When to Expect Your Personal Injury Settlement

Personal injury can change your otherwise normal life. As a victim, you may find yourself unable to engage in activities you previously found mundane—driving the kids to school. As such, no one will fault you for wanting to close this traumatic chapter and move on with your life. However, the nuances and complexities of this field of law can frustrate you for many reasons. 

More importantly, many victims wonder why the settlement is first directed to their attorney, and rightfully so, since it’s their money intended to compensate for damages they have unfairly suffered. 

This blog will expand on this subject, showing why insurance companies do this and when the money is sent to the plaintiff. See below:

How Personal Injury Settlement Works

“After initiating a personal injury claim, proving your case and winning compensation, it may take a while for the funds to reach your bank account because the insurance company will first direct the funds to your attorney,” says personal injury attorney Michael Ponce of Ponce Law Tennessee Car & Truck Injury Attorneys.

Understandably, this may cause some uneasiness on your part. You may wonder whether the lawyer will disappear with your settlement. 

However, you should find comfort in knowing that attorneys are bound by strict ethical and fiduciary duties. If they were to misuse their client’s money in any way, the ramifications would be severe, ranging from hefty fines to lengthy jail time. 

On top of that, the involved adjudicators will direct the funds to a secure escrow account, not the attorney’s personal accounts. In doing so, your lawyer becomes your restitution’s custodian, tasked with doing the following:

• Settling any debts- Look at it this way: if your health insurer paid for your treatment, they are entitled to a portion of your settlement money. Consequently, your attorney will start by paying such entities. 
• Deduct their legal fees and case expenses- If you had agreed on a contingency payment plan, your attorney would deduct their payment and recoup money spent on legal expenses.
• Once everyone has been paid, your lawyer will send the funds to your account.

Most of the time, this process will only take a couple of weeks. However, the cheque may sometimes be delayed for reasons such as the ones listed below:

• Improperly signed forms 
• When your attorney believes that specific claims are unjustified 
• When the bank is taking a long time to clear the cheque

There’s no need to be too worried. Your attorney will likely keep you in the loop on when you should expect the money to reflect in your bank account. 

Conclusion

So, you see, your attorney cannot “take” your settlement money. The only reason the funds are directed to their accounts in the first place is to pay individuals and entities with rights to it. 

On top of that, personal injury lawyers are bound by stringent ethical and fiduciary diary obligations. The consequences of misusing your money include reputation damage, hefty fines, and serving time behind bars. 

In brief, you can trust your attorney’s judgment and guidance to ensure timely compensation for your damages after all debts have been cleared.