Craig D. Rosenbaum | October 29, 2025 | Personal Injury
Many personal injury claims are successfully resolved through settlements. Obtaining a settlement usually means that you will receive your funds faster and not have to go to trial. However, just because you’ve reached a settlement does not mean you are finished with your case. There are still a few steps you must complete to finalize your settlement and receive your funds.
Keep reading to learn more.
Steps Involved in Receiving Your Settlement Funds
Here are the steps that will need to be completed before you can receive your settlement funds:
Executing a Written Settlement Agreement
Most settlements initially occur verbally when your attorney and the insurance company agree on a final number—possibly after several rounds of negotiations. However, they must still formalize this agreement in writing. Only after the settlement agreement has been signed and delivered is it official and binding.
The written settlement agreement will include key terms, such as the amount you will receive and the payment schedule. Most agreements clearly state that the settlement does not constitute an admission of liability. By accepting the settlement funds, you typically agree to release the insurance company and the insured from any further claims related to the incident.
Sending the Money
The insurance company may send the settlement funds in different ways. This information could be included in the settlement agreement. For example, the agreement may specify that the funds will be sent via check or wire transfer. Wire transfers are typically instantaneous, but checks may take one to several weeks to clear once they have been received.
Most settlements are lump-sum payments, so you will usually only receive one payment. However, some settlement agreements pay out over time, in which case you might receive annuity payments for a certain number of years.
Placing the Funds in an Attorney’s Trust Account
Once your attorney receives the settlement fund or check, they will likely deposit it into a trust account, where client funds are held separately from business funds. Your attorney may make various deductions from this amount, such as:
- Payment of liens: Your attorney may pay medical providers who agreed to provide treatment and waive payment until you receive funds for your injuries, your own insurance company if it paid your accident-related expenses, or other deferred payments while your case was pending.
- Deductions for legal costs: Your attorney may have paid some costs to support your case, such as medical record retrieval fees, phone calls, and postage expenses. They can reimburse themselves for these costs.
- Contingency fees: Your attorney likely took your case on a contingency fee basis, meaning they receive a percentage of the proceeds they obtained from you. They will deduct this amount from your settlement.
The remainder of the settlement funds will then go to you.
Factors That Can Slow Down the Settlement Process
Some factors can delay when you receive your settlement funds, including:
- Lengthy settlement negotiations: Your attorney and the insurance company may go through several rounds of negotiations and may continue negotiating the terms of the settlement for months.
- Court approval: Settlements for minors and incapacitated persons must be approved by the court to ensure that the settlement is in the victim’s best interests. Court approval may also be necessary in other situations, such as when the case involves a class action or bankruptcy proceeding.
- Breach of contract: The insurance company or defendant could be acting in bad faith or breaching their contract to avoid paying you.
Your attorney can help protect your legal rights throughout the process, balancing your legal interests and your desire to be paid promptly.
Contact an Experienced Bronx Personal Injury Lawyer at Rosenbaum Personal Injury Lawyers for a Free Consultation
You don’t have to go through the confusing legal process alone. An experienced attorney from Rosenbaum Personal Injury Lawyers can handle the entire process of building and settling your claim for maximum compensation. Contact us today to schedule a complimentary consultation with a Bronx personal injury attorney.
Rosenbaum Personal Injury Lawyers – New York City Office
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New York, NY 10005
(212) 514-5007
Rosenbaum Personal Injury Lawyers – Bronx Office
1578 Williamsbridge Rd suite 3b
Bronx, NY 10461
(212) 514-5007
(917) 905-2339
Rosenbaum Personal Injury Lawyers – Brooklyn Office
32 Court St #704
Brooklyn, NY 11201
(212) 514-5007
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