When you receive a settlement check after a car accident, slip and fall, or other personal injury incident, it is normal to wonder how long you can keep the check without cashing it. Many injury victims worry that depositing too soon may affect outstanding medical bills, while others simply misplace the check or wait until they understand the full financial picture. Although holding a check for a short time is usually not a problem, waiting too long can create serious issues.
Understanding the rules that apply to settlement checks, insurance payments, and bank policies can help you avoid delays in receiving the compensation you are legally entitled to recover. This guide explains how long you can keep a check before it becomes stale, what happens if it expires, and the steps to take if you need a replacement.
1. Most Settlement Checks Expire Within 90 to 180 Days
In many personal injury cases, insurance companies issue checks that are valid for a fixed period of time. The most common expiration window is 90 to 180 days. This is called a “stale date.” Once a check becomes stale, the bank may refuse to honor it.
The expiration period is usually printed on the check itself and often appears as:
- “Void after 90 days”
- “Valid for 180 days”
- “Void after six months”
Even if the check does not list a specific date, many banks follow internal policies that limit acceptance after the six-month mark. This is because the Uniform Commercial Code allows banks to treat a check older than 180 days as stale, meaning it may be declined.
2. Why Personal Injury Settlement Checks Have Expiration Dates
Insurance companies issue thousands of payments each year. Stale dates help insurers keep accurate accounting records and prevent fraud or unauthorized deposits.
In personal injury cases, checks may include funds for:
- Pain and suffering
- Medical expenses
- Lost wages
- Property damage
- Out-of-pocket costs
If the check is not deposited promptly, insurers may close the claim internally. This can complicate the process of reissuing a new check later.
3. What Happens if You Try to Cash an Expired Check
If you wait too long and attempt to cash a stale check, several things can happen:
- The bank may decline the deposit.
- The check may be returned unpaid.
- Processing may take much longer than usual.
- The insurer may require a formal request before reissuing a new check.
In some cases, the insurer may need to reopen the claim file or verify that no additional liens or outstanding medical bills have appeared. This can cause significant delays.
4. Settlement Checks Must Often Clear Liens Before Deposit
In personal injury cases, settlement checks sometimes must be coordinated with medical providers, health insurance plans, or state agencies. These entities may file liens to recover medical costs. In Florida, certain medical providers can assert a lien under specific circumstances, especially when treatment is related to an accident covered by insurance.
Under Florida Statutes Section 627.736, Personal Injury Protection benefits require insurers to pay for reasonable and necessary medical care. Providers may sometimes rely on these protections when seeking payment from settlement proceeds. Delaying your deposit can create confusion about whether liens have been resolved.
5. Do Settlement Checks Ever Become Void Permanently?
Yes. If you hold a check beyond the expiration date and an extended period of time passes, the insurer may cancel the check and transfer the funds back into the company’s account. In some cases, unclaimed funds may be turned over to the state.
Florida requires companies to report certain unclaimed property under the Florida Uniform Unclaimed Property Act, which is contained in Chapter 717 of the Florida Statutes. Although this process typically applies to long-abandoned assets, a personal injury check that remains unclaimed for a lengthy period may eventually be reported.
Contact a Boynton Beach Personal Injury Lawyer at Green Personal Injury Lawyers for a Free Consultation
Although it may seem harmless to hold onto a settlement check, waiting too long can lead to banking issues, delayed payments, or even the need to request a replacement check. Most personal injury settlement checks expire within 90 to 180 days, and banks may refuse to honor checks that are considered stale.
If you have questions about a settlement check, medical liens, or the next steps in your personal injury case, contact Green Personal Injury Lawyers today. A Boynton Beach personal injury lawyer can review your situation and help protect your financial recovery. Free consultations are available.
Green Personal Injury Lawyers
3487 Woolbright Rd. Boynton Beach, FL 33436
(561) 362-2009