Learn what types of expenses a personal injury settlement covers and how victims get paid.
When it comes to compensation for a personal injury, the first question on many people’s minds is “How much can I get?” They are understandably concerned about the value of any possible future settlement because it affects their ability to get the medical care they need and to support themselves in the future if they are unable to return to work due to their injury.
However, it is important to realize that the amount of compensation you win in a settlement is not necessarily the amount that goes into your pocket. Prior to accepting any settlement, you should go over the payment process with your attorney in detail to make sure you really understand what you are agreeing to.
Here is some basic information about how personal injury settlements are calculated and paid.
What Your Settlement Covers
Personal injury settlements are designed to provide compensation for all the damages you have suffered as a result of your injury. This includes:
- Past medical bills
- Future medical bills
- Lost wages
- Lost earning potential
- Pain and suffering
In rare cases involving extremely reckless or negligent behavior on the part of the liable party, punitive damages may also apply.
Who Gets Paid Out of Your Settlement
Before any of your personal injury settlement goes into your pocket, various debts and obligations must be paid from it. Your personal injury attorney will take a percentage of the settlement for his services. He will also reimburse his office for any expenses associated with preparing your case, such as ordering medical records, paying expert witness fees, etc. You may also need to pay off medical liens from your personal injury settlement. If appropriate, your attorney can help negotiate for the lien holders to accept a lower figure so that this expense does not eat up too much of your settlement.
How You Receive Your Settlement
If you have won a very large settlement, you may have the option of taking it in a lump sum or as a structured settlement. With a structured settlement, your portion of the settlement is broken into a series of periodic payments. The terms are flexible so you can decide how large you want each payment to be and whether you want to be paid monthly or at some other interval. Structured settlements are especially beneficial for individuals who need to keep their assets and income low to qualify for public assistance such as Medicaid.
Need More Information?
If you would like personalized advice about your personal injury case, please contact The Law Office of Fernando D. Vargas now.
