After you sign the final release in your Missouri car accident settlement, the insurer will issue your settlement check once payment processing and any outstanding liens or obligations have been resolved.
Three main factors affect how quickly you get paid:
- Insurance company speed: Some insurers cut checks in days, others take weeks for approvals
- Bank holds: Large settlement checks are often subject to 5-10 day holds for verification.
- Medical liens: Outstanding medical bills and health insurance claims must be resolved first
Understanding each step helps you know what to expect and why certain delays occur.
What Steps Happen Before You Get Paid?
Getting your settlement money involves several required legal steps. Understanding this process helps you know what to expect and why it takes time.
Sign the Release and Final Paperwork
The release is a legal document where you agree to accept the settlement money in exchange for dropping your claim. This contract closes your case permanently once signed.
Missouri law sometimes requires your spouse to sign even if they weren’t in the accident. At Beck & Beck Missouri Car Accident Lawyers, our legal team reviews every word with you before you sign anything to protect your rights.
Insurer Issues the Settlement Check
After receiving your signed release, the insurance company processes payment. Most settlement checks are made payable to both you and our law firm together.
Some insurers offer wire transfers instead of checks. Wire transfers can be faster when available.
Deposit to Attorney Trust Account for Clearance
As your attorneys, we must deposit your settlement check into a special bank account called an IOLTA. This stands for Interest on Lawyer Trust Account.
The IOLTA keeps your money separate from our firm’s funds. The Missouri Bar monitors these accounts to protect client money. We cannot touch these funds until they are fully cleared.
Bank Clearance and Available Funds
Banks place holds on large deposits, such as settlement checks. This is a standard security measure that typically lasts 5-10 business days.
Banks may place holds on deposited checks, which is outside our control. Our Missouri auto accident attorneys monitor the trust account daily and will notify you as soon as funds are available.
Fees, Costs, and Lien Resolution
Before you get paid, several bills must come out of your settlement:
- Attorney fees: Based on your signed agreement with us
- Case costs: Filing fees, medical records, expert witnesses
- Medical liens: Bills from hospitals and doctors who treated you
- Health insurance claims: Reimbursement to your insurance company
We negotiate to reduce these liens whenever possible under Missouri law. This puts more money in your pocket.
Final Payment to You
Once everything clears and all bills are paid, the remaining money is yours. We provide a detailed statement showing exactly where every dollar went.
You can receive payment by check, wire transfer, or cashier’s check. Most clients get their money within 24-48 hours after clearance.
What Delays Settlement Checks in Missouri?
Delays are frustrating when you need your money. Most holdups have solutions, and we’ve handled them all before.
Release Errors or Missing Signatures
Simple mistakes can force insurers to reject your paperwork. Common errors include wrong dates, misspelled names, or missing spouse signatures.
These mistakes require new documents and re-signing. We double-check everything before sending to prevent this delay.
Medical Liens and Subrogation Holdups
A medical lien is a legal claim against your settlement by medical providers. Subrogation means your health insurer’s right to be repaid from your settlement.
Getting final amounts from Medicare, MO HealthNet, and private insurers can take weeks. We start this process early to avoid delays.
Court Approval for Minors or Wrongful Death
Settlements involving minors or wrongful-death claims in Missouri typically require court approval to protect vulnerable parties, which can lengthen the timeline.
We handle all court filings and paperwork for these cases. The delay is required by law.
Insurer Processing or Mailing Delays
Insurance companies sometimes create their own delays:
- Claims department backlogs during busy periods
- Multiple approval levels needed for large settlements
- Simple mailing errors or administrative mistakes
We follow up every few days when we see these delays happening.
Bank Holds on Large Deposits
Banks may place holds on deposited settlement checks, delaying access to the funds. Out-of-state checks may have longer holds than local ones.
We work with banks that understand legal settlements. This helps minimize hold times when possible.
Multiple Insurers or Policies to Coordinate
Some accidents involve multiple insurance policies, and you may need to decide whether to file an insurance claim with each one. This includes liability coverage, umbrella policies, or your own UM/UIM coverage.
UM/UIM stands for Uninsured/Underinsured Motorist coverage. This is your own insurance that covers you when the at-fault driver has insufficient coverage. Missouri law requires special procedures when multiple policies apply.
How Can You Speed Up Your Settlement Check?
You can take simple steps to avoid unnecessary delays. Small actions make big differences in timing.
Return Signed Documents Promptly
Sign your release paperwork as soon as you’re comfortable, but make sure you’ve properly evaluated whether to accept the first settlement offer. Use blue ink and check every page before signing.
Keep copies for your records. Return documents via email or overnight mail to avoid postal delays.
Share Health Plan and Provider Details Early
Early information helps us resolve liens faster. We need:
- Medicare or Medicaid ID numbers, if you have them
- Private insurance policy details and contact information
- Complete list of doctors and hospitals that treated you
- Any outstanding medical bills from your accident
The sooner we have this information, the faster we can work on your liens.
