If you have pursued a claim for personal injury and a settlement has been reached, you may be wondering how the settlement is paid out.

How and when will you receive the money you are due for damages?

Steps in the Payout Process

If the defendant has settled before a lawsuit is filed, your attorney will receive a check and then make sure you receive the money. The majority of personal injury claims are settled out of court. Usually, legal fees and costs are contingent upon winning a settlement, so an amount of up to 50% can be deducted by your lawyer from the settlement.

If a settlement is reached after a lawsuit has been filed, the payout is a bit more complicated. After your attorney officially reports the settlement to the court, the court completes an order of settlement. This means that both parties must finish all settlement paperwork within a specified time of up to 60 days.

The paperwork includes a document known as the Release, which is prepared by the defense lawyer and sets forth the terms of the case. The plaintiff’s attorney then reviews it. Once all terms are agreeable, it will be sent you to sign. It needs to be countersigned and returned to the lawyers before it is official.

In many states, personal injury liens can be placed on a settlement. A lien means that the lienholder has a right to your assets. The holder of the lien generally needs to be paid out of the settlement before funds can be disbursed to you. A doctor or hospital, for example, may place a medical lien on your suit if you have significant outstanding medical bills stemming from the injury. If you owe Medicare, Medicaid, or other governmental services, a governmental lien can also be placed on the settlement.

Cases Can Be Appealed

Bear in mind that court verdicts can be appealed by either side. If an appeal takes place, any verdict award will not be paid out until the appeal process is complete. Appeals can be lengthy, and an appeal that loses can be appealed again.

If You Need Funds Now

You can see that the actual payout of funds may take a long time. If you have been injured, you may have difficulty paying bills for medical care. If your injury rendered you unable to work, you could face rising bills from almost every area of life: rent or mortgage, food, utilities, and more. What happens then?

A Legal Loan Can Help

It is possible to obtain a loan to tide you over while your case is pending. Legal loans are nonrecourse, which means they are more like cash advances than standard bank loans. If your case is successful, you will need to pay the legal loan back, at a reasonable rate of interest.

If your case is decided in favor of the defendant, though, you don’t owe anything on your legal loan. That’s right, zero.

You can use a legal loan for any necessity you have, including groceries, mortgage/rent, utilities, medical bills, and ongoing health insurance.

The application process is simple and convenient. There is no credit check required. The funds can be yours in 24 hours. Our legal loans have the lowest interest rates available.

Legal loans should be considered a bridge to a future settlement.

Lawstreet Capital can help with a legal loan to help you financially until the payout of your settlement. t