Are you in the middle of a lawsuit that is close to settling? 95% of lawsuits in the United States end in a Lawsuit settlement before trial. Although settlements compose the overwhelming majority of resolutions in these kinds of cases, many people involved in a lawsuit aren’t familiar with the process. 

Knowing what will happen after you settle will help you feel more confident as you reach the end of your dispute. Read on to learn what the lawsuit settlement process is and what you should expect along the way.

Entering a Lawsuit Settlement Agreement

When you have your lawsuit settled it must be reduced to writing. Oftentimes, this takes the form of a settlement agreement. What is a settlement agreement and why is it important? Whether you are the plaintiff or the defendant, a settlement agreement sets forth the terms, conditions, and obligations of each party.

What must each party do to fulfill its requirements under the agreement? How soon must these parties act to fulfill these obligations? What must the attorneys for the parties do to resolve the case? What will happen if one party fails to uphold their end of the bargain?

The answers to these questions will all be answered in a well-written agreement pending settlement.

Providing Payment Information Lawsuit Settlement Process

If you are the plaintiff in a lawsuit, you’ll likely need to provide your payment information to help ease the process. This will usually be in a settlement agreement but you need to ensure it is accurate so that you receive your settlement funds. 

Sometimes plaintiffs will need their settlement money sooner than they receive it. When this happens, they may decide that getting an advance of cash from a lawsuit funding company is best for them. Before you give your payment information to the other side, speak to your attorney about the best way to receive these funds.

While a bank wire is often the quickest way to receive your money, you may opt for a check instead. Be sure that it’s certified by a reputable bank so that you know the check’s drawer has the money to cover the amount on the check!

Executing a Release

One of the best parts about a settlement is that it marks the end of your dispute. Whether you are settling your case pre-suit or after years of litigation, a settlement means each side goes their way. 

To ensure that each party finishes dealing with one another, it’s common for each party to execute a release. A mutual general release is where each side agrees to give up their right to file a claim against the other side for anything in the past up to the date of signing the release. 

The language in this document is important because it sets forth the extent that each party releases the other for their respective claims. 

Understanding the Lawsuit Settlement Process

The lawsuit settlement process can be a topic of concern for even the most confident plaintiff or defendant. Despite the unknowns that exist in a lawsuit and settling one, learning the in’s and out’s of the settlement process is a great way to calm your fear and anxiety.

Check out our blog post section for other helpful tips to begin putting to use in your life today!