Short Answer

In North Carolina, your lawyer deposits the settlement check into a trust account, pays approved liens and costs, and then issues your net check after you sign the required paperwork. You usually sign a Release of All Claims, a final settlement statement itemizing fees, costs, and lien payoffs, and any lien-related acknowledgments. If Medicaid, Medicare, or certain health plans paid your bills, those reimbursements must be resolved before disbursement.

Understanding the Problem

You resolved a North Carolina personal injury claim for a lump sum and want to know how you will receive your money and what you must sign. Here, your firm identified EMS and a health insurer as lien holders, negotiated the insurer’s claim, determined a separate provider had no valid lien, and set a meeting to review your final settlement statement and check.

Apply the Law

Under North Carolina law, settlement funds are placed in the attorney’s trust account and disbursed only after mandatory liens and reimbursements are handled. Medical providers can assert statutory liens against injury recoveries, and those liens are capped to protect the injured person’s share. Government programs (Medicaid/Medicare) and the State Health Plan have statutory reimbursement rights that must be satisfied from the settlement before funds are released. The main forum is not a court; this is handled by your attorney’s trust accounting process. There is no fixed statewide deadline to disburse, but lawyers generally wait for the settlement check to clear and for lien amounts to be confirmed.

Key Requirements

• Signed release: You sign a Release of All Claims in favor of the at‑fault party/insurer so the claim is fully resolved.
• Resolve statutory liens: Pay valid medical provider liens from the settlement within the 50% cap after attorney’s fees, allocated pro rata when needed.
• Satisfy government reimbursement rights: Resolve Medicaid, Medicare, and North Carolina State Health Plan claims before disbursing client funds.
• Final settlement statement: Review and sign an itemized accounting showing gross settlement, attorney’s fee, case costs, lien/reimbursement payoffs, and your net.
• Trust account disbursement: Your lawyer releases your check (or wire) after the insurer’s payment clears and all payoff amounts are finalized.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Medical provider liens) - lets providers assert liens on personal injury recoveries if they furnish requested records/bills.
• North Carolina Gen. Stat. § 44-50 (Distribution/cap) - caps total medical lien payments to no more than 50% of net recovery after attorney’s fees and requires fair, pro rata sharing among lienholders.
• North Carolina Gen. Stat. § 108A-57 (Medicaid subrogation) - requires repayment to Medicaid from injury settlements per statute and federal law.
• North Carolina Gen. Stat. § 135-48.37 (State Health Plan recovery) - gives the State Health Plan reimbursement rights against third-party recoveries.

Analysis

Apply the Rule to the Facts: Your lawyer will deposit the lump-sum settlement check into the firm’s trust account and provide you a final settlement statement. The EMS lien is a medical provider lien; it must be paid within the 50% cap after attorney’s fees and shared fairly with other valid medical lienholders. The health insurer’s reimbursement claim was negotiated and will be paid per the agreed reduction and applicable law. Because the other provider did not present a valid lien, no funds are withheld for it, and the remaining balance is paid to you.

Process & Timing

1. Who files: No court filing is required for an adult personal injury settlement. Where: Your attorney’s office in North Carolina. What: You sign a Release of All Claims, the final settlement statement, and any lien/repayment acknowledgments. When: After the insurer’s check clears the trust account and lien/reimbursement amounts are confirmed.
2. Your attorney pays approved liens (e.g., EMS, valid providers), government reimbursements (Medicaid/Medicare/State Health Plan as applicable), and agreed health plan claims, then confirms payoffs. Timing varies by lienholder; government programs can take longer to finalize.
3. Your attorney issues your net settlement check (or wire) and provides copies of the signed release, settlement statement, and proof of lien/reimbursement payments.

Exceptions & Pitfalls

• Minors or incompetent adults: Court approval and special handling may be required; funds can be deposited with the Clerk until properly released.
• Government programs: Medicaid, Medicare, and the State Health Plan have statutory recovery rights that must be paid before you receive your net funds.
• Provider lien validity: Providers must properly assert liens and furnish records/bills when requested; an invalid or unperfected lien should not be paid.
• 50% cap and pro rata sharing: Total medical lien payments cannot exceed 50% of the recovery after attorney’s fees; paying one lien in full can violate this rule.
• Premature disbursement: Don’t accept funds before lien/reimbursement obligations are finalized; this risks later collection or offsets.

Talk to a Personal Injury Attorney

If you're finalizing a personal injury settlement and want to understand your paperwork, liens, and payout timeline, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.