After a car accident in NYC, you’ve filed a personal injury case and managed to come to a settlement with the other side. However, the success will soon be followed by a very important question, “How long does it take to get paid after the settlement is finalized?” While a settlement confirms the amount you receive, the payment itself will take some time to reach you. In this post, the team at Alex Yadgarov & Associates will be your accident lawyer in New York and explain everything you need to know about accident settlement payments in NYC.
How Long Does It Usually Take to Receive a Settlement Check in NYC?
In New York, you will receive your settlement check within 4-6 weeks after you’ve signed all the relevant formal documents. However, there is no fixed timeline that applies to every case. The process involves steps like signing release forms, payment processing by the insurance company, and the distribution of funds.
What is the Settlement Payment Process After a Car Accident?
Once you’ve agreed on a settlement, there are a few more steps that need to be completed before you receive your check. They include:
Signing release forms
Once you and the insurance company agree on the settlement, you will need to sign a Release of Liability. This is a legally binding document that stops you from seeking additional compensation or taking future legal action against that insurer for this specific accident.
Payment processing
Once the forms have been signed, the insurance company will start processing the payment. Under New York law (CPLR), insurance companies must issue the payment within 21 days of receiving the signed release. However, if the defendant is a government entity (e.g., the MTA or the City of New York), the payout can sometimes take up to 90 days.
Clearing the funds
The insurance company will send the check to your lawyer’s office. Your accident lawyer in NYC can deposit the check in a secure escrow or trust account until the funds have been cleared. This can take anywhere from 3 to 7 business days.
Resolving Liens
Before you receive your check, your attorney is legally obliged to resolve any outstanding liens connected to your settlement. These include unpaid medical bills, health insurance reimbursements, and other relevant, unresolved expenses.
Final disbursement
Once the liens have been resolved and legal fees deducted, your attorney will disburse the balance sum to you. You can either choose to receive it as a lump sum (i.e., the entire amount as a single payment) or as a structured settlement where the funds are paid out in a scheduled installment. The second option is used in cases of severe injury and where long-term financial planning is required.
What Can Delay a Car Accident Settlement Payment?
Some of the most common reasons for delays in car accident settlement payments include:
- Incomplete paperwork
- Disputed liens
- Processing delays by the insurance company
- The presence of multiple claimants
- Bank clearance requirements
What Can You Do to Avoid Unnecessary Delays?
While some delays are beyond your control, there are things you can do to prevent delays from your end. They include:
- Quickly responding to any request (e.g., request for additional information)
- Maintaining and providing relevant documentation when needed.
- Maintaining clear and frequent communication with your attorney.
- Taking steps to promptly resolve any outstanding issues.
What Should You Do If Your Settlement Check Is Delayed?
If you have not received your settlement check within the standard processing window, get in touch with your attorney first. Let them handle all direct communications with your insurance company. You can ask the lawyer to verify that all the relevant paperwork has been filed and to check the status of any outstanding liens or subrogation claims.
If the deadline has passed without any legitimate explanation, you can ask your attorney to escalate the situation. This can be done by:
- Sending a letter of demand calling for immediate payment
- Filing a motion with court to enforce the settlement
- Filing a formal complaint with the New York State Department of Financial Services (if the insurance issuer is a private insurer)
If you are under extreme financial hardship due to not receiving your settlement check, you can also discuss options for pre-settlement legal funding with your attorney.
Conclusion
Receiving a favorable settlement is a major milestone in your NYC car accident claim. But it’s important to remember that there is still more that needs to be done to cross the finish line. In most cases, completing the relevant steps means you will receive compensation within a few weeks. However, certain factors can extend the timeline, so it is important to be prepared.
If you’re looking for expert legal assistance with your NYC car accident claim, Alex Yadgarov & Associates is here to help. We will work hard to make sure you receive the compensation you deserve, on time. Contact us today and schedule your free consultation.
