Why Your Compensation Check Might Not Arrive Immediately After Settlement

If pursuing personal injury compensation, you may hope to get and cash the check as soon as you settle the case. However, you might experience some delay between the settlement date and the date you get the check. Below are common reasons for such delays.



A Release Form Dispute

Once you settle your personal injury case, the defendant will want you to release them from further liability relating to the case. You do this by signing a release form. Signing the release form signals that you won't seek further damages or file another lawsuit related to the accident against the defendant. You won't get your money before you sign the release form.

The release looks simple in theory, but insurance companies often complicate it. For example, an insurance company might widen the release form's scope to include other defendants you have not settled with. In such cases, the insurance company will hold your compensation check until you solve the release form disputes.

The Injury Victim is a Minor

Personal injury settlements involving children follow some procedures that adult cases do not necessarily have to follow. For example, a child cannot pursue an injury case alone; they do so via a court-appointed representative or parent. Secondly, the court must sign off on the child's settlement.

Therefore, you should not expect your child's compensation check just because you have settled their injury case. Settlements for minors go through the process so the court can perform due diligence to protect the minor's best interests.

The Settlement Is From Survival Actions Claim

If you lose a loved one in an accident, you can file a wrongful death and a survival action claim. The wrongful death claim compensates you for the losses due to your loved one's demise. State law determines who can file a wrongful death claim.

Survival action claims pay for the damages your loved one suffered before their demise, in case they didn't die instantaneously. Survival actions compensation includes pain and suffering and medical bills between the injury and death.

The survival action compensation goes to your loved one's estate; you don't receive the money directly. Once your loved one's estate receives the funds, the estate's beneficiaries receive the funds just like other estate assets. The process may take some time, so you might see delays before you receive your share of the settlement.

You Have Not Settled the Applicable Liens

Liens are third-party claims on your personal injury settlement. For example, your health insurance carrier may place a lien on your settlement after paying your medical bills.

You must settle these liens before you can cash the rest of the money on the check. However, expensive liens can significantly reduce your settlement. Some lienholders also inflate their dues. Your personal injury lawyer may help you negotiate and lower the lien amounts, but this may take some time.

There Is an Administrative Delay

Lastly, administrative delays can also delay your settlement fund's distribution. For example, the fund may delay if the insurance company responsible for your payment has multiple offices working on the case. Maybe the main office in another state is liaising with a local office.

An administrative delay can also occur if the insurance company switches adjusters before your case settles. That might happen, for example, if the adjuster handling your case falls ill or receives a transfer to another office. Even human error, such as misplaced documents, can delay your case.

Professional injury lawyers anticipate and preempt such delays. An experienced lawyer can also help you deal with the delays and get your money within a reasonable timeline. Frank Penney Injury Lawyers has practiced injury law for over 25 years. Contact us for a consultation to determine how to get your compensation.