How Are Personal Injury Settlements Paid Out?

Anyone injured by another person or party has the right to seek compensation through a personal injury claim. For clear liability claims with proper medical documentation of injuries, most of these claims can be resolved directly with the insurance adjuster without having to take them to court. The injured party's attorney should prepare a comprehensive demand letter putting the adjuster on notice of the specific injuries and damages that their insured caused. A skilled Norcross personal injury attorney can help injured parties and their families seek the compensation they deserve for their injuries.

What is a Settlement?

Most injury claims end with a negotiated settlement prior to the time that the case makes it to the courtroom. With a settlement agreement, the injured party agrees to accept a specific sum of money in exchange for dropping or not pursuing their lawsuit now or in the future. The settlement pays for their injury damages, such as medical expenses, lost wages, pain and suffering, and scarring and disfigurement.

Settlements are often reached because they have many benefits for both sides. For example, settlements:

  • Require less time and money than going to court
  • Let the details of the case remain private and not go on a public court record
  • Prevent the victim(s) from having to testify and endure the stress of a court case
  • Give both sides more control over the outcome of the claim by mitigating their risks

Suppose a case doesn't settle out of court. In that case, a judge or a jury will determine who is liable for the victim's injuries and how much compensation their damages are worth.

How Are Personal Injury Settlements Paid Out?

Personal injury settlements can be made in a lump sum payment or in a structured payment plan. However, most are a single lump sum. It's best to consult with a Norcross personal injury lawyer before agreeing to any type of settlement in any amount to be sure you are making the right decision.

The insurance company will typically mail your settlement check to your attorney's office. From there, your attorney will negotiate and pay any outstanding liens or bills against your claim- such as medical bills or other rights to reimbursement. This increases your net recovery and helps you to be made whole. The attorney will also subtract their contingency fees and any other out of pocket expenses you agreed to pay when you hired them. Once everyone else is paid what they are due to receive, you will receive the remainder of the settlement, usually in the form of a check. When you receive your compensation, you are free to do with it as you please.

Will I Need to Pay Taxes on My Settlement?

Typically, personal injury settlements aren't taxable as income. However, you should always consult with your Norcross personal injury lawyer and your tax advisor to find out if this is true in your situation.

Questions about Injury Settlements? Contact a Seasoned Norcross Personal Injury Attorney Today

If you have questions about personal injury settlements, our Norcross personal injury lawyers have answers. At Banks, Stubbs & McFarland, our attorneys represent a variety of personal injury claimants, fighting for the compensation they deserve after suffering serious injuries. Start your claim today by requesting a no-obligation personal injury case consultation. To schedule yours, call 770.887.1209 or contact us online.