The Process of Receiving a Settlement Check in Texas

Many people are anxious to settle their personal injury claim so that they can get the money they need to pay medical bills and make up for lost income. However, they may not understand the process leading up to this or how long it may take for them to receive their settlement check.

Steps Before Receiving a Settlement Offer

Before you can receive a settlement check, there are several steps that must take place, including:

• Investigation: The insurance company assigns an insurance adjuster to investigate the case. Your personal injury lawyer can also conduct an investigation to gather additional evidence to support your claim and version of events. Investigations may include:
  • Reviewing accident reports
  • Interviewing witnesses
  • Analyzing photos or videos of the accident scene
  • Reviewing medical records
  • Working with expert witnesses
• Calculating damages: You have the right to pursue compensation for all of your accident-related injuries and losses. Your personal injury lawyer can help identify and document these, which may include:
  • Medical bills for emergency medical treatment
  • Ongoing medical costs, such as rehabilitation, physical therapy, and follow-up visits with your doctor
  • Anticipated future medical expenses
  • Lost wages
  • Reduced earning capacity
  • Pain and suffering
  • Emotional distress
• Preparing a demand letter: Your personal injury attorney prepares a detailed letter that explains why the insured is responsible for the accident and the amount of compensation you want to receive for your claim.
• Negotiation: Your lawyer and the insurance company might go back and forth several times before they reach a final value.
• Agreeing to a settlement: You must agree to the settlement.

After Accepting a Settlement Offer

After you and the insurance company reach an agreement, the next steps are:

• Drafting a settlement agreement: The attorneys involved in the case draft a settlement agreement, which outlines the terms that you have agreed to. All parties sign the agreement.
• Drafting a release: You must sign a release of liability, which states that you will not pursue further legal action in the matter. This is a condition of your receiving any settlement funds.
• Issuing the check: The Texas Insurance Code’s Prompt Payment of Claims Act requires insurers to issue a settlement check within five days of receiving the signed release. The check is usually in the client’s and the lawyer’s name.
• Depositing the check in a client trust account: The lawyer deposits the check into an Interest on Lawyers’ Trust Account (IOLTA), a client trust account.
• Resolving liens: Your lawyer resolves outstanding liens and debts, such as by paying medical liens from healthcare providers and reimbursing health insurance for costs it initially paid.
• Deducting attorney fees and legal costs: Your attorney then deducts their attorney fees and case-related expenses.
• Receiving the check: After your attorney has resolved all outstanding liens, bills, and fees, they release the remainder of the settlement funds to you.

Contact Our Experienced Personal Injury Attorneys for Legal Guidance

At The Aguirre Law Firm, PLLC, we help our clients through every aspect of the personal injury claims process. We want you to focus on getting better while we focus on getting you results. Contact us today to arrange a free case review.