How Are Personal Injury Settlements Paid Out?
Personal injury settlements are paid out in accordance with the North Carolina statutory requirements regarding personal injury liens, together with the Federal rules surrounding ERISA and Medicare liens. Our goal is to put as much money in our client’s pockets as possible. In doing so, we have to abide by the rules which govern your personal injury settlement proceeds.
Personal Injury Settlement Checks
Once we reach a settlement with your approval, the insurance company will issue a check made out to you and The Layton Law Firm, PLLC. This check will be deposited into our trust account. The funds will remain in our trust account until they clear, and until you sign a personal injury settlement statement. By signing the settlement statement, you are indicating that you are in agreement with the proposed distribution of funds. This allows your personal injury attorney to disburse the funds with confidence.
Personal Injury Settlement Statements
When you settle your personal injury claim, you will sign off on a personal injury settlement statement. This statement will show all incoming funds related to your injury as credits, with corresponding debits shown as items going to third parties including your attorney fee, health insurance lien payments, medical provider lien payments, and any other items which need to be paid as part of the settlement. The bottom figure will of course be a line item showing you how much you are receiving as part of the settlement.
Limits On Payments To Lien Holders
Fortunately, there is a limit on the amount of your personal injury settlement that needs to be paid out to lien holders and other medical providers. The statutory language in N.C.G.S. 44-49 and 44-50 dictates whether or not a medical provider has a lien. It also limits those providers with liens to a certain percentage of your settlement. Your personal injury attorney will apply this rule of law to the facts of your particular personal injury settlement, and disburse accordingly.
It is important to understand that you will have a choice when reaching a settlement. You can decide whether to pay the statutory minimum to lien holders under N.C.G.S. 44-49 and 44-50, which may leave some billing left over for you to address after settlement. In the alternative, you can work with your personal injury lawyer to negotiate the billing and reach a final settlement on those bills. Our office will make sure you understand the options and work with you to make a choice that is best suited to you.
Receiving Your Personal Injury Settlement Check
Once you sign off on your personal injury settlement statement, your attorney can issue a check to you on the same day. Because you must sign off on the statement in person, most checks are delivered simultaneously. The funds should clear your account as soon as they are deposited, as NC attorney trust account funds are considered to be certified funds and treated as such by banking institutions. If you need your funds wired directly into your account, we can assist with wiring the funds. This will save you a trip to the bank and in special situations makes sense to do.
If you would like to speak with an attorney about your personal injury case, we’re here to help. The call is free and you will come away with a much better understanding of your options. You can reach us at 704.749.7747 or click to request a FREE CASE EVALUATION, and we will be in touch shortly.
Further Reading
If this article about “How are personal injury settlements paid out?” was helpful, you may find other helpful articles on our Personal Injury Blog. Thank you for visiting the website—we hope it has been helpful.