P&N Blog | When Your Personal Injury Case Settles – The Disbursement Process

When Your Personal Injury Case Settles – The Disbursement Process

After what can feel like a long process, the time has come for your personal injury case to either win a verdict or reach a settlement. So now what? When dealing with a personal injury case or any legal matter that involves a settlement, understanding the process can ease a lot of confusion. 

At the Law Offices of Parente & Norem, P.C., we do everything we can to have your funds dispersed to you in a timely manner. The process is two-fold; there’s the final work your attorney needs to do to complete your file, as well as an operational component that ensures all guidelines have been followed in order to have your funds dispersed free and clear of any more ‘red tape.’ Here’s a detailed breakdown of what happens from the time of verdict/settlement to the final disbursement of funds.

The Attorney Process

Release of Claims
Once the settlement agreement is reached, the insurance company or defense counsel sends the plaintiff’s attorney a document called a release of claims.

• This document outlines the settlement terms, including the payment amount, and legally releases the defendant from any further liability for the incident in question.
• By signing this document, the plaintiff agrees not to pursue any additional claims related to the same event.

Attorney Review
The plaintiff’s attorney thoroughly reviews the release to ensure:

• The terms match what was negotiated.
• The agreement serves the client’s best interests.
  Once satisfied, the attorney sends the release to the client for their signature.

Limited Power of Attorney (LPOA)
Along with the release, the attorney provides a Limited Power of Attorney (LPOA) form.

• This allows the attorney to deposit the settlement funds into the client’s trust account once received.
• It also permits the attorney to negotiate and resolve liens or outstanding medical bills related to the case, which helps maximize the client’s net recovery.

Settlement Fund Timeline

After all paperwork is signed and submitted, it typically takes 30 to 60 days for the settlement funds to be processed and sent to the plaintiff’s attorney.

The Operational Process

Negotiating and Resolving Liens
Once the attorney receives the settlement funds, they negotiate lien payoff amounts and finalize payments for any outstanding medical bills.

• This ensures the client receives the maximum possible net settlement.

Settlement Disbursement Packet
After resolving all liens, the attorney prepares a settlement disbursement packet, which includes a breakdown of the settlement amounts. This packet is passed to the operations or accounting team for processing.

Disbursement of Funds

• Once all numbers align with the total settlement amount, checks are issued in the names of the client and any medical providers.
• The client is invited to the attorney’s office for a final disbursement meeting, where they review the settlement breakdown, ask any questions, and sign the closing statement.

Final Steps

• After signing the closing statement, the client authorizes the attorney to send checks to medical providers for their portion of the settlement.
• The client receives their net settlement check, which reflects the amount left after deductions for liens, legal fees, and other case-related expenses.
• Once all payments are made, the case file is officially closed.

The settlement process can seem complex when your personal injury case is resolved, but with a knowledgeable attorney here at The Law Offices of Parente & Norem  guiding you, it’s designed to protect your rights and maximize your recovery. From negotiating the terms of the release to ensuring every dollar is accounted for, this process ensures that you receive what you deserve while addressing any financial obligations tied to your case.