UNDERSTANDING THE SETTLEMENT PROCESS:
A TIMELINE FROM ACCEPTANCE TO CHECK IN HAND
At The Mines Law Firm, we understand that after reaching a settlement in your case, you’re eager to receive your portion of the settlement funds. It’s crucial to be aware that this process involves several stages and can be time-consuming. This is a reason we consistently let you know that settlement money should be considered an addition to any income or money you already have, but not funds that are guaranteed, especially by a certain date. In other words, enjoy it when you get it, but it’s important for numerous reasons to not rely on it. Many things are beyond our control.
Here’s a breakdown to help you understand the timeline and steps involved:
1. Accepting the Settlement Offer
Once the client agrees and accepts a settlement offer, the process to receive the funds begins.
2. Signing the Insurance Release
Before any payment can be issued, the injured party needs to sign a release, ensuring they won’t file any future claims regarding the same injury against the at-fault party or insurance company. First the insurance company has to prepare it, and send it. Sometimes, they need various approvals at their own company. Those approvals also can cause delay. This is beyond The Mines Law Firm’s control.
Example: Jane Doe had a car accident and after negotiations, agreed to a $5,000 settlement. Before receiving her funds, she needs to sign a release, stating she won’t sue the at-fault driver or their insurance company regarding this accident in the future.
3. Negotiating Medical Liens
Often, healthcare providers, health insurance companies, and/or the state of California claim a portion of the patient’s settlement for medical bills. Before disbursing the settlement funds, these liens need to be negotiated to ensure all bills are accounted for. We work very hard to get these liens negotiated down on your behalf, and as a courtesy. We do this so you have more money in your pocket at the end of the process. Sometimes, they need various approvals at their own companies. Those approvals also can cause delay. This is beyond The Mines Law Firm’s control.
4. Signing the Law Firm's Disbursement Sheet
This document provides a detailed account of the funds, including law firms fees, the administrative costs, and any deductions, such as medical liens, or prior loans the client has taken out. The client needs to review and sign this before any money can be distributed to the client.
5. Waiting on the Insurance Company
After all paperwork is finalized, the insurance company can take up to 45 days to send the settlement check. We say this as an average. Sometimes, due to unforeseen circumstances, it can even take longer. This is beyond The Mines Law Firm’s control.
6. Receiving and Depositing the Check
Once the law firm receives the check, it is deposited into a special attorney trust account, as mandated by California law.
7. Bank Clearance
Banks typically place a hold on deposits. This is a standard procedure to ensure the funds are verified. It can take several days, sometimes even longer, for the funds to clear. The bank determines the period, not us. This is beyond The Mines Law Firm’s control.
8. Sending the Client's Portion
After the funds clear, the law firm can then issue the client’s portion of the settlement, through a mailed check. It is your responsibility to ensure we have your current address at this time especially. It is your responsibility to make sure you verified this address before providing it to us. The check cannot be picked up. The check cannot be sent by an electronic method. We must follow our standardized process for tracking and logging purposes.
9. Receiving and Depositing the Check
Once the client receives the check, it can be deposited into the client’s bank.
10. Bank Clearance
Banks typically place a hold on your deposits, too. This is a standard procedure to ensure the funds are verified. It can take several days, sometimes even longer, for the funds to clear. The bank determines the period, not us. This is beyond The Mines Law Firm’s control.
POTENTIAL DELAYS
Post Office Issues: Sometimes, mail can be delayed or misplaced.
Bank Holds: Depending on the bank, some holds can extend beyond the usual clearance time.
Additional Negotiations: If there are disputes regarding medical liens or other deductions, it might add time to the process.
