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How Are Personal Injury Settlements Paid Out?

Personal Injury Settlements Paid Out

If you have recently been in an accident and suffered injuries, your entire life now revolves around the accident. Not to mention the consequences in the future. Now you must take care of your health and do everything you can to recover from the injuries. You also must focus your energy on your claim. Of course, you hope to get good news from your attorney that you can count on the claim money to start rebuilding your life. Belleville personal injury attorneys Hipskind & McAninch know what to do, whether it's your first time dealing with a personal injury claim or not. You are likely not familiar with the process that receiving your payout requires. Read on to find out the steps that you must follow to receive the settlements.

Understanding the Personal Injury Payout Process

Understanding what needs to happen will make it easier for you to know that things are moving in the right direction. Here are some important steps that must happen.

Signing the Release Form

Once a settlement amount is agreed upon by all parties, attorneys, and insurance companies, there will be paperwork to sign. Among these documents, the most important one is the release. In it, you sign saying that you will not be seeking further compensation from the insurance company or the other part. You also, release them from any other liability or damages.

Surprisingly, even after all parties agree on the settlement amount, there may be some disagreements on the release form. This could result in delays in the money moving forward.

The Insurance Company Writes the Check

Once you sign the release form, it is sent to the insurance company of the party at fault. It is up to them to write the settlement check. The check will be sent to your attorney’s office for both you and them. It is important for the lawyer’s name to also appear on the check so that they can deposit it into the law firm’s legal trust account.

Your Attorney Works with Your Providers

It is quite common for people to owe a part of the settlement fund to other parties. These debts, or liens, are usually for medical providers. It will be up to your attorney to negotiate with each of them to reduce the amount they will receive. In most cases, liens against your settlement will come from:

Medical Providers

Your health insurance will likely not cover all your medical expenses. Thus, you may owe money to doctors, particularly if you are dealing with long-term care.

Government Health Insurance Programs

If Medicaid paid some of your medical bills, the government has a right to pursue compensation from the final settlement amount you will receive.

Group Health Insurance Providers

If your own insurance paid for your medical bills and they filed a valid lien. Then, you may have to reimburse them for whatever amount it is. Your attorney will research to determine whether your insurance company will have to receive reimbursement.

Once your attorney finishes negotiating with all parties, they will receive their funds. However, this may require some back and forth and take some time.

You Receive the Money

You will now meet with your attorney and finalize the case. All documents need a review before you sign the final paperwork. Once that is done, you will receive your check. This can be in paper form or directly to your account.

If the amount is large enough, you may either receive a lump sum payment or opt for multiple payments. Although both options will likely be tax-free, you may have to pay some taxes if you make money through investments with the funds you receive from the settlement.

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