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How to Get Your Settlement Money Now

The Fastest Way to Get Your Settlement Money Now

Getting your settlement money as quickly as possible often requires strategic planning and proactive steps. Whether you’re awaiting a settlement check from a personal injury case or a car accident lawsuit, the timeline for receiving payment can vary widely depending on several factors such as the complexity of the case and the efficiency of your attorney.

While waiting for your settlement money, you can access a cash advance on your settlement money by applying for a settlement loan. If your case is still in progress and you’ve not reached a settlement agreement, you can go for pre-settlement funding. On the other hand, you can access post-settlement funding if you’ve reached a settlement agreement but have yet to receive your settlement check.

At Stonewood Funding, our lawsuit settlement loans grant you fast access to legal funding in just 3 easy steps. You can even get the lawsuit cash advance within 24 hours if you qualify for our same-day pre-settlement loans. Take a few minutes to apply online now and get your cash advance immediately after you’re approved.

Drawing from over a decade of experience in legal funding, we’ve crafted this guide to navigate you through the quickest ways to access your settlement money and answer your question “How to get my settlement money now”.

How Long Does It Take to Get Paid After a Settlement?

How Long Does It Take to Get Paid After a Settlement?

Reaching a settlement does not mean you’ll get the money immediately. Between the time of agreement and payout, there are other processes that your attorney goes through before you finally get the settlement money in your account. How fast you can get your settlement funds depends on how quickly these processes are done and the type and nature of your case.

For a personal injury case, the negotiation phase can last several months depending on how complex the case is, how severe the injuries are, and clarity regarding fault. Once a settlement is agreed upon, signing the settlement agreement and release form typically takes a few days to a few weeks. The payout usually occurs within 30 days to six weeks after the settlement agreement and release are finalized, allowing time for processing and resolving any liens.

For car accident cases, negotiation and settlement can be reached relatively quickly if liability is clear. It’s often within a few months but can take longer if there are disputes. The process is similar to personal injury cases, taking a few days to a few weeks to sign the necessary documents. Payouts typically are processed within 30 days to six weeks after finalizing the settlement agreement and release, including time for lien resolution.

Factors That Can Delay Settlement Money After Settlement

Factors That Can Delay Settlement Money After Settlement

When you’re waiting for a lawsuit settlement check, several things can slow down the process. Understanding these factors can help you know what to expect and might even help speed things up. Common reasons for delay in getting your settlement money include:

  1. Release Forms: You’ll need to sign a release form from the defendant’s insurance company to indicate your agreement not to take any further legal action. It takes some time to get, sign, and return these forms.
  2. Liens and Debts: Resolving liens from healthcare providers, creditors, child support, etc., can slow down the process. The defendant has to make sure that all outstanding liens are settled from the settlement funds before releasing the money to the plaintiff.
  3. Banking Processes: If the settlement money is huge, it may take more time to access the funds as banks usually place a hold on large checks to ascertain that the checks clear before they release the funds.
  4. Waiting for Court Approval: For cases involving minors or a class action lawsuit, you may not be able to get the settlement until the court approves it. The time it takes to obtain court approval adds to the overall delay in getting the funds to their final destination.
  5. Delays From Defendant’s Insurance Company: Factors such as delays in internal processing or assessment timelines can contribute to delays in getting settlement funds. Also, some insurers delay signing the check in an attempt to buy more time for more negotiations.
  6. Attorney Processing: Processes involved in processing the check, such as paying off outstanding liens or legal fees and depositing the check in a trust account may require some time from your attorney.
  7. Complexity of the Settlement: Usually, it takes a longer time to process more complex cases. Cases involving multiple parties or disputes over the settlement amount may take a longer time to finalize and send out the money.

If you are seeking financial support while you await your settlement money, you can obtain an advance on your settlement check by applying for a lawsuit loan with a reputable pre-settlement funding company. At Stonewood Funding, we offer pre-settlement loans at the very best rates. Apply online now or send us a message let’s get started.

