How Are Personal Injury Settlements Paid Out?
One of the most crucial things to do to get your life back on track after an accident is to pay the outstanding hospital bills and recover lost wages. But unfortunately, many don’t understand the process of getting their lives back to normal, and hence end up struggling with the long-term implications of the accident.
If this is your current situation, this detailed post will answer all your questions. What’s more, the experienced personal injury lawyers at LA Century Law are willing and able to help you receive fair compensation. Attorneys can evaluate your case to ascertain whether you have a valid claim and then guide you appropriately.
How Is a Personal Injury Settlement Issued?
Your settlement’s mode of payment will depend on your preferences. Generally, you’ll choose between a structured or lump sum payment.
With a lump sum settlement payout, you’ll get the full settlement in a single payment at the same time. You’ll get the advantage of liquidity and can choose your preferred way to invest the money. Moreover, you also get to detach yourself from the concluded case, allowing you to recover completely from the incident that caused your injuries.
On the other hand, a structured payment doesn’t offer the benefit of availing your entire settlement amount, and you can’t invest the money earned at your discretion. Instead, a qualified settlement broker may design the qualified funding asset to meet your present and future needs. The most outstanding benefit of this approach is that it offers a sense of financial security.
You should consider your long-term goals and money management skills. If you’re worried about mismanaging a lump sum amount or prefer the more secure long-term, regular payments, you may go for a structured settlement. Reach out to our personal injury attorneys if you don’t know the best payment structure for you.
How Much Should You Expect as Personal Injury Settlement?
Whether you go for a lump sum or structured payment, you’ll receive a tax-free payout. However, your potential financial compensation varies based on various factors, including:
The insurance company’s policy limits
If an insurance company is paying in bad faith, you don’t have to accept their offer. However, your decision will depend on your lawyer’s assessment of your claim, which reflects on the settlement draft. The amount you’ll possibly receive should reflect the severity and scope of the victim’s injuries and any outstanding legal fees.
Amount spent on hospital bills
The amount you’ve already paid to receive medical care after the accident will significantly affect the possible compensation from your personal injury claim. You’ll prove this amount by presenting the relevant treatment documentation and receipts, so ensure you handle all the necessary papers with care. An attorney can negotiate and ensure you recover the amount spent.
The amount of lost income
The settlement fund must also cover the income you lost while recovering from the injury. Compensation may include the time you spent in bed or physical therapy and your future lost income if the injuries force you to stay off work for some time.
Medical bills and liens
After receiving the settlement check, multiple parties may rightfully claim a fraction of your award. For instance, the healthcare facility that paid for your medical services upfront will have a medical lien against your compensation. So it’ll automatically earn their portion from your settlement to clear the debts.
You may also have to deal with health insurance lines, mechanics liens, and employer liens relevant to your settlement. Dealing with all these isn’t a walk in the park, but our attorneys can negotiate with the involved lienholders to ensure you remain with a substantial amount.
Legal and attorney’s fees
After paying all the liens against your settlement, the next step will involve fulfilling any outstanding attorney fees and legal expenses. Reputable law firms like LA Century Law charge contingency-based fees, which means you’ll not pay anything until you get the financial reward. Once you’ve been compensated, your lawyer’s cut will be a percentage of the total award that you’ve already agreed upon.
The payment will depend on your agreement with the personal injury attorney. The remaining compensation will be yours to keep after paying off all your debts and lines.
How Long Does the Settlement Check Take to Arrive?
This will depend on the aspects of your case and other factors like how long the insurance company’s accountant takes to cut the check. However, insurers must meet the time limits and deadlines imposed by state laws.
Generally, you may have to wait for up to two weeks before receiving your check in the mail after it’s been awarded. If it takes longer than this, the insurer may be guilty of prolonging your payment in bad faith.
Frequently Asked Questions
Am I allowed to reject a settlement offer?
Absolutely! You can reject any settlement offer that doesn’t match your expectations after filing an injury claim with an insurer or bringing a lawsuit against the negligent party that caused you injuries.
Can you reopen a settled claim?
Most of the time, the case will conclude after you’ve settled a claim and received your settlement check. Since you can’t legally reopen the case or initiate further negotiations for a different amount, you’ll want to ensure that the settlement can adequately cover your losses and injuries before you accept.
What’s the minimum settlement amount?
There are no maximum or minimum limits to the amount you’ll receive as an injury settlement. Every case has its unique strengths and things at stake, and the amount will depend on the nature of the plaintiff’s injuries, fault, and the time spent on negotiations.
Discuss with A Reputable Personal Injury Attorney
You’re entitled to a fair personal injury settlement if someone hurt you or caused an accident through negligence, but the process may not be as straightforward as you would expect. Involving the experienced personal injury attorneys at LA Century Law can make things simple for you. Reach out to us, and you’ll find an expert to take you through the process.