Reaching a settlement agreement in your personal injury case can be a huge relief, but people often have questions about how much money they will receive and how the process works. Knowing how settlements are divided can help you better understand the process so there won’t be any surprises when your case is over. The personal injury lawyers at Thomas, Conrad & Conrad can guide you through it every step of the way and help you understand how your settlement will be allocated.
Types of Personal Injury Settlements
A structured settlement is paid out over time, and money is received at various intervals, such as monthly, quarterly, or annually. This is a good option for those who require ongoing medical treatment over an extended period of time. The terms of a structured settlement can be quite flexible, but generally cannot be modified once they are set.
With a lump sum settlement, an injured victim receives their share of the settlement all at once. This option is beneficial for those who have good financial management skills or intend to invest the money. Discussing these settlement options with your personal injury lawyer and a financial advisor can help you determine which one will best suit your needs. Regardless of whether you choose a structured settlement or lump sum, any medical bills, liens, legal fees, and attorney fees will be paid before you receive your portion.
It can be challenging to predict how long a personal injury case will take from start to finish. It’s important to keep in mind that if the insurance company decides to appeal a court decision, payment could be delayed for a significant amount of time.
The Settlement Process
After you have accepted a settlement offer, you must sign a document that releases the at-fault party and their insurer of all liability. This document will also outline all terms of the settlement, which can sometimes be lengthy and hard to understand. This is just one reason it’s vital to have an experienced personal injury attorney handle your case. Your lawyer will thoroughly review the release and clarify any murky details. If you are dissatisfied with any part of the agreement, your personal injury lawyer can request revisions before you sign it. Once the release is signed, the insurance company will issue a settlement check and your attorney will deposit it in an escrow account.
Medical Bills And Liens
Your attorney will pay any unpaid medical bills and liens from the settlement. This may include certain debts that are unrelated to the accident or your injuries, such as child support arrears. If your medical bills are high and the insurance policy limit isn’t enough to cover them, it is possible to negotiate a reduction in the amount you owe.
Attorney Fees And Legal Costs
Once all accident-related bills and liens have been paid, your personal injury lawyer will deduct their fees and other legal costs. In most personal injury cases, attorney fees are contingent upon whether you win your case and receive a settlement or judgment. Attorney fees for personal injury cases range anywhere from 30% to 50%, depending on the complexity of the case and specific circumstances. Good personal injury attorneys try to make sure clients receive a fair amount from any settlement or judgment. If your lawyer is not successful in obtaining compensation for you, you will not have to pay attorney fees under a contingency contract.
Legal costs are separate from attorney fees – they may include the cost of court filings, fees for copies of medical records, investigation services, and hiring experts like accident reconstructionists and medical professionals. These costs are often quite low if the claim is settled, but can be higher if your case goes to court. Make sure to discuss these costs with your attorney before they begin working on your case, as you may be responsible for these costs even if you don’t recover compensation for damages.
Your Compensation
After all outstanding accident-related bills and liens are paid, the remainder of the settlement or award goes to you. Typically, your attorney will issue a check and send it to you in the mail or via electronic bank account transfer. In most cases, proceeds from personal injury settlements are non-taxable, although there are exceptions to this rule. If you have any questions at all about the claims settlement process and how it may affect you financially or personally, don’t hesitate to discuss your concerns with your lawyer.
Contact A Personal Injury Attorney In Eastern Pennsylvania
Our personal injury lawyers at Thomas, Conrad & Conrad are dedicated to helping injured victims throughout eastern Pennsylvania. If you have questions about your personal injury settlement or you’ve been hurt in an accident caused by someone else’s negligence, call our Bath office at 610-867-2900 or contact us online to schedule a free consultation today.
Contact A Personal Injury Attorney To Learn More
Recovering adequate compensation is vital to protecting your health and financial security. At Thomas Conrad & Conrad, our personal injury lawyers help injured victims throughout eastern Pennsylvania put their lives back together and recover the compensation they deserve. Call our Bath office at 610-867-2900 or contact us online to schedule a free consultation today.