Detailed answer — what to expect and the usual steps

Below is a practical, step‑by‑step explanation of how settlement funds typically flow in Georgia after the insurer issues a settlement check. This describes common scenarios and legal issues you should expect. This is educational only and not legal advice.

1) Who is the check made payable to?

Insurance companies can make the settlement check payable to one or more of the following:

• You alone (the injured person).
• You and your attorney jointly.
• Your attorney alone (if the attorney requested this and you signed a fee agreement authorizing it).
• Other parties with a legal interest (medical provider, lienholder, or an entity asserting subrogation).

If the check is payable only to you, you can usually deposit it into your personal bank account and then pay any obligations yourself. If the check is payable jointly to you and your lawyer or to your lawyer only, the law firm will normally place it into the firm’s client trust (IOLTA) account and then distribute funds after paying fees and expenses and resolving liens.

2) Your attorney’s role and the trust account

Most contingency fee agreements in Georgia authorize the lawyer to accept settlement proceeds and place those funds into a client trust account. From there, the attorney will:

1. Deposit and clear the check (bank holds can last several days).
2. Deduct the attorney’s approved fees and litigation expenses as set out in your fee agreement.
3. Pay any valid liens, subrogation demands, or court‑ordered distributions.
4. Issue the remainder to you (often by check or electronic transfer).

Attorneys in Georgia must follow professional rules about client funds and must provide an accounting of deductions when you request it.

3) Liens, subrogation, and other claims that reduce your net recovery

Several entities may claim part of the settlement before you receive your net funds:

• Medical providers: Hospitals and doctors may assert liens or billed balances. Georgia law provides procedures for certain provider liens; see the Official Code of Georgia Annotated (OCGA) for statutes that govern hospital and provider claims. For general reference on Georgia statutes, see the OCGA site: https://www.legis.ga.gov/legislation/ocga.
• Health insurers and ERISA plans: Private health insurers and employer plans often assert subrogation or reimbursement rights to recover what they paid for your medical care. If the insurer that paid your medical bills is a federal ERISA plan, special federal rules may apply to how much they can demand.
• Medicare and Medicaid: If Medicare or Georgia Medicaid paid benefits related to your injury, federal and state law require reimbursement for conditional payments. These agencies must be put on notice; unresolved Medicare/Medicaid obligations can delay or reduce your distribution.
• Other creditors: If a court has ordered garnishments or there are court‑ordered distributions (for example, in a minor’s settlement or bankruptcy), those must be resolved first.

Because of these claims, the gross settlement amount is often larger than the net amount you will receive. Your attorney should negotiate, reduce, or litigate improper claims when possible, and must explain each charge.

4) Special situations that affect timing and delivery

Several common situations change how and when you receive funds:

• Minors: In Georgia, settlements for minors often require court approval or a guardian ad litem and the funds are placed in a protected account or under a structured settlement. Your attorney will explain any court steps needed before distribution.
• Guardianship or conservatorship: If a guardian handles the case, the court may have to approve the settlement and the distribution.
• Wrongful death: Proceeds are distributed according to Georgia wrongful death rules and any court orders; distribution can be more complex and may require judicial oversight.
• Multiple payees: If other payees (e.g., mortgage lender, lienholder) are named on the check, those payees must endorse it or take separate steps, which can slow distribution.
• Fraud concerns or disputed liens: If a lien is disputed, the attorney may escrow the contested portion until resolution.

5) Practical timeline

Typical timeline after check issuance:

1. Insurance issues check (payable to you and/or attorney).
2. Bank clearing period (varies; usually a few business days up to 7–10 days for large checks).
3. Attorney pays fees, expenses, and valid liens; disputes or negotiations on liens can add time.
4. Net funds sent to you (check, wire, or other agreed method).

If Medicare/Medicaid is involved, securing a final demand or conditional payment resolution from the agency can add significant time (sometimes weeks to months).

6) What you should ask your attorney before the insurer issues the check

• Who will the check be made payable to?
• Will the firm deposit the check into a client trust account? When will I receive my portion?
• Which liens or third‑party claims do you expect to be paid from the settlement, and how much is likely to be withheld?
• Will any payments be sent directly to creditors instead of to me?
• Do we need court approval (minor, guardianship, or wrongful death) before disbursement?

7) If something goes wrong

If the insurer issues a check but a payee refuses to endorse, or a lienholder takes more than you believe they are owed, raise the issue with your attorney immediately. Attorneys can interplead funds into court or negotiate reductions. If your attorney is unresponsive or you suspect mishandling of client funds, you can contact the State Bar of Georgia for guidance on fee disputes or trust account issues.

For Georgia statutes and further research, consult the Official Code of Georgia Annotated at the Georgia General Assembly site: https://www.legis.ga.gov/legislation/ocga. Specific lien and distribution issues may be covered in Title 44 (property and liens) and other parts of the OCGA.

Helpful hints

• Get the fee agreement in writing. It should explain how fees, costs, and disbursements will be handled when the insurer pays.
• Ask for a written settlement distribution worksheet showing gross recovery, fees, lien amounts, and net to you.
• Notify Medicare, Medicaid, and any health plans early so conditional payments and reimbursement issues can be resolved sooner.
• If you are a minor or under guardianship, plan for court steps and possible delays before any money can be released to you or a custodian.
• If the settlement check names multiple payees, get an explanation and timeline for how each payee will be handled.
• Keep copies of every settlement check, bank deposit slip, and final accounting from your attorney for your records and tax reporting.
• If you disagree with a lien or a charge, ask your attorney about negotiating or litigating that claim before distribution.