How to Cash or Deposit Your Settlement Check and Explore Pre-Settlement Funding
by Toni Hipolito
After winning a personal injury case, cashing your settlement check may require special steps due to the size of the amount involved. If you have a bank or credit union account, you can deposit or cash the check there. However, be aware that banks may place a hold on large amounts until they clear. Alternatively, you can cash the check at the bank that issued it (the one listed on the check). Make sure to bring a valid photo ID, and note that non-account holders may incur a fee.
But before that check arrives, you might be facing financial stress due to the lengthy legal process. Pre-settlement lawsuit funding from TraumaLaw could provide the financial relief you need, helping cover medical bills, living expenses, mortgage, or car payments while you await the resolution of your case. This non-recourse funding means you’re not obligated to repay it if you don’t win your case.
What You’ll Need to Cash or Deposit Your Settlement Check
When it’s time to cash or deposit your settlement check, you’ll generally need the following:
- Proper Identification: A government-issued photo ID (such as a driver’s license or passport) is necessary to verify your identity.
- Endorsement: You must sign the back of the settlement check, authorizing it for deposit or cashing.
- Bank Account (Optional): If you prefer depositing the check rather than cashing it, you’ll need an active bank account. Some banks may place a hold on large checks, so it’s a good idea to inquire about their policies.
It’s important to note that your settlement check will typically be deposited into an escrow account before it’s fully disbursed. While most personal injury settlements are not taxable, portions of the settlement, such as punitive damages or lost wages, may be taxed. If you’re unsure, it’s wise to consult with a tax professional.
Options for Cashing Your Settlement Without a Bank Account
If you don’t have a bank account, there are still ways to cash your settlement check, though fees may apply. Your options include:
- Check-Cashing Services: You can visit a check-cashing service or payday loan store, where the check will be cashed for a fee based on a percentage of the check amount.
- Issuing Bank: Cashing the check directly at the bank that issued it (the bank name is printed on the check) is another option. You’ll need a valid photo ID, and be prepared for non-account holders to face a fee.
How Pre-Settlement Funding Works
The process of receiving your settlement can often take a while, leaving you in a financial bind, especially if your injury prevents you from working. Insurance companies are aware of this and may drag out the settlement process in hopes that plaintiffs will accept a lower offer due to financial pressure. Pre-settlement funding allows you to focus on healing while waiting for your case to resolve.
Here’s how it works:
- Eligibility: You must have a pending lawsuit and legal representation to qualify for pre-settlement funding.
- Quick Application: The application process takes just minutes, is free, and there are no hidden fees. Once submitted, a team member will assist you promptly.
- Approval Process: After consulting with your attorney, we’ll evaluate your case to determine whether you’re likely to win and what your potential settlement might be. If we have your attorney’s contact details, we can give you a response within 24 hours.
- Fast Funding: If approved, you can receive the funds in as little as 24 hours, via check or direct transfer.
Contact TraumaLaw for Pre-Settlement Funding
At TraumaLaw, we specialize in high-quality, transparent capital solutions for law firms and their clients. Our mission is to ensure that no one is denied their right to a fair legal battle due to financial constraints. Based in Los Angeles, we are committed to empowering individuals and law firms nationwide with innovative litigation options.
For more information, visit our comprehensive guide to pre-settlement funding, or reach out with any questions. We’re here to help you navigate the financial aspects of your legal journey.