Collecting Car Accident Settlements

Many people who have won a car accident lawsuit and are awarded damages by the court believe that their battle is over and they will immediately receive a check for the settlement amount from the party at fault. However, this is seldom the case.

How Long Does it Take to Receive the Settlement?

The time period generally depends on whether you have received the damages through a settlement agreement or through a court trial. In the case of a settlement agreement a time period of 20-30 days is generally agreed upon in which the settlement amount has to be paid. It is also agreed that in the case of a delay in payment, the wining party is often authorized to collect interest over the payment amount. In other cases, the winning party can walk out of a settlement agreement when the damages are not paid in time and reinstate a trial in court.The clause of paying additional interest or further trial in court generally acts as a deterrent for the losing party to pay the damages on time.

When a trial in court awards damages to the winning party, the losing party can file a motion for a re-trial within 10-15 days of the judgement, depending on the state. The trial court generally disposes of such cases within weeks. If the losing party doesn't file a motion, they can still file an appeal against the judgement within 30-60 days of the judgement. The regulation in all the states is that the losing party doesn't have to pay the settlement as long as the appeal is pending. Resolution of the appeal may take one to two years and you can only expect to receive your settlement amount after this period provided the jury rules in your favor in the appeal court.

What if the Losing Party Doesn't Pay on Time?

When you are awarded a settlement for a car accident, the other driver's insurance company is generally the one who pays the settlement amount. The process in this case is very smooth as the experienced insurance companies do not want any penalties levied. Hence you can expect your payment within 15-45 days, unless the losing party's insurance company has filed a motion or an appeal against the judgement.

There may arise some cases when an individual or an organization may refurse to pay the settlement amount. Here a process called 'execution' on a judgement becomes applicable for collecting the settlement amount. In case of a corporate organization, a 'garnishment' is served to the bank where the organization holds accounts. The bank is then duty bound to deduct the said amount from the losing party's account and deposit this with the court for payment to you.

In the case of an individual, the garnishment can be served on the wages of the individual in addition to the bank account. The individual's employer generally deducts 25% of their wage and sends this amount to you. This continues till the entire settlement amount has been paid off.

There are various other execution processes available in different states. For all the available options it is advisable to consult a competentCar Accident Injury Attorneywho knows the processes applicable in your state.

If you have been injured in an automobile accident in the State of Missouri, contact a St. Louis Car Accident Attorney at The Hoffmann Law Firm, L.L.C. by calling (314) 361-4242 and scheduling a free and private consulation.