Learn how to estimate how much you stand to gain from filing a personal injury claim
Have you been injured in an accident that was not your fault? Have you already been informed by an attorney that you do indeed have a strong case for compensation? Before you hire that attorney and proceed with a personal injury claim, make sure you understand how much cash you stand to gain out of the whole deal. This knowledge could have a big impact on your decision to accept a reasonable settlement offer on your own, attempt to renegotiate the settlement with an attorney’s help, or proceed to litigation.
Step 1: Calculate Your Possible Damages
First of all, you obviously need to know how much compensation is available in your case. This can be calculated by totaling up your:
- Past medical bills
- Estimated future medical bills
- Lost wages
Multiply this figure by a factor of 1.5 to 5 to account for pain and suffering and arrive at the total compensation you may be eligible to receive. Use the lower end of the scale if the injury was minor with a short recovery period and use the higher end for serious or permanent injuries involving significant pain and a lengthy or ongoing recovery.
Step 2: Estimate Your Costs
Next, you need to figure out how much of your potential compensation will be directed towards various expenses associated with the case. Expenses could include:
- Legal Fees: In order to build a strong case, your attorney may need to hire special investigators, request your medical records, get a doctor’s narrative report, or pay a photographer to document your injuries. There will be court costs to cover as well, such as filing fees and deposition transcript fees. Typically, your attorney will cover all these costs for you with the understanding they will be paid back after the settlement is won.
- Attorney Fees: Your attorney will also need to be paid for the work they have put into the case. Typically, the attorney will receive about a third of your settlement as their fee, but this percentage could rise if the case goes to litigation.
- Medical Liens: If any other party covered any part of your medical expenses (such as an insurer, doctor, or hospital), they may have a lien against your settlement. This means that they will be reimbursed out of the settlement before you see a penny. Often, with the help of an experienced personal injury attorney, the amount of the medical liens can be reduced to enable you to keep more of your compensation.
- Lawsuit Funding Repayment: Finally, if you plan to take out any loans against your future settlement in order to cover your everyday expenses, you will obviously need to repay these with interest when you win your case.
Step 3: Subtract
Subtract your costs from your potential compensation and you will have a rough estimate of how much cash you could receive from your personal injury claim.
For a more detailed analysis of your case, consult with an experienced attorney such as Fernando D. Vargas.
