How Are Car Accident Settlement Checks Processed?

Auto Accident Lawyer

If you have been awarded a settlement for a car accident, you may have a few questions when it comes to receiving the funds. For example, how long will it take for you to get your portion of the award? Additionally, how will the check be made out? To sum it all up, what happens next?

Receiving the Check

Generally speaking, it will take a couple of weeks to receive the check from the defendant or the insurance company. It can be faster or slower than this, but you should expect it to take at least two or three weeks for the check to arrive at your lawyer’s office.

How many checks are received and what payees are listed on the check may vary depending on your case and the damages that were awarded. Often, the check will be made out to you and your lawyer. If you were awarded compensation for medical expenses, there may multiple checks. Usually, one check will be made out to the hospital for the medical charges, and the other will be made out to you and your attorney

Depositing the Check 

Once the check has been received, you will need to sign it before it can be deposited by the lawyer into the trust account. Most states require that your lawyer has a trust account with your name on it specifically for the funds from your settlement. These funds are not part of the operating funds for the lawyer and cannot be accessed except to deposit checks and disburse funds related to your case.

After the check is deposited, it should take anywhere from a few days up to a week to clear.

Final Distribution

Once the check has cleared, your attorney will able to make the final distributions. This includes writing checks to their firm for the fees that they’ve charged, writing checks to any third-party who is owed a part of the distribution (such as paying off car loans, etc.), and a check to you for your portion of the distribution amount.

The whole process can vary in terms of length depending on several different factors, such as waiting for Medicare or government payments for example. If you have any questions about how a car accident claim is handled, be sure to talk with an experienced car accident attorney to address your concerns. While processing times will vary, your lawyer, like an auto accident lawyer in Indianapolis, IN, will be able to tell you how long you can expect before you have the funds in your hands.

More info at Car Accident Law Firm Indianapolis.

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