Winning a personal injury case is a huge relief, but once the verdict or settlement is finalized, many accident victims ask the same question: When will I get my money?

While receiving compensation is a step-by-step process, most plaintiffs receive their settlement money within a few weeks to a couple of months after an agreement is reached. However, the timeline depends on the legal procedures, outstanding liens, and potential delays.

If you’ve won your case, our Huntsville car accident lawyers can guide you on what to expect and help expedite the settlement process so you receive your funds as quickly as possible.

What Happens After Winning a Personal Injury Case?

Once you settle your claim, the payout process begins. Below is a breakdown of the timelines, from finalizing the settlement to receiving the funds in your bank account:

  1. Finalizing the Settlement Agreement

Once both parties agree on a settlement amount, the defendant’s insurance company or legal team prepares a formal settlement agreement. This document details the payout terms and requires all parties’ signatures before payment.

In Alabama, insurance companies must release the funds within 30 days of signing. If the case went to trial and resulted in a verdict, the defendant may have the option to appeal, which can delay the payout.

  1. Your Attorney Receives the Settlement Check

After signing the agreement, the insurance company sends a check to your attorney, who deposits it into a trust account. This temporary holding ensures that any outstanding fees and liens you may owe on the settlement can be deducted first, so the funds ultimately released to you will be free and clear.

Processing usually takes a few weeks, depending on how quickly the insurer issues the payment. If the insurer delays payment, your attorney may send a demand letter or file a motion to enforce the settlement.

  1. Liens and Outstanding Debts Are Paid First

Before you receive your settlement, your attorney will deduct any outstanding medical bills, liens, or debts that must be paid from the settlement. These may include:

  • Medical Liens: These are payments owed to hospitals, doctors, or specialists who treated you on a lien basis.
  • Insurance Reimbursements: If your private or employer-sponsored health insurance covered accident-related care, the company may claim a portion of the settlement designated for medical expenses.
  • Medicare/Medicaid Liens: Government programs that paid for any part of your treatment may require repayment.

These reimbursements cover medical and insurance costs, but attorney fees and court expenses must still be deducted before you receive the rest of your settlement.

  1. Attorney Fees and Case Expenses Are Deducted

Before receiving your settlement, your attorney deducts their contingency fee, which covers their legal services and representation. This fee is usually around 33% to 40% of your settlement and is agreed upon before they take your case.

Case-related costs, such as court filing fees, expert witness payments, and administrative expenses, also come from the settlement. Your attorney will review these deductions with you before transferring the remaining funds.

  1. You Receive Your Compensation

Your attorney will send you the remaining balance after deducting all liens, legal fees, and expenses. This final payout can be made via:

  • Direct Deposit: This method is ideal for smaller settlements or one-time payments, with funds deposited directly into a bank account. It eliminates mailing delays and check-cashing fees, offering the fastest and most convenient way to receive your money.
  • Paper Check: A mailed check can take a few days to clear and works well for those without direct deposit or who prefer a physical copy for record-keeping.
  • Structured Payouts: Compensation is distributed in installments, usually monthly or yearly, rather than as a lump sum. This option is ideal for large settlements, providing long-term financial stability and helping to manage tax obligations.

Most clients receive their final settlement payout within 2 to 6 weeks after completing all repayments.

Navigating Delays in Receiving Settlement Funds

While many personal injury settlements go smoothly, certain factors can delay your payout. Below are common reasons for settlement delays and estimated timeframes:

Delay Reason Estimated Timeframe Considerations
Insurance Company Processing Delays 30-45 days or more

 

 ●       Insurers may request additional claim reviews, requiring more documentation before approving the payout.

●       Some companies intentionally drag out the process to avoid quick disbursement.
Disputes Over Legal Terms 1-3 weeks

 

 ●       If any wording in the settlement agreement is contested, negotiations may take additional time before finalizing.

●       Adjustments to structured settlements or payment terms can also cause minor setbacks.
Delays in Issuing or Clearing the Settlement Check 1-2 weeks

 

 ●       Once approved, insurers and banks may take extra time to issue or clear large settlement payments.

●       Some banks hold checks for several business days, especially for high-dollar amounts.
Outstanding Liens and Medical Reimbursements  2-6 weeks, depending on negotiation ●       Your attorney must resolve outstanding obligations before you receive your payout.

●       Negotiating lien reductions can save you thousands of dollars but may take extra time.

●       Medicare/Medicaid repayment can take several weeks to process.
Legal Action Against a Delayed Payout Weeks to months ●       If an insurance company refuses to pay within the agreed timeframe, your attorney may need to file a motion to enforce the settlement.

●       This legal step can add weeks or months to the process but ensures you receive the full amount owed.

How an Attorney Helps Prevent Delays

If your settlement payment is taking longer than expected, your attorney can:

  • Push insurers for timely processing and demand explanations for delays
  • Negotiate with lienholders to speed up repayment and maximize your final payout
  • Expedite fund transfers once the check clears in the trust account
  • Take legal action if necessary, ensuring you aren’t left waiting indefinitely

Our experienced Huntsville car accident lawyers can handle any obstacles that delay your payout and help you receive your compensation as quickly as possible.

Get the Compensation You Deserve Without the Wait

Securing a settlement is a big win, but waiting for your payout can be frustrating. At Tyler Mann Injury Law, we manage the entire process, resolving any challenges that could delay your compensation.

If you’ve been injured in an accident due to someone else’s negligence, contact us for a free, no-obligation consultation.