Detailed answer: How settlement funds are delivered and cleared in New Hampshire
This answer explains the common ways you will receive settlement money in New Hampshire and what typically happens after an insurance company issues a check. This is general information only and not legal advice.
Who the insurance company makes the check payable to
The first thing to check is the payee line on the insurance company’s check. Common possibilities are:
- A check payable solely to you (the claimant).
- A check payable to you and your attorney (a joint check).
- A check payable only to your attorney (less common unless the attorney negotiated to receive funds directly).
If the check is payable to you alone
You can endorse (sign) the check and deposit it. If you are represented by an attorney, the attorney will usually ask you to sign an authorization so the firm can either:
- receive the check on your behalf, or
- have you endorse the check and deliver it to the attorney to be placed into the firm’s client trust account (IOLTA/trust).
Attorneys are required to safeguard client funds and typically place settlement proceeds into a client trust account before paying fees and liens. See the New Hampshire Rules of Professional Conduct on safekeeping client property: New Hampshire Judicial Branch rules.
If the check is payable to you and your attorney (joint check)
Joint checks are common when a provider (for example, a hospital or medical provider) has a lien or when the insurer wants assurance that bills will be paid. A joint check generally requires both payees to endorse it before it can be deposited. Your attorney will typically explain how the money will be split, handle endorsements, and pay outstanding liens or expenses from the settlement proceeds.
If the check is payable to your attorney
When the insurer makes the check payable only to the lawyer or law firm, the firm must still follow the rules for client funds. The attorney will deposit the payment into a client trust account and provide you with a settlement statement showing fees, costs, and any liens or reimbursements deducted.
What happens after the check is deposited
Typical steps your attorney will follow after deposit:
- Place the funds in a client trust account (IOLTA) while clearing.
- Pay outstanding medical bills, liens, or statutory subrogation claims (for example, Medicaid).
- Deduct agreed attorney fees and reimbursable costs if the retainer allows.
- Provide you a written settlement statement/accounting that lists gross recovery, all deductions (fees, costs, liens, subrogation, reimbursements), and the net amount payable to you.
- Issue your payment (check, wire, or electronic transfer) for the net amount after all lawful deductions.
Timing: how long until you get your money?
Timeline depends on several factors:
- Bank clearing times. Even after deposit, a check may take several business days to clear.
- Identification or additional documentation the bank or insurer requires.
- Amount of negotiation and resolution of liens and subrogation claims (Medicaid, Medicare, health insurers, medical providers).
- Whether a release, satisfaction of liens, or payoff letters are required before funds can be disbursed.
Small, uncomplicated settlements can clear and be disbursed in a week or two. Complex matters with multiple lienholders or disputes can take longer.
Common deductions from your settlement
Expect your settlement to be reduced by:
- Attorney fees and costs (as set out in your fee agreement).
- Medical provider bills or negotiated lien payments.
- Subrogation or reimbursement claims (for example, New Hampshire Medicaid liens).
- Outstanding liens, hospital holds, or provider claims that must be satisfied before disbursement.
What to expect from your attorney in writing
Ask your lawyer to provide:
- A settlement statement (itemized accounting) that shows gross recovery and every deduction.
- Copies of any lien release or payoff letters after payment.
- A confirmation of the method and timing of your final payment.
What to do if you do not receive funds or you disagree with deductions
- Request a written accounting from the attorney if you have not already received one.
- Ask for copies of lien payoff receipts and communications with third-party claimants.
- If you suspect mishandling of trust funds, you may contact the New Hampshire Attorney Discipline Office or the New Hampshire Judicial Branch for guidance on attorney conduct. See New Hampshire Judicial Branch rules: https://www.courts.state.nh.us/rules/.
Special situations to watch for
- If Medicare or Medicaid may have paid for related medical care, federal and state rules may create mandatory reimbursement obligations. Contact your attorney about these obligations early.
- If the insurer issues a stop-payment or raises a coverage dispute after issuing a check, that can delay funds until the dispute resolves.
- Some providers will insist on being paid directly. This is why joint checks and direct-pay arrangements are common.
For information on how attorneys must handle client funds in New Hampshire, see the New Hampshire Rules of Professional Conduct regarding safekeeping property: https://www.courts.state.nh.us/rules/. For general state statutes and codes, use the New Hampshire Revised Statutes: https://www.gencourt.state.nh.us/rsa/html/index.html.
Disclaimer: This is educational information only and not legal advice. For advice about your specific situation, consult a licensed New Hampshire attorney.
Helpful hints — getting your settlement money smoothly in New Hampshire
- Read and keep a copy of your retainer/fee agreement so you know the attorney fee and cost structure.
- Ask your lawyer for an estimated timeline once the insurer issues the check.
- Request an itemized settlement statement before you accept the final distribution.
- Tell your attorney immediately about any bills, liens, or letters you receive from medical providers or government programs (Medicare/Medicaid).
- Keep originals or copies of any checks and deposit slips until you receive the final accounting and your net payment.
- If you want direct deposit of your net proceeds, ask the attorney whether they can transfer funds by wire or electronic payment and what (if any) bank information they will require.
- If you’re unsure whether a third-party claim is valid, ask the attorney to provide the legal basis and documentation for any lien or subrogation demand.
- If you do not have an attorney and the check is payable to you and your attorney, do not sign the check over to anyone without understanding why — get legal advice first.