If another person causes an accident that injures you, you can take legal action. In these cases, you might wonder how personal injury settlements pay out and what to expect from the process. Settlements help cover the financial burdens you have experienced. However, going through the settlement process can feel overwhelming if you don’t clearly understand the necessary steps. By learning how personal injury settlements work and what factors influence the amount you receive, you can feel more prepared to take action, make informed decisions, and confidently plan for the future.
How Much of Your Personal Injury Settlement Can You Receive?
When you settle a personal injury case, the total amount covers the costs and losses you experienced. However, you won’t take home the entire settlement because certain costs will be deducted, including:
- Legal Fees – Lawyers deduct their fees from your settlement if you hire them. Most work on a contingency basis. As a result, they only get paid if you win. You agree on their percentage at the start of your case.
- Medical Expenses – Your settlement will cover outstanding medical bills if your healthcare provider agrees to wait for payment. These are handled through liens, ensuring providers receive their share directly.
- Other Costs – Additional expenses, like court fees or costs for gathering evidence, may also come out of your settlement.
After these deductions, you keep the remaining amount. The exact amount depends on your settlement size and the costs involved in your case.
How Are Personal Injury Settlements for Minors Paid Out?
When minors are involved in personal injury cases, the payout process is handled a little differently. Courts aim to protect the interests of children and ensure their settlement is used for their benefit.
- Court Approval – In most cases, a judge must approve the settlement to confirm it’s fair for the minor.
- Structured Payments – Instead of giving a lump sum, the court often arranges structured payments. This means the money is paid out over time, usually when the child reaches a certain age, like 18 or 21.
- Trust Accounts – Sometimes, the funds are placed in a trust account managed by a parent or guardian. The court may require oversight to ensure the money is spent appropriately.
The Payout Process for Injury Settlements
Once you reach a settlement agreement, the payout process typically follows these steps:
- Signing the Agreement – Both parties must sign the settlement agreement. This document states the payout terms and releases the at-fault party from further claims.
- Payment from Insurance – The at-fault party’s insurance company usually pays the settlement to your lawyer. Depending on the agreement, they might send the funds in a single check or split it into installments.
- Distribution of Funds – Your lawyer will deposit the settlement into a trust account. From there, they will pay off any liens or other expenses and remove their fees before giving you your share.
This process ensures all parties are paid fairly and in the correct order. If you’re unsure about how settlements are handled, our team at Turbak Law Office, P.C. can answer your questions and handle the process for you.
Receiving Settlements for Injury Cases
It’s important to know that personal injury settlements vary based on the details of your case. The total amount you receive depends on factors like:
- The severity of your injuries
- The cost of your medical treatment
- Lost wages from missed work
- Pain and suffering
Some settlements are paid out as lump sums, meaning you receive the full amount immediately. Others are structured settlements, where the money is paid over time. Structured settlements are common in large cases or those involving minors.
If you are trying to decide which option is best for you, our personal injury attorney can explain each type of settlement’s benefits and potential drawbacks.
What Happens If the At-Fault Party’s Insurance Denies Liability?
Sometimes, the at-fault party’s insurance company may dispute your claim and refuse to cover your settlement. This can happen if there’s disagreement over who caused the accident or the severity of your injuries. If liability is denied, you may need to provide additional evidence to support your claim, such as:
- Medical records
- Statements from witnesses
- Expert testimony
In some cases, filing a lawsuit may be necessary to secure the compensation you need for your losses and expenses.
Steps to Take While Waiting for Your Settlement Payout
While waiting for your settlement payout, there are steps you can take to prepare for financial recovery:
Track Your Expenses
Keep a record of your resulting medical expenses, lost wages, and any out-of-pocket costs related to your injury. This keeps you organized and ensures you can offer accurate details if required during the settlement process. Having this type of documentation can provide insight as to where your money has gone.
Communicate with Creditors
If bills are piling up, notify creditors or healthcare providers about your situation. Letting them know you’re waiting for a settlement can prevent added stress and may even allow you to negotiate payment plans. Most companies appreciate honest communication and will work with you to find temporary solutions.
Avoid Large Purchases
Manage your finances carefully. This helps to ensure you can cover essentials until you receive your settlement. While it is tempting to make big purchases, staying focused on necessities can help you avoid financial strain. Once the settlement is finalized, you will better understand what you can afford without risking your financial stability.
Being proactive can help reduce stress during this waiting period and position you for a smoother recovery once you finalize your payout. Taking these small but significant steps can make a big difference in how you manage this time.
Contact Our Personal Injury Lawyer in Watertown, South Dakota
Working with a knowledgeable legal team can provide you with the advantage you need to achieve a fair settlement for your case. Our team at Turbak Law Office, P.C. has the experience to handle every part of your case, from negotiating settlements to ensuring you receive the funds you’re entitled to. Call us today at 605-886-8361 or contact us online to get started with a free consultation.