How Long Does It Take to Get a Compensation Payout?

After being injured in an accident caused by someone else, many people wonder when they will get their money.

If you’re in this situation, you likely have a mountain of expenses to cover. The longer you wait, the longer you may struggle to pay your bills.

Most personal injury lawsuits will take months before they are resolved, though some can take much longer. Once both sides agree on a settlement, though, it can be a tremendous relief. However, this agreement doesn’t mean you will get your money the same day.

What Happens After Compensation Agreements in Personal Injury Cases?

If you and the other party have finally agreed on the amount of compensation, the process isn’t quite over. This may take some time to complete, and most injury victims can expect it to take about a month.

It takes time for insurers to process and issue checks for compensation payouts. Your attorney will be working to ensure everything is in order. They will also deduct their fees from this check once it is received before turning over the rest to you.

Possible Delays That May Arise with Your Compensation Payout

Sometimes, delays get in the way of you receiving your compensation. Errors in release forms could prolong the process. Additionally, checks that are mailed could be subject to delays through the postal service. 

If your settlement amount is larger than the average sum, it may take longer to complete through the insurance company. Their adjusters may spend more time reviewing your agreement if the settlement is six figures. Working with a personal injury lawyer ensures you have someone keeping an eye on things and representing your best interests when it comes to compensation payouts.

Choosing Your Type of Settlement for Personal Injury Payouts

Another thing that may affect how quickly you get your compensation is the type of settlement you choose. You can either have it as a lump sum or a structured settlement. 

With a lump sum, the at-fault party sends the full amount in a single check. Once you receive it, you can use it to meet all your financial needs and pay your medical bills and any other unexpected costs. You can also invest it, though the point is that you will not receive any additional money from the other party with a lump sum. If you spend it all, that’s it. 

Structured settlements may be best if you can’t resist the temptation of having a large sum of money in your account. With this method, you will get your compensation in a series of payments over time. If your settlement is large, you may prefer this method as it gives you consistent money on a set schedule over time. You’ll have what you need coming in installments over the years to pay for future bills. The downside is that if any unexpected expenses come up, it limits your ability to manage them. 

The decision is yours to make, though it is wise to consult a financial expert and your attorney first.

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