You can track your settlement check by contacting your attorney and checking on progress. Keep in touch with your lawyer while you are waiting for your settlement, and be sure to respond to their inquiries promptly.
Your attorney is responsible for dispersing your settlement funds, so they are your number one resource for information on your settlement check. However, there are valid reasons your check may take some time to reach you, and it helps to understand the process and be prepared.
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Understanding the Settlement Timeline
Understanding how the settlement process works may help relieve some of your anxiety as you track your settlement check. It takes time and several steps before you’ll see your settlement funds deposited into your account.
The Settlement Agreement
Once you settle with a defendant and their insurance company, you’ll sign a formal settlement agreement and release of liability. From this point, the insurance company has a set amount of time to issue payment, typically around 30 days, though this can vary.
However, the payment will not come directly to you. It will go to your attorney and will be deposited in a special escrow account. This is required for legal reasons, and it is in your best interest.
The Role of the Escrow Account
The escrow account is separate from your attorney’s other finances, and it is required to prevent the possibility of mismanagement of your money. Your lawyer is not legally allowed to access this account for any reason other than managing your settlement.
This also gives time for the bank to clear the funds, which can take between three and 10 business days. During this time, it is important to know that your money is protected, even if you can’t access it.
If you contact your attorney to track your settlement check, they can let you know if and when it has been received.
Deductions and Final Distribution
When you hired your lawyer, you may have entered into a contingency fee agreement. This meant they weren’t going to charge you up front, but you would need to pay costs and fees when they won your case.
Once your settlement has cleared escrow, they can recover their fees and costs. There could also be outstanding debts, such as medical bills, as well. Your attorney may negotiate these payments on your behalf and pay them from your settlement funds.
After all obligations are met and applicable debts are paid, your lawyer will disburse the remaining funds to you. This is your net settlement. You may receive it by check, direct deposit, or whichever method you agree on with your attorney.
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How Long Does It Take to Receive My Settlement Check?
The entire process, from the time you sign your settlement agreement until the moment your funds hit your bank account, often takes between 30 and 60 days. However, it can take much longer in some situations.
Most states have a deadline that dictates how long an insurance company has to send your settlement check. For example, the deadline is 20 days in Florida, as per Florida Statutes § 627.4265.
If you wish to track your settlement check, contact your lawyer and ask for an update. However, remember that they may be involved in a waiting game as well. It is best to be polite and patient, even if you are feeling anxious.
Common Reasons for Settlement Check Delays
While delays are frustrating, if you prepare yourself, you can keep things in perspective. Legally, your money must find its way to you, even if it takes a little longer than you’d hoped. Some common reasons for delays in receiving your settlement check include:
- Slow Payment by the Insurance Company: Even though they have a legally mandated deadline they must meet, an insurance company may use every minute of that time to issue your payment.
- Bank Processing Times: Ideally, once your settlement funds arrive in escrow, they will clear quickly, but the process can take up to ten business days. That can mean two weeks of additional waiting.
- Outstanding Debts: If you have outstanding bills, debts, and liens that your attorney must handle before issuing your net payment, you can expect to wait a little longer to receive your money.
- Attorney Backlog: While it may not sit well with you, if your lawyer’s firm is handling many clients, you might have to wait a bit longer until they can address your settlement.
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Tracking Your Settlement Check
There is nothing mysterious about how to track your settlement check. Legally, insurance companies must issue your payment within a specific period. From there, the money becomes the responsibility of your attorney until their costs as well as your debts are satisfied.
Your attorney is responsible for receiving, managing, and distributing your settlement check, and they are your point of contact. Your lawyer should be able to advise on where you are in the process of receiving your check. Though it seems hard, your most effective tool is patience.
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