How To Get Your Settlement Money Fast

How To Get Your Settlement Money Fast

There are various factors that influence how fast you get your settlement money, including the nature of the settlement, the entities involved, and the specific terms agreed upon. However, there are also several steps you can take to expedite the process. Here’s a guide to help you get your settlement money as quickly as possible:

1. Understand the Settlement Terms

Carefully review the settlement agreement to understand the terms, especially those related to payment. Look for any clauses that specify payment timelines or conditions that must be met before payment is issued. Consult with your attorney if you’re not clear on any of the terms.

2. Complete All Paperwork Early

Make sure that you fill out all necessary paperwork accurately and completely. Any errors or omissions can delay the process. Submit all documents as soon as possible to avoid any delays, and be sure to include all relevant documents.

Examples of documents that can help speed up the process include:

  • Settlement Agreement
  • Release Form
  • Proof of Identity (e.g., driver’s license, passport)
  • Bank Account Information for Direct Deposit
  • Completed W-9 or W-8BEN Form (for tax purposes)
  • Medical Records and Bills (if applicable)
  • Proof of Damages or Loss (e.g., repair estimates, receipts)
  • Correspondence with Insurance Companies
  • Legal Documentation (e.g., court orders, arbitration awards)
  • Power of Attorney (if someone is acting on your behalf)

3. Request Direct Deposit

If available, go for direct deposit instead of a check. Direct deposit usually speeds up the payment process significantly. Provide your bank details (bank name, account number, and routing number) to the paying party.

4. Communicate Efficiently

Keep in touch with the attorney, insurance company, or the entity responsible for issuing the settlement. It’s easier to be aware and address any delay concerns when you’re communicating actively with them. Don’t hesitate to follow up regularly with the entity processing your settlement. Regular check-ins can ensure your case stays on their radar and might expedite the process.

5. Understand Tax Implications

Be aware of any tax implications related to your settlement, as this can affect the timing and amount of money you receive. Consulting with a tax advisor can help you understand these aspects better. While it’s important to push for a quick settlement, understanding that these processes can take time is also essential. Being patient but persistent can help you navigate the process more smoothly.

6. Apply for Post Settlement Funding

Sometimes, you may have bills to settle before your settlement funds come in. In such cases, you may consider getting post-settlement funding from a legal funding company.

Post-settlement funding is a kind of legal funding that allows you to receive a cash advance on your settlement after the case is resolved and a settlement agreement has been reached. Unlike pre-settlement funding which provides cash advance based on the expected future settlement while the case is still on, post-settlement lawsuit loans provide you with a cash advance only when a settlement agreement has already been reached.

Structured Settlements vs Lump Sum: Which One is Better For You?

Typically, there are two ways to receive your settlement: as a lump sum or through structured settlements. Each option has its advantages and disadvantages, depending on your personal circumstances, financial needs, and long-term goals.

What is a Structured Settlement and How Does it Work?

What is a Structured Settlement and How Does it Work?

Structured settlements are a series of settlement payments made over a period of time, agreed upon during the settlement of personal injury lawsuits or car accident cases. These payments provide a steady income stream and can be tailored to meet your financial needs over time.

After both parties agree to a structured settlement, the defendant or their insurance company purchases an annuity from a life insurance company. An annuity is a financial product that provides regular payments over time. The cost of the annuity is determined by the total settlement amount, the payment schedule, and the terms agreed upon.

The payment schedule for the structured settlement can be customized to the recipient’s needs. They can set up payments to start immediately or at a future date at monthly, annually, or other intervals. The schedule can also include provisions for larger payments at certain times (e.g., to cover future education expenses or medical treatments).

What is Lump Sum Settlement and How Does it Work?

What is Lump Sum Settlement and How Does it Work?

A lump sum payment is a one-time payment received from a settlement. This means the entire amount of the settlement is paid to you upfront, providing immediate access to the funds.