Confirm Names, Addresses, and W-9 if Requested
Your name on settlement documents must match exactly. This includes middle initials and any suffixes.
Some insurers or payors may request a W-9 for tax-reporting purposes on certain settlements. Address errors can delay check delivery, so verify everything is correct.
Request Wire or Overnight Delivery After Clearance
Tell us your preferred payment method early. Once funds clear and bills are paid, we can arrange fast delivery:
- Wire transfer: Same day delivery once cleared
- Overnight check: Next business day arrival
- Regular mail: Takes 3-5 business days
Do Missouri Laws Set Deadlines for Payment?
Missouri’s Unfair Claims Settlement Practices Act requires insurers to handle claims promptly. Insurance companies must acknowledge claims within 10 days and make decisions within 15 days of receiving all documentation.
However, the law doesn’t set specific deadlines like “must pay within 30 days” after settlement. It only requires “prompt” payment once an agreement is reached.
We document all communications to hold insurers accountable. Bad faith delays can lead to additional damages against the insurance company.
How Are Fees, Costs, and Missouri Liens Paid?
Missouri law governs how settlement funds get distributed. We provide a clear breakdown of all deductions from your settlement.
Here’s how a typical $50,000 settlement might be distributed:
| Item | Amount | Your Settlement After |
| Gross Settlement | $50,000 | $50,000 |
| Attorney Fee (33.3%) | -$16,650 | $33,350 |
| Case Costs | -$2,500 | $30,850 |
| Medical Liens | -$8,000 | $22,850 |
| Your Net Recovery | $22,850 |
Missouri’s hospital lien statute caps certain provider claims at 50% of your net recovery after attorney fees. We fight to reduce every lien legally possible to maximize your money.
Will I Owe Taxes on My Settlement?
Most car accident settlements aren’t taxable under federal law
Compensation for physical injuries and other damages is generally not considered taxable income.
There are a few exceptions where you might owe taxes:
- Interest earned on the settlement amount
- Punitive damages, which are rare in car accidents
- Lost wages portions in certain circumstances
We recommend consulting a tax professional about your specific situation. We don’t issue 1099 forms for non-taxable injury settlements.
What Special Situations Change the Timeline?
Certain cases have extra requirements under Missouri law that extend normal timelines. These situations need special handling, but we manage them regularly.
Minor settlements require a court hearing and guardian approval; this process protects children but adds 3-4 weeks to your timeline.
Wrongful death claims require court approval to ensure proper distribution to heirs, which can extend the settlement timeline.
Medicare and Medicaid recipients are subject to federal review requirements. If you have Medicare or MO HealthNet, those programs typically require review of medical payments before settlement funds are released, which can delay resolution of medical liens.
Workers’ compensation overlap happens when an accident occurs while working. We must coordinate with multiple insurance carriers, which can cause additional delays.
UM/UIM claims may need consent from your own insurance company before settling. This may delay the timeline.
We handle these complexities while keeping you informed throughout the process.
Missouri Auto Accident Law Firm With $105+ Million Recovered For Clients
At Beck & Beck Missouri Car Accident Lawyers, we focus exclusively on Missouri auto accident cases. We know exactly how to navigate the settlement payment process efficiently.
We track your settlement check from agreement to final payment. Our team pushes insurance companies to move quickly and resolves liens as fast as possible.
You won’t be left wondering where your money is. We keep you updated at every step and answer your questions promptly.
We are a family-run firm that helps Missouri accident victims. We have extensive experience helping Missouri accident victims and understand what you’re going through.
Contact us online for your free consultation. There are no fees unless we win your case.
FAQs
Can I Track My Settlement Check?
Yes, we request tracking information from the insurer and update you immediately when the check arrives and when funds clear for disbursement.
Why Is My Spouse Asked to Sign the Release?
Missouri law recognizes loss-of-consortium claims for spouses, so insurers require both signatures to fully close all potential claims arising from the accident.
Will the Check Be in Both My Name and My Lawyer’s Name?
Most settlement checks are made payable to both you and our firm, which is standard practice that ensures proper handling through our trust account.
Do I Have to Provide a W-9?
Some insurers request a W-9 for their records, though most personal injury settlements aren’t taxable income.
What if I Am on Medicare or Medicaid?
Medicare and Missouri’s MO HealthNet have automatic liens on accident settlements, which we’ll verify and negotiate before distributing funds.
Do Missouri Hospital Liens Have a Cap?
Yes, Missouri law limits hospital liens to 50% of your net recovery after attorney fees and costs are deducted.
Can I Get a Wire Instead of a Paper Check?
Yes, once funds clear and liens are resolved, we can wire your settlement directly to your bank account, usually the same day.
