The Process of Receiving Your Settlement Check

After months, or even years, of negotiations, medical treatments, and legal wrangling, you finally hear the words you’ve been waiting for from your attorney: “We’ve reached a settlement.” It’s a moment of immense relief. The fight is over, and you have secured the financial compensation you need to move forward with your life.

Now, a new and final question arises: When do I actually get my money? Many people assume that the check arrives in the mail the next day, but the post-settlement process is a formal, multi-step procedure with its own timeline.

Understanding these final steps can help you set realistic expectations and appreciate the crucial administrative and ethical work your attorney does to finalize your case and get your money to you safely and correctly.

Useful Information for You: In a Nutshell

• A Settlement is a Formal Agreement: Once you verbally agree to a settlement amount, the process of finalizing it begins.
• You Must Sign a “Release” Form: The first step is signing a legal document called a “Release of All Claims.” The insurance company will not issue a check until they receive this signed document.
• The Check Goes to Your Lawyer’s Trust Account: The settlement check is sent to your lawyer and deposited into a special, highly regulated bank account called an “IOLTA” or client trust account.
• Liens Must Be Paid First: Before you can be paid, your lawyer has a legal duty to use the settlement funds to pay off any outstanding medical bills and insurance liens.
• You Receive the Net Amount: After the attorney’s fees, case costs, and all liens have been paid from the trust account, your lawyer will issue you a check for the final, net amount.

Step 1: Signing the Settlement and Release Agreement

Once you have verbally agreed to the settlement amount, the at-fault party’s insurance company will draft a formal settlement agreement. The most important part of this packet is the “Release of All Claims” form.

• What it is: As we’ve discussed, this is the legally binding contract in which you agree that this settlement is the final and complete payment for your claim, and you give up your right to any future lawsuits for the accident.
• What happens: Your attorney will meticulously review this document. Once they confirm the language is correct, you will sign it. Your attorney then sends the signed release back to the insurance company.

Step 2: The Insurer Issues the Check

Upon receiving the signed release, the insurance company is legally obligated to issue the settlement check. This can take anywhere from a few days to a few weeks. The check will be made out to both you and your law firm and will be sent directly to your lawyer’s office.

Step 3: Deposit into a Client Trust Account

Your lawyer cannot simply cash the check or deposit it into their business account. Under strict ethical rules in Washington State, they must deposit the full settlement amount into a special, federally insured bank account called an IOLTA (Interest on Lawyer Trust Accounts). This account keeps your money completely separate from the law firm’s operating funds.

Step 4: Paying Liens and Finalizing Costs (The Most Important Step)

This is the most critical and time-consuming part of the post-settlement process. Your lawyer now acts as a fiduciary, responsible for paying all the debts associated with your case from the funds in the trust account. This includes:

• Medical Liens: Paying back your PIP carrier and/or your health insurance company for the medical bills they covered during your case (a process called subrogation). Your attorney will often spend weeks negotiating these lien amounts down to maximize the amount of money you get to keep.
• Case Costs: Paying the invoices for any costs the law firm advanced on your behalf, such as expert witness fees or court filing fees.
• Attorney’s Fees: Calculating and paying the agreed-upon contingency fee to the law firm for their work.

Step 5: The Final Disbursement

Once all the liens, costs, and fees have been paid, the remaining amount is your net settlement. Your lawyer will prepare a final “Settlement Statement” or “Closing Disclosure.” This document is an itemized accounting that shows:

• The gross settlement amount.
• A detailed list of every single deduction (fees, costs, and all lien payments).
• The final, net amount that you will receive.

You will review and sign this document, and your attorney will then issue you a check for your final proceeds from their client trust account. From the time a settlement is reached to the time you receive your check, the process typically takes four to six weeks, largely depending on how quickly and cooperatively the medical lien holders respond.

If you are nearing the end of your car accident claim in the Tacoma area, having an attorney you trust to handle these final, critical financial steps is essential. Search the Car Accident Lawyer Directory Tacoma to find a reputable local professional to guide you through the entire process.

References

• Washington State Bar Association (WSBA) – RPC 1.15A – Safeguarding Property:

  The official Rules of Professional Conduct that govern how Washington lawyers must handle client funds, including the strict requirements for using IOLTA (client trust) accounts.

  https://www.wsba.org/for-legal-professionals/rules-of-professional-conduct/rpc-1-15a

• Washington State Office of the Insurance Commissioner (OIC) – Subrogation:

  The official consumer guide explaining the process of subrogation, which is the legal mechanism for paying back medical liens from a settlement.

  https://www.insurance.wa.gov/subrogation-and-how-it-can-affect-your-auto-insurance-claim