Fight for a successful outcome in your personal injury case by hiring a lawyer with the experience to take on big insurers and you’ll soon receive a personal injury settlement check. Whether done through negotiations at the beginning of personal injury claims or the end after a winning verdict in a personal injury lawsuit, the settlement check you receive can help you close the door on this difficult chapter in your life.
When your personal injury case concludes, the result of a settlement agreement will be a settlement check. However, before you cash the settlement check, there are a few things to know. Azizi Law Firm represents injury victims in personal injury cases with an aggressive fight to get full and fair settlements. In this informative article, we provide details on how to cash a settlement check, what you should know about the different methods of obtaining your compensation, and how your attorney is your best ally in this process.
What to Know Before You Get Your Personal Injury Settlement Check
Your lawyer may have excellent news, letting you know that you have won your personal injury case. You may have been waiting for this financial assistance for a long time, but now, there will be a slightly longer wait. Why? There are several steps that must be completed first:
Signing a Release Form
When your personal injury case results in negotiations that both parties can agree on, you will need to sign a release form, which will then be sent to the insurance company to start the settlement check process. A signed release form ensures that the defendant will not face any further legal claims regarding this specific incident.
Issuing the Settlement Check
Next, the insurer must issue the settlement check once the paperwork has been completed. Often, this may be the point where things get delayed as insurance companies might make clerical errors on settlement checks, or the adjuster responsible for handling your claim may be out of the office.
Your Attorney Deposits the Settlement Check
When the check arrives, your personal injury attorney will deposit the settlement money into an escrow or trust account. It may be in this stage for up to seven days while the funds clear. Keep in mind that this week-long wait applies to business days only.
Paying Your Debts
After the funds for your settlement check clear, your attorney will negotiate with your lien holders to pay off the debts you owe. This may include child support, reimbursing your health insurance for healthcare bills, and paying off your outstanding medical bills. Your legal fees and court filing fees will also be deducted from the amount you have received, then the rest will be yours.
Since the added wait can make it difficult to pay for your living expenses in the interim, you may consider pre-settlement funding through a lawsuit loan. However, pre-settlement funding may not be right in every scenario. If you are curious about whether a lawsuit loan may be a viable option in your situation, it is best to discuss your options with an attorney.
How to Cash a Settlement Check
Now that you know more about the process, you’ll naturally ask, “Where do I cash my settlement check?” so you can learn about settlement check cashing options. This can be accomplished at the issuing bank, your own bank or credit union if you have a bank account, check cashing stores, or at retail or grocery stores.
Cash a Settlement Check at Your Bank
If you have a bank account, this will be one of the easiest methods to cash a settlement check. Some banks charge fees for these services, but for most people with a bank account at the same institution, these fees may be waived.
Go to the Issuing Bank
If you don’t have an account, the next best option is to go to the issuing bank. Issuing bank cashing will require following that bank’s policies for large checks. Along with your settlement check, you will need to have at least two forms of identification like your passport and driver’s license. You may also need to pay a flat fee for cashing your settlement check at the issuing institution.
Use a Check Cashing Store
A check cashing store is the next place to try when you need to cash checks and are unable to use banks or credit unions. You can get immediate cash, though the fees are usually quite high at check cashing businesses.
Use Convenience Stores for the Check Cashing Process
Grocery stores and convenience stores may also be able to help you get your money immediately. You will need to provide two forms of valid identification and be prepared for fees. However, before you use this approach, make sure that the settlement amount is below their threshold. Some of them will not provide this service for checks over $5,000.
Common Issues that May Arise When Cashing a Personal Injury Settlement Check
After a car accident or another type of accident that left you injured as a result of the negligence of an at-fault party, it may feel like you can finally see the light at the end of the tunnel. Before you can put this event behind you, you should be aware of common problems that may come up as you try to cash your check.
It is very common for banks to hold funds in these circumstances, usually for two business days, though possibly longer. Banks need to validate the check’s legitimacy and rule out potential fraud. These security measures are to protect you and the banking institution, though you’ll experience shorter holds by going to your bank or the bank that issued the check.
It’s not always possible, as many victims in personal injury accidents are strapped for cash due to medical bills. This is why payday loans or lawsuit loans are available, but again, they might not be the ideal option for you. These can also come with fees since you can access the funds immediately.
If your settlement offer is in the form of structured settlements, you may be able to arrange a direct deposit that will simplify the process for your future payments. A structured settlement is when you get payouts for a specified period while a lump sum means you get all the money at once. The larger the check, the more scrutiny it will undergo to ensure it is valid and that the funds are cleared.
How Can I Spend the Money from My Settlement Check?
Once your settlement check is available for use, you can spend it on anything. Most people will spend it on their everyday expenses or to make up for their lost income while they are out of work. You generally won’t need to pay any balances out of your pocket for your medical costs as this will have been arranged by your attorney.
Do You Need a Personal Injury Lawyer to Get a Settlement Check?
There are no mandatory requirements that you must have an attorney represent you for your lawsuit. However, if you are considering pre-settlement funding or a lawsuit loan to tide you over until you receive your settlement, most legal funding companies will not proceed if you do not have legal representation.
Even if you’re not interested in pre-settlement funding, a personal injury attorney is the powerful advocate you need for standing up to the other party, their insurer, and their defense team to get the money you deserve. A personal injury lawyer in Los Angeles can start investigating your accident and negotiating with insurers. They will gather evidence that you may not have been able to retrieve due to your serious injuries and call in experts who can recreate the accident scene and testify to the extent and severity of your injuries.
There are several other tasks that must occur during the legal process. Filing the paperwork and filing it within the statute of limitations are crucial factors that must be satisfied. In California, you only have two years from the date of your accident, making it absolutely critical to take action before it is too late.
When you have an attorney on the case, it reduces your stress, allowing you to get the rest and recovery you need for your best healing potential. Your lawyer will know every step to take to stand up to the defendant and the laws and legal precedents that may apply in your case.
Another reason to hire an attorney is to have a smoother process for recovering your settlement. If it becomes unreasonably delayed, they will look into the issue and have it resolved. Ultimately, the lawyer you choose is the most important choice you’ll make since you want someone who upholds your best interests while being aggressive as they advocate for the best possible outcome in your situation.
Azizi Law Firm fights for the everyday people of Los Angeles to help them see better days. If you or a loved one have been seriously injured in an accident, contact us today to schedule a free consultation and start your fight for your fair compensation.
