How Are Settlements Paid Out?

How Are Settlements Paid Out

When you file a personal injury lawsuit, you travel a long legal road to settlement.

You hire attorneys, give depositions, and collect medical records. You wait while the lawsuit drags on. You worry about your dwindling bank account.

You can avoid some of that financial stress with a settlement advance. You can’t hurry the legal process along, but you can tap into your settlement before your case closes.

In this process, you borrow from your damage awards and pay back the lender once your case settles.

To obtain a settlement advance, apply with a legal cash advance lender. The lender discusses your case with your attorneys and determines whether you qualify for a legal cash advance. If the lender approves you for a settlement advance, you get cash in 24 hours. You pay nothing back until you receive your settlement.

You should know a few things about settlements before taking a settlement advance. How are settlements paid out? What steps does the process involve?

Here’s what you need to know.

9 Steps to Settlement

  1. Reaching a settlement involves work. Parties investigate, negotiate, file insurance claims, and conduct medical evaluations.
  2. Settlements take time. The process may span a year or more.
  3. You sign stacks of paperwork. When negotiations end, you sign the Order of Settlement. You also sign a release, promising the defendant that you won’t file a future lawsuit on your injury.
  4. Terms and conditions are important. Your attorney reviews all documents before submitting them. If your attorney disagrees with terms and conditions, he or she negotiates with the defendant’s attorney.
  5. A judge steps in to resolve disputes. If the attorneys cannot reach an agreement on settlement terms and conditions, they go to a judge. This judicial involvement delays the settlement process.
  6. The insurance company cuts the check. The defendant’s insurance company pays you after they receive the Order of Settlement and release. The insurance company should issue your check promptly, but they sometimes delay.
  7. Your attorney holds onto the check. The insurance company makes the check payable to you and your attorney and sends the money to your attorney’s office. Your attorney deposits the check-in an escrow account, while it clears.
  8. Debts have first dibs. You pay any outstanding liens, such as medical bills, child support, or attorney fees. Your attorney takes the amount outlined in your contingency fee agreement.
  9. You finally get your cash. Your attorney sends you a check with the remaining settlement award.

So, to answer that question, “How are settlements paid out?” It takes time and work.

You may feel discouraged reading about such a lengthy settlement process. But know that a big check waits at the end of that ordeal.

Apply for a 24 Hour Settlement Advance

If you need cash while you wait on your settlement, we can help. We offer a settlement advance with 24-hour cash approval.

Contact us by filling out our online form or calling us at (800) 760-0704. If you qualify for a lawsuit cash advance, we’ll send you cash within 24 hours!

How To Pick The Best Lawsuit Loan Company For You

| Read Time: 7 minutes

Need cash while you wait for your case to settle? If yoou search the web to find the best lawsuit loan company. What do you find? A bunch of companies claiming that they're the best. Here are tips to find the best lawsuit funding company for you. The fact is, most of these companies are basically the same. They...

Read More

5 of The Best Lawsuit Loan Companies in Florida

| Read Time: 5 minutes

Searching for a lawsuit funding company in Florida? Ally Lawsuit Loans has compiled a list of five highly rated lawsuit loan companies in the state of Florida. If you are looking for a pre-settlement loan company, it may be important to work with one that is within your state.  These are Florida-based lawsuit loan companies with positive reviews from...

Read More

Can My Lawyer Prevent Me from Getting a Pre-Settlement Loan?

| Read Time: 2 minutes

If you’ve been injured due to the negligence of another and are seeking compensation through a personal injury lawsuit, you may be worried about your financial situation. The entire process could take well over a year. And if your case goes to court and you receive a decision, it can be even longer before you receive a settlement check....

Read More