Reaching a personal injury settlement after a car accident or other incident can bring a huge sense of relief. However, many people are unsure what happens after the agreement is signed. In Illinois, settlement payouts follow a structured process that ensures that various obligations are satisfied before you actually receive your funds.
Once the parties agree to a settlement, the defendant (or their insurance company) issues a payment to your attorney’s trust account. This must generally be done within 30 days of signing the release of liability, which confirms that you won’t pursue further claims related to the same incident.
Your Chicago accident lawyer then distributes the funds in order of priority. This entails first paying outstanding medical bills and liens, then deducting legal fees and expenses, and finally issuing the remaining balance to you. This careful process ensures that everything is handled in accordance with Illinois law.
How Does the Settlement Distribution Process Work in Illinois?
Most settlement payouts involve several key steps before you receive the money. Although every case is unique at the end of the day, these generally involve the following:
- Payment of liens and debts: Any medical providers and other creditors with legal claims must usually be paid first.
- Attorney’s fees and costs: Your lawyer deducts fees and case expenses as outlined in your contingency agreement.
- Final client payment: Once all obligations are satisfied, the rest of the money is released directly to you.
Most clients receive their funds within a few weeks of signing the final paperwork, but delays can occur if there are any disputes and/or complex financial arrangements.
Lump Sum vs. Structured Settlements
In Illinois, personal injury settlements are generally paid in one of two ways:
- Lump sum: You receive the entire settlement at once, giving immediate access to the full amount.
- Structured settlement: Payments are spread out over time, often through an annuity, providing a steady stream of income.
Structured settlements can be helpful for long-term care or minors, while lump sums are more common in standard personal injury cases.
How Your Personal Injury Lawyer Can Help Guide You Through the Settlement Process
A Chicago injury attorney can play a vital role in ensuring you receive your full and fair settlement. An experienced Illinois personal injury lawyer can:
- Confirm that the release of liability is accurate and in your best interest
- Resolve any medical liens and negotiate for reductions if possible
- Ensure the insurance company pays promptly
- Oversee all disbursements and provide transparent accounting
Our attorneys with Meyers & Flowers have over 100 years of combined experience and have recovered more than $6 billion for accident victims in the area to date. We’ll work hard to ensure you receive the full value of your settlement as best as we can if you hire us to represent you.
Contact Our Personal Injury Attorneys To Schedule a Free Consultation and Learn More
While receiving a personal injury settlement is an important milestone, understanding how payouts work can prevent confusion and frustration. With the help of a qualified personal injury attorney, you can rest assured that your settlement will be distributed fairly and in full compliance with state law.
Call Meyers & Flowers today at (630) 232-6333 or contact us online to get started with a free initial consultation.