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What is the settlement process in a personal injury case? by Nares Law Group

Posted by Kaitlin Nares | Jan 24, 2025 | 0 Comments

Steps that are taken between a personal injury case settling and the client getting a check:

  1. Settlement Agreement and Release: Once the personal injury case settles, both parties formalize the agreement in writing through a settlement agreement and release. This document outlines the terms of the settlement, including the amount to be paid, the release of liability, and any other conditions or requirements.
  2. Review and Execution: The parties, along with their attorneys, review the settlement agreement and release to ensure it accurately reflects the terms agreed upon during negotiations. Once both sides are satisfied, they sign the document to make it legally binding.
  3. Processing and Approval: After the settlement agreement is signed, it may need to go through various administrative processes, such as internal approval within insurance companies or legal departments. This step ensures that all parties involved in the settlement process are in agreement.
  4. Attorney Confirms Outstanding Balances and Requests Reductions: Before disbursing the settlement funds to the client, the personal injury attorney needs to confirm any outstanding balances with medical providers, hospitals, or other entities involved in the client's medical care and treatment. The attorney will review medical bills and any liens placed against the settlement to identify the amounts owed.
  5. Negotiating Liens and Reductions: If there are liens against the settlement proceeds, such as health insurance liens or Medicare/Medicaid liens, the attorney may negotiate with these parties to reduce the amount owed. This negotiation aims to maximize the client's portion of the settlement.
  6. Locating Additional Liens: The attorney will conduct a thorough search to locate any additional potential liens against the settlement, such as liens from healthcare providers, government agencies, or other third parties.
  7. Settlement Check Issuance: Once the settlement is approved and all outstanding balances and liens are confirmed, the at-fault party's insurance company or their attorney will issue a settlement check to the injured party's attorney.
  8. Settlement Funds Distribution: Before the client receives their portion of the settlement, any outstanding liens or obligations related to the case must be addressed and paid. This includes any medical liens, outstanding medical bills, and other potential obligations.
  9. Time for Check Clearance: After receiving the settlement check, it may take some time for the funds to clear, especially if the check is substantial. The attorney will advise the client on the expected time frame for check clearance.
  10. Disbursement to the Client: Once the settlement funds have cleared and all necessary deductions have been made, the attorney will disburse the client's portion of the settlement. This amount represents the client's compensation for their injuries and damages as outlined in the settlement agreement.

The personal injury attorney plays a crucial role in ensuring that the settlement process is handled efficiently and that the client receives fair compensation after addressing all outstanding balances, liens, and other obligations related to the case.

CONTACT A PERSONAL INJURY ATTORNEY IN COLORADO TODAY If you or a loved one have been injured in an accident and are considering whether to pursue a claim, you should contact Nares Law Group to schedule a Free Consultation. Call 720-637-7786 or fill out our contact form at www.NaresLawGroup.com to get started on your road to recovery.

About the Author

Kaitlin Nares

Kaitlin Nares is a partner and founder of Hagen Nares PLLC. Kaitlin is known for her compassion, professionalism, and clear communication. Kaitlin co-founded Hagen Nares PLLC as the culmination of her passion for the law and her desire to help families that have been severely injured at no fault ...

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