Car Accident Lawyer
When a car accident changes your life, receiving compensation as the result of winning a lawsuit against the responsible party can take much of the financial burden off your shoulders. However, once you win your lawsuit, there is still the matter of when and how you will receive your settlement money. There are several steps both you and your attorney may have to take before you are granted a check.
- Sign the Order of Settlement
Once the at-fault party is found to be responsible for the car accident that injured you, that individual’s or company’s legal representative will likely draft what is called an Order of Settlement. This document outlines the details of how you will receive your settlement money and may include certain conditions, such as you agreeing not to pursue further legal action against the defendant. You may want to have your lawyer present when you sign this document to ensure it is in good order and that you understand the details contained within, especially if the document is lengthy.
- Release of the Check
Once the insurance company of the at-fault party receives and reviews the Order of Settlement, it will create and release a check made out to both you and your attorney. This makes it easier for your lawyer to collect his or her fee before the remainder of the money is released. As such, the check will require both signatures.
- Escrow and Liens
After the check is properly signed, your attorney will place it into an escrow account, where it will remain until the bank clears it and the funds are deposited. Once the money is available, you can pay any outstanding medical bills that occurred as a result of your car accident. If you have any other liens related to child support or if you owe another attorney money, you must pay them out before you can receive any remaining money from the settlement.
- Receiving the Secondary Check
When all your legal and medical fees are settled, your attorney will create a second check in the amount left over, which is made out only in your name. You may use this money as you see fit. While most personal injury funds are non-taxable, you may want to check with an accountant, as there are a few exceptions.
Winning a personal injury settlement can help you recover from the financial burden a car accident caused, and there is help available for settlement questions. Contact a car accident lawyer, like from The Law Firm of Frederick J. Brynn, P.C., today for further assistance and advice.