When Are Personal Injury Settlements Paid Out?

Understanding Payout Timelines and Delays in New York Personal Injury Cases

After an accident, most people feel overwhelmed. You're in pain, bills start to pile up, and every call from the insurance company makes things worse. Understandably, one of the first questions clients ask us is: "When will I get paid?" It's a fair concern. You want to move forward, cover your expenses, and put the stress behind you.

At Horn Wright, LLP, we help injured New Yorkers handle the legal side of things so they can focus on healing. Our attorneys understand how stressful it is to wait for a settlement check while your life feels paused. With experience across all corners of New York State, we work to resolve claims as quickly and efficiently as possible.

Settlement Basics in New York Personal Injury Claims

A personal injury settlement is an agreement between you (the injured party) and the person or entity that caused the harm. In most New York cases, that means their insurance company agrees to pay you a specific amount in exchange for you dropping your legal claim.

Unlike a trial, where a judge or jury decides the outcome, a settlement happens outside the courtroom. Most personal injury cases in New York settle before reaching trial. Settling saves time, reduces legal costs, and gives everyone more control over the result.

Some quick facts about settlements in New York:

• The statute of limitations for most personal injury claims is 3 years
• Settlements require a signed release form before money is issued
• In some cases, court approval is necessary (such as for minors)

Whether you were hurt in a Brooklyn car crash or slipped on ice outside a Syracuse storefront, the settlement process follows the same core steps across New York.

What Triggers a Settlement Payment Timeline?

Settlement payment timelines don’t start when you file a claim. They start once all sides agree on an amount and sign the appropriate legal documents. That agreement becomes binding, and the clock starts ticking on when you should receive payment.

Here’s what often triggers the settlement clock in a New York injury case:

• Both parties sign the settlement release
• The insurance company receives the signed release
• The release is reviewed and approved internally
• Any required court approval is secured (if applicable)

If you reach a settlement with an insurance provider and sign the release, the insurer generally has a set period, often 21 to 30 days, to issue payment.

In specific cases involving minors or adults under guardianship, New York courts (like those in Queens or Monroe County) may need to review and approve the settlement before payment is authorized.

How Long After Settlement Will You Get Paid in New York?

Once all paperwork is signed and submitted, you can usually expect payment within three to four weeks. Under New York's general guidelines, insurers typically issue checks within 21 to 30 days after receiving the signed release.

However, delays can happen, especially if there are errors in the paperwork or missing approvals. Here are some real-world factors that can affect timing:

• Internal insurance company delays
• Backlog in local court systems, particularly in high-volume courts like Bronx County
• Missing documentation or incomplete lien resolution

If everything proceeds smoothly, your attorney will receive the settlement check, deposit it into a trust account, and begin the disbursement process shortly after. But even small administrative hiccups can push things back a few extra days.

The Role of Insurance Companies and Their Timing

Insurance companies carry a lot of control in the payout timeline. In New York, most settlements come from insurers rather than directly from the individual or business responsible for the injury. That means your check depends on their internal process.

New York-based insurance companies typically follow this sequence:

1. Receive and review the signed release
2. Confirm approval from supervisors or legal teams
3. Process payment through finance departments
4. Mail or electronically transfer the check

This seems simple on paper, but in practice, paperwork may sit in different departments. If your claim involves a serious injury or large payment, the process may take longer due to added layers of review.

Medical Liens, Legal Fees, and Deductions From Your Check

Once your attorney receives the settlement, they don't immediately cut you a check. Instead, certain deductions must be made. These expenses vary from case to case but usually include:

• Attorney's fees based on your retainer agreement
• Reimbursement for out-of-pocket case costs (e.g., medical records, expert evaluations)
• Outstanding medical liens from providers
• Repayment to insurance carriers, such as Medicaid or workers' comp

In New York, medical providers and health insurers can file liens against your settlement to recover the cost of care. For instance, a hospital that provided emergency treatment after an auto crash may legally claim a portion of your payout.

Your attorney will handle negotiations with lienholders and ensure all legal obligations are resolved before disbursing your funds.

Special Circumstances That Delay Settlement Payouts

Not every personal injury case ends with a straightforward check. Some situations introduce extra steps or complications that delay payment.

Here are a few examples specific to New York:

• Probate Court Involvement: If the injured party dies before the settlement is finalized, the funds may need to go through probate. Courts in counties like Erie or Nassau often require estate representatives to file formal petitions before funds are released.
• Minors and Guardianship: When the injured party is under 18, New York law requires court approval of the settlement. Judges must ensure the amount is fair and that funds are placed in a protected account until the child turns 18.
• Structured Settlements: These agreements involve payments over time rather than one lump sum. Approval and setup can add weeks to the timeline.

Each of these scenarios can delay your check, and they're designed to protect vulnerable parties and ensure compliance with New York law.

What You Can Do to Speed Up the Process

While you can’t force an insurance company to cut a check overnight, you can help keep things moving. Many delays come from missing documents, unsigned forms, or unresponsive parties.

To avoid unnecessary holdups:

• Return all signed documents promptly
• Confirm your contact information is up to date
• Respond quickly to requests from your attorney or insurer
• Notify your lawyer about any medical treatment still being billed
• Ask about potential liens or reimbursement claims upfront

For injured New Yorkers dealing with life disruption after a serious crash or workplace accident, staying organized can shave days, sometimes weeks, off the payout timeline.

Legal Deadlines and Statutory Considerations in New York

New York law sets strict deadlines for filing personal injury claims. If you miss the filing window, your right to recover compensation may disappear, even if you had a valid case.

Here's what to know:

• General Statute of Limitations: 3 years from the date of injury
• Claims Against a Government Agency: 90 days to file a Notice of Claim

These timelines affect not only your right to sue but also when and how settlements are paid.

Missing a deadline often means missing out on compensation. That's why injured individuals in New York should speak with an attorney as soon as possible after an accident.

Receiving the Final Settlement Check

Once all fees are paid, liens resolved, and disbursements calculated, your attorney will issue your portion of the settlement. This usually happens by check or direct deposit, depending on what you prefer.

In New York, attorneys are required to place settlement funds into a client trust account before issuing any payments. This protects your money and ensures it gets handled according to legal and ethical rules.

Most final disbursements include a detailed breakdown that shows:

• Total settlement amount
• Attorney fees and case costs
• Medical or insurance lien payments
• Net payment to the client

Some clients in New York choose direct deposit through banks like Chase or M&T, while others request paper checks. Either way, funds are typically released within a few days of final reconciliation.

Know the Timeline, Plan Ahead

Getting a settlement check in a New York personal injury case takes time. Even after the hard part, negotiating and agreeing to terms, you still need to work through insurance reviews, court approvals, and legal deductions. Every case moves at its own pace.

At Horn Wright, LLP, our attorneys guide you through each stage so you understand what to expect. We push for timely payments, handle delays, and keep you informed so you're never in the dark about your money. Reach out to learn more about how we can help you move forward.