After a lengthy legal process, receiving your settlement check should be a relief. But many injury victims in South Carolina aren’t sure what to do next. Knowing where and how to safely handle your check can help you avoid unnecessary fees, delays, or fraud.
At Stewart Law Offices, we help clients through every stage of their personal injury case, including what happens after the settlement. Here’s what to know about cashing a settlement check in South Carolina.
Understanding How Personal Injury Settlement Checks Work
A personal injury settlement check represents the compensation you’re owed after your case is resolved, whether through an insurance payout or court-ordered judgment. However, this check doesn’t go straight to you immediately after settlement.
In most personal injury cases, the insurance company issues the settlement check to your attorney’s trust account, not directly to you.
Under Rule 1.15(d), South Carolina Rules of Professional Conduct, upon receiving funds in which a client has an interest, a lawyer shall promptly notify the client and promptly deliver the funds the client is entitled to receive.
What Happens Before You Receive Your Settlement Check
Even after your claim is settled, there’s a brief waiting period before you can access the funds. Here’s what typically happens first:
Settlement Confirmation
Both parties sign the release forms, agreeing that the case is resolved.
Issuance of Funds
The at-fault party’s insurer mails the settlement check to your attorney.
Deposit and Clearance
Your lawyer deposits the check into a client trust account, where it must clear the bank (this can take several business days).
Deductions and Disbursement
From that trust account, your attorney pays any medical liens, outstanding bills, and legal fees. After those are resolved, the remaining funds are released to you.
This process ensures all obligations are properly met before you receive your final payout.
Where to Cash Your Settlement Check in South Carolina
When your settlement funds are finally in your hands, you have several options for cashing or depositing the check. The safest and most cost-effective choice usually depends on your personal banking situation.
Your Bank or Credit Union
If you already have an account, this is the best and safest place to deposit your check. Most banks won’t charge a fee, and they can handle large amounts securely. By federal law, the first $225 of your deposit is usually available the next business day. Larger amounts may be held for a few days to protect against fraud.
The Issuing Bank
You can also go to the bank listed on the check (like Bank of America or Truist). They may be able to cash it right away if you show a valid photo ID. Non-customers might pay a small fee, usually $8–$10. Policies vary by bank.
Retail Stores or Check-Cashing Services
Stores like Walmart or Check Into Cash in South Carolina can cash settlement checks, but they charge a fee, usually 1% to 3% of the check amount. This can get expensive, so only use this option if you don’t have a bank account and need the money fast.
Deposit into a New Bank Account
If you don’t have an account, opening one can save you money and give you safer access to your settlement. Bring your ID and your settlement letter to open a new account at any SC bank or credit union.
Using Your Settlement Money Wisely
A personal injury settlement is your financial reset.
- Pay outstanding debts or medical bills.
- Build an emergency fund.
- Avoid high-interest advance loans.
- Consult a financial advisor for long-term planning.
Most compensatory damages are tax-free, but punitive damages and interest are taxable.
Common Issues When Cashing a Settlement Check and How to Avoid Them
Even legitimate settlement checks can run into unexpected problems. One common issue is a bank hold, which often happens with large deposits while the bank confirms available funds. Verification delays can also occur as the issuing bank checks the authenticity of your payment.
Sometimes, mismatched names between your check and identification can slow down or block the process entirely. And if a check is lost or stolen, notify your attorney immediately so they can request a stop payment and reissue.
If you face any of these problems, contact your lawyer or bank before taking further action to avoid delays or potential fraud.
Get Help With a Settlement or Personal Injury Claim in South Carolina
Cashing your settlement check is the final step of a long process and one that still requires care. Stewart Law Offices helps South Carolinians recover and manage their settlements safely. Call us or fill out our online form for a free consultation. Our personal injury attorneys are here to guide you through every stage, ensuring every dollar goes where it should.
