Medical expenses represent a key priority for injured plaintiffs in California. The sooner plaintiffs can cover medical expenses, the sooner they can heal in an effective, confident manner. Until they receive this compensation, they may experience ever-increasing medical bills without a clear way to pay them. Concerns over debt may continue to increase until either an injury settlement or a trial judgment. But even after these two outcomes, plaintiffs may still face delays before actually receiving the necessary funds to cover medical expenses. Lifelong medical expenses for permanent disabilities are of particularly high concern. How long must plaintiffs wait after settlements or trial outcomes before they can cover their medical expenses?

Processing Time for Compensation After Settlements

Generally speaking, it may take weeks to receive compensation for medical expenses after a settlement has been agreed upon by both parties during negotiations. There are various processes that must occur before the funds are finally distributed:

  • Signing a Release: First of all, the plaintiff must sign a release. This is essentially an agreement not to pursue further legal action against the defendant. It also means that the defendant does not publicly accept any fault or wrongdoing.
  • Dismissing Court Action: If there are pending court actions, the defendants and their lawyers must dismiss these actions before they can receive the settlement.
  • Funds are Released to the Lawyer’s Trust Account: After the release and other documents have been provided to the defendant’s lawyers, the funds may be distributed directly to the trust account of the plaintiff’s lawyer.
  • Calculating Fees: Before the plaintiff’s lawyer provides the settlement to the plaintiff, they must first calculate any outstanding fees. Most injury lawyers are paid via a contingency fee, which means that they only get paid when and if the plaintiff receives compensation.
  • Preparing Statements: The lawyer may also prepare a statement that provides a breakdown of all fees. This statement should be provided along with the distribution of the final settlement in order to ensure transparency.
  • Distribution of Funds to the Plaintiff: Once all of these steps have been completed, the funds are finally distributed from the lawyer’s trust account to the plaintiff’s chosen bank account. Any delays in the above steps can add weeks to the overall process.

Note that this process often involves insurance companies to some extent, especially in the context of an auto accident. Some insurance companies are faster than others in terms of processing, approving, and distributing funds. Some lawyers are also more familiar with certain insurers, and these existing relationships can allow for faster processing and resolution.

Processing Time for Compensation After Trial Outcomes

According to the Judicial Branch of California, defendants who lose civil cases become “judgment debtors.” At the conclusion of the trial, the court orders these defendants to pay out a certain amount of money to the plaintiff. They are expected to pay these sums to the defendant voluntarily, and the court does forcibly collect the money on behalf of the plaintiff. However, defendants who fail to pay these sums voluntarily will face various legal consequences.

Defendants are encouraged to pay these sums as soon as the judgment has been entered. However, certain things like bankruptcies may suspend or postpone the payment. Defendants can opt for payment plans to cover judgments in installments, but the plaintiff must agree to this. The agreement may include interest charges. Other options for collecting the judgment include wage garnishments and other levies.

 Will I Receive My Settlement in a Lump Sum?

Generally speaking, settlements are provided in lump sums. This means that plaintiffs will receive all of the money at once. If plaintiffs are facing lifelong injuries and disabilities, this sum could be enough to cover an entire lifetime of medical expenses. As such, this lump sum may number in the millions. It is up to the plaintiff to budget the funds accordingly to ensure that they will cover all future expenses.

Faced with the challenges of budgeting effectively for the rest of their lives, plaintiffs may wish to receive their settlements in installments instead. This helps them avoid the mistake of spending too much money at one time and not having enough money to cover their medical expenses during their later years. If plaintiffs wish to receive a structured settlement paid out in installments, they should speak to their attorney about the best way to do this.

Where Can I Find an Experienced Personal Injury Attorney in California?

If you have been searching for a personal injury attorney in California, look no further than Miracle Law, APC. We understand the need to cover medical expenses in an expedited manner, and we can help plaintiffs use various strategies to expedite this process. While certain delays may be outside of plaintiffs’ control, it may be easier to cover medical expenses faster with the right legal assistance. Book your consultation today to discuss specific legal strategies and get started with an effective action plan.