Plaintiffs feel an unmeasurable sense of relief and joy when a drawn out personal injury case ends in a decision in their favor. The first question that most have is, when will I get paid? In the state of Tennessee there are many factors that determine the answer to this question. Some delays happen before your attorney gets the settlement check and some happen after. A few of the delays can be avoided, and there are some that are just part of the process.
Getting Paid from the Insurer
The first impediment to payment is the insurance company. The defendant’s insurance company will need time to issue the check. They must do so within the time frame set out by Tennessee law.
Insurance companies require a release in connection with the settlement process. Therefore, when it becomes clear that a case is reaching a settlement, a deadline to deliver the acceptable release should be included in the settlement agreement. At times, an insurer may offer to expedite the check as a way of making the settlement more attractive to the plaintiff. Thinking ahead and planning for the release by the insurance company prior to settling the case can save unnecessary delays afterwards.
Delays after the Attorney Gets the Check
Once the check from the insurer makes it to your attorney, there are still some unavoidable delays in the payment process. First, by law your attorney must deposit the check into a trust account before they can pay you. Then, the check must clear. Your attorney is as eager to have your check clear as you are since they don’t get paid until it does.
Settlement checks usually take about 10 business days to clear most trust accounts. The one exception would be if the check was issued by the same bank where the attorney has their trust account. As the money sits in a trust account, it accumulates interest. This interest is used to provide legal assistance to the poor. Your attorney does not get this money.
Another delay comes from the fact that your attorney is required to pay your medical and insurance liens prior to paying you. Doctors, insurers, and other medical providers who played a role in treating you after your accident may delay in sending a balance due statement. Medicare has the reputation of being slow when delivering these balance statements.
It could be that your attorney is attempting to negotiate some of these liens and bills with the goal of getting you more money. Negotiation is especially needed if the bills exceed the portion of the settlement you are due. All of these negotiations with lien holders must be settled before you receive compensation. However, if it is clear that your medical bills are drastically less than your portion of the settlement, you may want to request a partial distribution from your attorney once the check clears.
These are a few of the more common delays in receiving payment after settlement. In workers compensation cases, a judge may delay in approving payment, a defendant’s check may not clear, and other unusual circumstances may arise. You can be assured that your attorney is doing all in their power to see to it that you get the compensation due as soon as possible.
