Most personal injury claims are settled out of court without going to trial. Upon the resolution of the claim, the insurance company will send a settlement check to your lawyer. Your lawyer may hold the check for some period of time until the check clears, liens are paid, and other criteria are met.
Learning more about how long a personal Injury lawyer in Dallas, TX can hold your settlement check is a crucial part of understanding the overall settlement timeline.
The Basics of Personal Injury Settlement Checks in Texas
Most accident victims are waiting for their settlement check. This is because they have outstanding bills, such as medical expenses and other obligations. Personal injury settlements usually include compensation for both economic damages and non-economic damages.
Here are some important things you need to know about personal injury settlement checks and the final disbursement process in Texas.
No Formal Legal Deadline
First, you should know that Texas does not have a statutory deadline for lawyers to disburse your settlement. According to the Texas State Bar, disbursements must be made within a reasonable time.
In most cases, settlement funds are disbursed to clients within 30 days. However, in some complex cases, this timeline may be longer.
Insurance Company’s Issuance of Settlement Check
Once a settlement has been reached, the insurance company has some obligations. In most cases, the insurance company is required to issue your settlement check within 5 business days of settlement. After the insurance company issues your check, the process is not done. It can still take two weeks or more before the final disbursement of funds from your lawyer is completed.
Bank Holds
Once your lawyer receives the settlement check from the insurance company, they will deposit it into their trust account or escrow account. The bank will typically place a hold on these funds until the check clears. Bank holds usually range from 3 to 14 days, depending on the size of the check.
Larger checks are often subject to longer holds because they present a larger risk for the bank. It is important to understand that bank holds are outside your attorney’s control, and your lawyer cannot reduce the delay caused by a bank hold.
Payment of Liens and Expenses
Once the check has cleared and the funds are ready to be disbursed, the attorney must pay all the case expenses and liens first. There are several types of expenses that might be deducted from the settlement check prior to you receiving your funds.
These expenses can include:
- Legal fees: Since personal injury lawyers use contingency fees, the lawyer’s fee will be deducted from the settlement. Their fee is calculated based on the total amount of the settlement, and any disagreements or disputes about the legal fee can delay your payment.
- Medical liens: Some medical providers agree to provide services without an upfront payment while your case is pending. In exchange, they put a medical lien on your claim. Your lawyer has a duty to handle all these expenses, and your medical providers must be paid from your settlement proceeds.
- Case expenses: Personal injury lawyers usually incur several types of case expenses in the litigation of a personal injury claim. This may include expenses for medical records, copies, court costs, depositions, expert witnesses, and other items. Your fee agreement should detail how these expenses will be paid, but they are usually subtracted from the final settlement before disbursement.
- Subrogation claims: When your insurance company pays for your medical treatment, they may have a right to recover any money they have paid. This means they might receive part of your settlement before you get paid. Your lawyer can often help negotiate the value of any subrogation claims so that you get more money in your pocket.
In many cases, your attorney may go ahead and calculate the amount of these items as soon as a settlement is reached. This way, they will be ready to make payments and disburse funds as soon as the settlement check clears the bank. If complex negotiations are required for medical liens or subrogation expenses, there could be a delay in the final disbursement of your net settlement proceeds.
Court Approval
In some cases, court approval of settlements is required. This is common in cases involving minors. After a settlement is reached, your lawyer will ask the court for their approval. The approval process can sometimes take weeks because a court hearing and a court order are typically required.
Once the settlement is approved by the court, the insurance company can issue the check and begin the final disbursement process.
What If My Lawyer Is Holding My Check Too Long?
If you believe your lawyer is holding your settlement check too long, you should ask your lawyer about the delay. They should be able to give you a detailed breakdown of the process and tell you exactly what is causing the delay.
When delays are unreasonable, you can always contact the Texas State Bar to file a complaint or get additional assistance. The Bar has specific rules that attorneys must follow, and open communication between you and your lawyer should always be allowed.
Call the Experienced Dallas Personal Injury Lawyers at Benton Accident & Injury Lawyers Today for a Free Consultation
If you have been hurt in an accident, contact the team at Benton Accident & Injury Lawyers for help. Our experienced team can help you pursue maximum compensation for your claim. We can guide you through every step of the process and help you understand your options.
Contact us today at (214) 556-8321 to schedule a free consultation with a Dallas personal injury attorney to learn more and get started.
