What Happens After a Settlement in a Personal Injury Case?

At Morain & Buckelew, LLC in Atlanta, Georgia, we recognize the complexities of understanding the settlement process in a personal injury case. We are here to simplify the steps for you. Let’s walk through what happens after you’ve settled your personal injury case.

Receiving and Depositing the Settlement Check

When a personal injury case is settled, the insurance company issues a settlement check, typically payable to the client and the attorney. This is crucial in finalizing the compensation process for your injuries and losses. Here’s a clear breakdown of what happens next:

  • Receiving the Check: Upon successful settlement, we accept the check from the insurance company on your behalf. This check represents the agreed-upon amount to cover all your damages and injuries, ensuring that the compensation reflects the severity of your situation and the negotiations agreed upon.
  • Confirming Details: Before depositing the check, we ensure that all the details are correct, such as the amount, the payee information, and any other pertinent details that could affect the processing of your settlement.
  • Depositing the Check: Upon receipt and verification of the details, we deposit the check into a client trust account. This is a highly regulated account where client funds are kept separate from the firm’s operational funds, providing several safeguards:
    • Security: Funds in the trust account are protected from any of the firm’s financial liabilities.
    • Compliance: These accounts are subject to strict state laws and regulations, ensuring proper handling and transparency.
    • Accessibility: If applicable, keeping the funds in a trust account makes it easier to manage and disburse them accurately and efficiently to clients and any other parties, like healthcare providers or lien holders.

Clearance and Disbursement

Once the check is deposited, the bank typically takes one to two days to clear it. This clearance period can vary slightly depending on the bank’s policies and the check size, as more significant amounts may require additional verification processes. Here’s what happens after the check clears:

  • Disbursement: We aim to issue your portion of the settlement as quickly as possible. We understand that many of our clients face financial pressures due to their injuries and need these funds to manage medical bills, living expenses, and other costs. Therefore, we work diligently to ensure that:
    • Efficient Processing: As soon as the bank confirms the funds are available, we begin allocating and disbursing the amounts due.
    • Distribution to Relevant Parties: If other parties, such as healthcare providers or lienholders, are entitled to a portion of the settlement, we distribute it to them directly from the trust account.
    • Direct Payment to You: The final step is issuing a check or arranging a direct deposit to you, the client. We aim to have funds in your hands within five days of the check clearing, contingent upon any necessary deductions for outstanding balances or fees.
  • Communication: Throughout this process, we maintain open and clear communication with you. We provide updates on the status of the clearance and disbursement so you are informed at every step.

Allocation of Settlement Funds

Understanding how your settlement is divided is crucial. Here’s how funds are generally allocated:

  • Attorney Fees: At Morain & Buckelew, LLC, our fee is 35% of the settlement amount. This percentage covers all the legal services, from case evaluation to resolution.
  • Medical Bills and Liens: Part of the settlement may go towards paying off any medical bills or liens related to your case. This ensures that all parties that provide services on credit are compensated.
  • Client’s Recovery: After fees and bills are paid, you, the client, receive the remaining amount. This sum helps cover damages and supports your recovery journey.

Financial Planning and Management

Receiving a large sum of money requires careful planning. We often advise our clients to:

  • Consult a Financial Advisor: Managing financial health is as important as physical recovery. A financial advisor can help you plan for your future and ensure your settlement funds are used wisely.
  • Consider Future Needs: Part of your settlement should address future medical expenses or income loss. Allocating funds to cover long-term costs is critical to your recovery process.

We Are Here to Help!

Settling your personal injury case brings a sense of closure, allowing you to focus on your recovery without the stress of ongoing legal battles. Our firm supports you legally and in transitioning to post-settlement life.

Navigating the aftermath of a personal injury and understanding the legal processes involved can be daunting. At Morain & Buckelew, LLC, we commit to guiding you every step of the way. If you have further questions or need assistance with a personal injury matter in Atlanta, Georgia, don’t hesitate to reach out. We are here to help! Contact us today at (404) 448-3146 or online.