.

Pay the legal fees and costs.

Your attorney will deduct the legal fees and costs from the settlement amount before receiving your settlement check. You should have the signed agreement of payment known as contingency fees before the hiring of an attorney. This agreement states that your attorney can deduct the required percentage from the settlement check for legal fees. 

Contingency fees are a great tool to reduce out-of-pocket costs to get the legal services to the best level possible. The attorney will deduct 33% from the settlement check as payment on average. The attorney fees are different in different states. At the end of the claim, if you do not get your settlement check, you don’t have to pay the fees for the attorneys. 

Receive your settlement check

When your attorney clears all the legal fees, liens, and applicable case costs, the company will write a check for the remaining settlement amount. Your attorney will send the check to the address he files for you. It depends on the proximity of your area and the location of the company. You will get the check-in six weeks after mailing. You can start your financial recovery process and deposit your funds in any account you want.

Frequently Asked Questions

Is there a hold on settlement checks?

Your bank might restrict the funds you’re withdrawing for a certain time. In some cases, it could be up to seven days or even longer, depending on their policies and average balance in customer accounts. This means that if they think there’s a chance we’ll run off with money from them, these banks will place holds before releasing access codes, so make sure never take out more than what can fit into your wallet!

How long does it take to cash a settlement check?

When your attorney receives your settlement check, your lawyer will submit the check into the law office trust account. Once the check clears and has been dropped to the trust account your attorney will issue the check and will take 1 to 3 days to clear.

How does a settlement check works?

After your attorney clears all of your liens, legal fees, and applied costs, the company will write a check to the settlement of your check. Your lawyer will send the check and forward it to the address given.

What to do with settlement checks?

You can double-check the facts about tax, hire a financial advisor, boost your savings, pay off the debts and invest in the business.

How long does it take for a large check to clear?

Under the Expedited Funds Availability Act of 1987, a check-up to $200 must be available on the next day. But a check of more than this amount can take a reasonable period between two to seven business days.  

Conclusion

So it is concluded that to track a settlement, it is better to hire a personal injury attorney who can help you out from the challenging situation. Although your lawyer gets the check for dissolving checks for legal contingency fees and liens, your attorney is the authorized person responsible for checking the process of settlement checks.

The tracking process of your settlement checks starts from determining how long the defendant’s insurance company has to defer the release form. Your lawyer or attorney will have the insurance company know whether the company has submitted the paper documents (or not). 

Having the injury is your fault can create life-changing financial issues. So you should be protective by hiring a professional and experienced attorney to beat your rights and track the settlement check.

References

• https://policy.umn.edu/research/academicmisconduct-proc03
• https://www.jstor.org/stable/2555547
• https://bjs.ojp.gov/sites/g/files/xyckuh236/files/media/document/bjsworkshop.pdf
• https://www.tdi.texas.gov/pubs/consumer/cb020.html
• https://www.consumerfinance.gov/rules-policy/regulations/1024/17/
• https://www.forthepeople.com/personal-injury-lawsuits/how-do-I-cash-my-personal-injury-settlement-check/
• https://www.federalreserve.gov/paymentsystems/regcc-about.htm