In a lump sum settlement, the entire settlement amount is paid to the plaintiff in a single payment, usually within a short period of time after the agreement is finalized. By accepting the lump sum payment, the plaintiff agrees to resolve the legal claim or dispute and usually gives up the right to pursue further legal action related to the same matter.

Lump sum settlements provide plaintiffs with immediate access to funds to cover medical bills, lost wages, and other expenses. However, it’s important to carefully consider the terms of the settlement and consult with legal and financial advisors before accepting a lump sum payment.

Should I Take a Lump Sum or Structured Settlement?

During settlement negotiations, it’s recommended to choose the payout method that best aligns with your financial goals. Here are some advantages of both methods to help you make informed decisions.

Structured settlements provide regular payments over time, which can help manage living expenses and provide financial stability. Also, payments from structured settlements are typically tax-free, ensuring you receive the full benefit of each payment. Moreover, the payment schedule can be customized to fit your personal financial needs, including upfront payments, delayed payments for future needs, or increasing payments over time to account for inflation.

On the other hand, receiving your settlement in a lump sum gives you immediate access to all the money, which can be crucial for paying off medical bills, debts, or making significant investments. With the entire settlement at your disposal, you can invest the money in ways that could yield a higher return than the total value of structured settlement payments over time. Also, once you receive a lump sum, you’re not reliant on the payer for future payments, eliminating the risk of payment default.

How to Manage Taxes Associated With Settlement Money

How to Manage Taxes Associated With Settlement Money

To manage taxes on settlement money effectively, you must understand the tax implications of your settlement, engage in good planning, and potentially seek professional advice. Practical steps you can take to manage these taxes efficiently include:

  • Understand How Tax Applies to Your Settlement: Different components of a settlement can have different tax treatments. Generally, compensatory damages for physical injuries or sickness are not taxable. However, punitive damages, damages for emotional distress not stemming from a physical injury, and interest on the settlement are typically taxable. Employment settlements, like those for lost wages or discrimination, are also taxable.
  • Document and Allocate the Settlement Correctly: Ensure that the settlement agreement clearly specifies the allocation of the settlement amounts across different categories such as compensatory damages, punitive damages, and emotional distress. This allocation is crucial for determining the tax treatment of each portion of the settlement.
  • Deduct Legal Fees Where Applicable: In some cases, you may be able to deduct legal fees associated with obtaining your settlement. This is often limited to the portion of your settlement that is taxable. For instance, if part of your settlement is for taxable wages, the legal fees related to that portion may be deductible.
  • Keep Detailed Records: Maintain comprehensive records of the settlement, including the original claim, the settlement agreement, the breakdown of the settlement amounts, and all related expenses. These documents are essential for accurate tax reporting and if the IRS requires documentation.
  • Report Settlement Money Accurately on Tax Returns: Based on the nature of your settlement, report the taxable and non-taxable portions accordingly on your tax return. Failure to report settlement money correctly can lead to penalties and interest from the IRS.
  • Consider the Timing of Your Settlement: The timing of your settlement could impact your tax liabilities, especially if it moves you into a higher tax bracket for the year. Planning the receipt of your settlement with tax implications in mind can be advantageous.
  • Consult with a Tax Professional: Tax laws can be complex and subject to change. Consulting with a tax advisor or accountant who understands the nuances of settlement taxation can provide tailored advice, helping you to navigate your tax obligations and opportunities for tax savings.

Need Settlement Funding Now?

Even after the defendant releases your settlement check, it may still take some time for your lawyer to disburse it to your account. Thankfully, you can apply for lawsuit funding from a reputable pre-settlement funding company to access a cash advance to sort out your immediate financial needs. Most settlement loan companies offer this financial assistance only when you’re likely to win (pre-settlement funding) or after you’ve confirmed the settlement agreement (post-settlement funding). If you need settlement loans in California, reach out to Stonewood Funding now to get funded fast.

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