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
- Reaching a settlement involves work. Parties investigate, negotiate, file insurance claims, and conduct medical evaluations.
- Settlements take time. The process may span a year or more.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.