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Verdicts & Settlements

How Are Personal Injury Settlements Paid in California?


— December 5, 2023

The final step is getting the money you deserve for your injuries. Your attorney will provide a detailed invoice with the settlement amount minus any liens, legal fees, and contingency fees. Once you sign it, you can get your settlement check.


If you were hurt by another party’s careless or negligent actions, you may be able to seek compensation. Often, this ends in a settlement agreement rather than going to the courtroom for trial.

Once you make this agreement, it resolves the case and you are barred from further legal action in this particular matter. This is why it’s important to understand more about the personal injury settlement process and how these settlements are paid in California.

What Happens During a California Personal Injury Settlement?

There are a few steps that need to occur before you are paid a settlement in a personal injury case. 

Signing the Release Form

The liable party’s insurance company may send you a settlement offer. While you don’t need an attorney, it is wise to consult one to make sure this offer is sufficient to cover your damages from the accident.

According to Maki Legal, you do not want to sign this form without going over every last detail. Once both parties sign it, the defendant is released from future liability in exchange for this settlement payment.

A Check Is Written

If everything looks good on the settlement and you sign the release, the insurance company for the liable party will issue the settlement check. In California, the insurance company needs to issue this check immediately after the agreement has been signed. The company will have up to 30 days to write you a check.

Depositing the Check

The next step in getting your settlement money from your personal injury involves your attorney. They will deposit the check into a trust account on your behalf as it awaits the final resolution. This money will be used to pay for any outstanding bills from your medical treatments and other expenses related to your personal injury case.

Negotiating the Bills and Debts

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Before you can access this money from your settlement, your attorney can negotiate with medical providers to help you get the care you need. They will also settle any liens for you, which must be done before you can get your settlement.

Receiving Your Settlement Money

The final step is getting the money you deserve for your injuries. Your attorney will provide a detailed invoice with the settlement amount minus any liens, legal fees, and contingency fees. Once you sign it, you can get your settlement check.

You can choose to receive this settlement as either a lump sum or a structured settlement. Lump sum payments mean you get the full amount of the settlement all at once. This allows you to use the money freely as you wish, though for some people, it may cause splurging.

If you are prone to making rash financial decisions, you may want to choose a structured payment that pays you in periodic installments over the course of one to five years. It will depend on your situation as to which settlement option is best. You should discuss it with your attorney and a financial advisor to decide what is ideal for you.

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