After you settle a personal injury case, the next big question is: when will I get paid? It’s a fair question, especially when you’ve been dealing with medical bills, time off work, or other costs. While every case is a little different, most people in Nevada can expect to receive their settlement check within about six weeks. But that doesn’t mean the check arrives the day after you sign.
Several steps need to happen before you see the money in your account. Some of these steps take just a few days, while others may take a few weeks. This guide breaks down the full timeline so you know what to expect after your case settles.
Step 1: Signing the Settlement Agreement
The process starts once both sides agree to a settlement amount. You’ll need to sign a formal settlement agreement. This is a legally binding document that confirms you’re accepting the offer and ending the case. It’s important to review this document carefully with your attorney before signing. Once it’s signed, the legal side of the case is officially closed.
This step can be quick, but the timeline depends on how soon the agreement is prepared and reviewed. Sometimes, insurance companies or defendants may also need to sign paperwork or release forms before things can move forward.
Step 2: Insurance Company Processes the Payment
After the paperwork is signed, the insurance company begins processing the payment. This part usually takes between 7 to 10 business days. The insurer might issue a paper check or send the funds through direct deposit. Delays can happen if the insurance company is slow to act or if there are questions about the documents.
It’s not just about printing a check. The insurance company has to review all signed agreements, confirm everything is complete, and approve the release of funds. In more complicated cases, this step may take longer.
Step 3: Settlement Funds Sent to Attorney’s Escrow Account
Once the insurance company sends the money, the settlement check doesn’t come straight to you. It goes to your attorney first. The funds are deposited into a secure trust or escrow account. This account is used to temporarily hold the money until all deductions and payments are handled.
The check must clear before anything else happens, which could take a few business days. Your lawyer cannot release the funds to you until the check is verified and fully processed by the bank.
Step 4: Liens and Medical Bills Are Paid
Before you can get your part of the settlement, any outstanding liens or medical bills have to be paid. This step is one of the most common reasons for delays. Liens might come from:
- Hospitals or doctors who treated you on credit
- Health insurance companies who paid your bills
- Government programs like Medicare or Medicaid
These groups often have a legal right to be paid back out of your settlement. It can take one to two weeks to finalize and pay these claims. Sometimes it takes longer if negotiations are needed to reduce the amount owed.
Step 5: Legal Fees and Case Costs Are Deducted
After liens are paid, your attorney deducts their fees and any costs related to the case. This can include:
- Attorney’s percentage from the settlement
- Court filing fees
- Expert witness fees
- Medical record retrieval costs
These costs are explained in your closing statement. Once everything is subtracted, the rest of the money is yours.
Step 6: You Receive Your Settlement Money
Now comes the part you’ve been waiting for. After the check clears, liens are paid, and fees are handled, you get the remaining balance. Your attorney will either mail you a check or send the funds by direct deposit, depending on what you prefer.
If everything moves smoothly, most clients in Nevada receive their money about six weeks after signing the settlement agreement. But if something gets held up, like lien negotiations or insurance delays, it may take a bit longer. If six weeks pass and you haven’t received anything, you should reach out to your lawyer for an update.
What Can Cause Delays?
Most settlements follow the same steps, but certain issues can slow things down:
- Waiting on a defendant’s signature on a release form
- Slow processing by insurance companies
- Estate or probate paperwork (in wrongful death cases)
- Appeals filed by the other party
- Difficulty resolving large or complex liens
These delays are not always within your or your attorney’s control, but your legal team should keep you informed along the way.
Are Settlement Payments Taxable?
In most personal injury cases, the money you receive is not considered taxable income. This includes compensation for medical bills, lost wages, and pain and suffering. But if your case involved interest or punitive damages, a portion may be taxed. It’s always smart to check with a tax advisor or your attorney just to be sure.
How Will You Receive the Money?
You can usually choose whether you want your money as a paper check or through direct deposit. Direct deposit may be faster, but some clients prefer a check. Let your attorney know your preference early so everything is ready when it’s time to send the funds.
What to Do While You Wait
Waiting for your personal injury settlement check can feel like it takes forever, especially when you’ve already gone through a lot. But knowing what steps are involved helps make the wait less frustrating. From signing the agreement to paying off liens and fees, each part of the process has a purpose.
If it’s been more than six weeks and you haven’t received your settlement money, don’t stay in the dark. Call Friedman Injury Law at (702) 970-4222 and ask for an update. Our Las Vegas injury firm is here to help you get through every part of the process, from start to finish.
