When you file a personal injury lawsuit in Minnesota, you may recover compensation through an out-of-court settlement or a verdict at the conclusion of a trial. Most claims are resolved through settlements, which generally serve the best interests of all parties. Once a settlement is reached, the responsible parties—usually an insurance company—write you a check. Your attorney is responsible for safeguarding and distributing the proceeds according to the law.
The Personal Injury Payout Process
Winning a settlement in a personal injury lawsuit is an important milestone in your case, but receiving your proceeds will still require a process. We are dedicated to helping our clients recover the best possible case results and distributing their compensation as soon as possible.
Step 1: The Settlement Agreement
Once you and the insurance company agree to a settlement, the company will require you to sign numerous documents as a condition of accepting the settlement. These documents are meant to protect the insurance company and the at-fault party. They may include an agreement to keep the settlement amount confidential, and they will virtually always release the defendant from further liability in connection with the accident.
Step 2: The Insurance Check
After you sign the required documents, the insurance company will write a check for the amount agreed to in the settlement. The company may make the check payable to you and your attorney.
The check will be mailed to your attorney to be endorsed and deposited. Your attorney is legally required to protect these funds on your behalf. They can suffer serious legal and professional consequences for misappropriation.
Step 3: Distribution of Proceeds
Before you receive settlement proceeds, your attorney will normally satisfy medical liens and other debts attached to your lawsuit. For example, they may pay off your health care providers, Medicaid, Medicare, and insurers. Your attorney will also deduct their legal fees. Finally, they will distribute the remaining funds to you.
How Long Will It Take to Receive My Settlement?
The average timeframe to receive a settlement is four to six weeks, but this can vary. Some insurance companies may attempt to delay your payout for as long as possible. Our attorneys will hold them accountable for paying your settlement promptly. In some cases, an insurance company could owe interest on your settlement if it holds up your payment for too long.
Your attorney usually cannot distribute your proceeds without satisfying medical liens. If you owe medical reimbursements to government insurance programs, such as Medicare or Medicaid, your attorney may have to wade through some red tape to determine the amount you owe and confirm that the lien is satisfied.
Our lawyers understand how important it is to receive your settlement promptly. With decades of combined experience, our skilled legal team knows how to navigate the law to help you receive your proceeds as soon as possible.
What Happens When the Liable Party Is Not an Insurance Company?
In some cases, an individual or business other than an insurance company may be responsible for paying all or part of a settlement. For instance, this may occur if you are awarded punitive damages or your damages exceed the insurance coverage limits.
If the liable party fails to pay in a timely manner, we will take legal measures to ensure you receive your compensation. If necessary, you can petition for wage garnishments, bank levies, property seizures, or lien enforcement.
If these collection measures become necessary, they could delay the receipt of your proceeds by several months. A defendant’s share of uncollected damages may also be reallocated to other parties in the lawsuit if a motion is filed within one year.
Need Help With Your Personal Injury Claim? We Can Help.
Our Minnesota personal injury lawyers at Sieben Polk tailor our legal services to the unique needs of each client. As a nationally recognized law firm with deep local roots, we combine the personalized approach of a small practice with the resources of a large operation, ensuring you get the most effective representation available.
You can count on us to fight for the compensation you deserve and to collect your proceeds as quickly as possible. Your initial consultation is free, and you pay nothing unless we obtain compensation through your claim. Call (651) 437-3148 or contact us online to schedule your no-obligation case review.
