How Are Settlement Checks Mailed?
If you are involved in a personal injury case, one major milestone is when you reach a settlement agreement with the insurance company. A personal injury settlement check will then be issued, but the process takes a little time to complete before you receive the money.
You’ll need to sign a release agreement and await the delivery of your check. There may even be delays before you get your check. If you do not have a personal injury attorney, you will likely get your check in the mail. If you have a personal injury lawyer, then they may receive the funds first, allowing them to deduct their portion of the fees before giving you the remainder of the settlement.
Take a closer look at the settlement check process to have a better idea of what to expect when your check is mailed.
Who Sends The Settlement Check?
Settlement checks usually come from the at-fault party’s insurance company. The insurance company sends the check after it processes the release that you sign. Once signed, the insurance company has a legal obligation to write and send the check as soon as possible. Sometimes, internal issues may slow down the process.
In some states, there are deadlines for the settlement process in personal injury cases. They may require that the defendant provides the settlement funds right after the release form has been signed. In certain cases, interest may accrue from the date the release was signed, making the defendant and their insurance company act more quickly to issue prompt payment.
Once the insurance company receives your release, they have strict internal procedures they must follow when issuing a settlement check. Most of the time, the settlement check will be issued to both you and your personal injury attorney. The check will usually be sent to the personal injury lawyer on the case, but if you are not working with an attorney, it will be issued to you in person or delivered via certified mail.
How Do Banks Verify Settlement Checks?
When you get your settlement check, you should take it to the bank. It’s important to realize that you may not be able to access the full amount of the funds immediately with settlement checks, particularly ones with large sums.
It will depend on your usual bank balance and the bank’s policies. Some banks will put a hold on the funds for a week or more. Additionally, when depositing your settlement check, the bank will usually require that you present two forms of photo ID, such as your driver’s license and a passport. The issuing bank may need to be called to verify your settlement check, and you may be asked some questions, though this is a normal bank process. Once the settlement check is verified and any waiting periods are satisfied, you will have access to the money.
Potential Delays in the Settlement Check Process
In personal injury cases, any errors in the paperwork relating to the settlement check process may result in delays receiving the settlement check. There may be clerical mistakes or a dispute regarding the terms of the settlement. In situations with errors during the settlement process, it helps to have an experienced personal injury lawyer to handle issues immediately.
An experienced personal injury attorney will always keep you updated on your settlement money and when you can expect to receive it. Should any delays or issues arise with your settlement check, your personal injury attorney will be able to intervene and work to get it to you as quickly as possible.
What to Do If You Need Money While Awaiting Your Settlement Check
When you’re still waiting for your money, it can create a desperate situation. Whether the settlement check is held up due to a clerical error, a problem with the mail, or some other reason, it may be prudent to consider pre-settlement funding.
Sometimes referred to as car accident loans or personal injury loans, pre-settlement funding allows you to have access to your settlement money while you await your settlement check. There are some great benefits to choosing this type of legal funding in a personal injury lawsuit.
No Risk to the Injured Party
When you work with a pre-settlement funding company, they assume the risk. It’s not like a traditional loan where you must pay it back no matter what.
Simple to Obtain
Trying to get a traditional loan from your bank will require you to fill out lengthy applications and have your credit checked. Unfortunately, the people who need pre-settlement funding the most are more likely to be rejected by the bank for a loan. With pre-settlement loans, you are not subject to the same scrutiny.
Use It for What You Need
You can use the settlement check loan money to pay your medical bills, make up for lost wages, and take care of your unpaid bills on time. It’s a great way to make your financial recovery start to work for you and prevent you from sinking further into debt while awaiting your settlement money.Don’t rush the process of getting legal funding. Instead, you should learn more about how it may be beneficial in your situation. At Pinnacle Legal Funding, you can learn more about us and contact us to learn how we can help you get back on your feet until your settlement check arrives.