When you file a personal injury lawsuit in Minnesota, the compensation you receive can either be through a settlement or a verdict from trial. Most cases settle out of court, which is generally in the best interest of all parties involved. Once a settlement is reached, the responsible parties, typically an insurance company, will issue a check. Your attorney will ensure that the funds are protected and distributed according to the law.
The Personal Injury Payout Process
The Settlement Agreement
Once you and the insurance company agree on a settlement, the insurance company will ask you to sign several documents. These documents may include confidentiality agreements and a release of the defendant from any further liability related to the accident.
Step 2: The Insurance Check
After signing the required documents, the insurance company will issue a check for the settlement amount. The check is typically made payable to both you and your attorney. The check will then be sent to your attorney, who will endorse and deposit it.
Step 3: Distribution of Proceeds
Before distributing your settlement funds, your attorney will pay any medical liens or debts tied to your lawsuit. This may include payments to healthcare providers, Medicaid, Medicare, or insurers. The attorney will also deduct legal fees and then distribute the remaining amount to you.
How Long Will It Take to Receive My Settlement?
The typical timeframe for receiving your settlement is four to six weeks, though this can vary. Some insurance companies may delay payment, but your attorney will hold them accountable for prompt payment. In some cases, insurance companies may owe interest if they delay your settlement.
Factors Affecting Settlement Payment Time
Delays can happen if your attorney needs to settle medical liens, particularly with government insurance programs like Medicare or Medicaid. Your attorney must confirm the amounts owed and ensure all obligations are satisfied before distributing your settlement.
What Happens When the Liable Party Is Not an Insurance Company?
In some cases, the responsible party for your injury may not be an insurance company. This can happen if you receive punitive damages or if your damages exceed the policy limits. If the liable party doesn’t pay promptly, legal measures can be taken.
Collection Measures for Unpaid Settlements
If the defendant fails to pay, you may be able to petition for wage garnishments, bank levies, property seizures, or lien enforcement. These measures can delay the receipt of your proceeds by several months, and if the damages remain uncollected, a motion can be filed to reallocate the uncollected portion to other parties.
Need Help With Your Personal Injury Claim?
At Sieben Polk P.A., our Minnesota personal injury lawyers provide tailored legal services to meet your unique needs. We combine the personalized approach of a small firm with the resources of a larger law practice, ensuring you receive the most effective representation possible.
Free Initial Consultation
You can rely on us to fight for the compensation you deserve and ensure that your settlement proceeds are collected as quickly as possible. Call us at (651) 437-3148 or contact us online to schedule your no-obligation consultation
