How Are Personal Injury Settlements Paid Out?

You were hurt in an accident that you did not cause. Now you have medical bills, missed time at work, and you are battling anxiety or depression. Seeking financial compensation for your losses is the legal right you have. Once you prove your losses, though, you may be unsure how to expect to receive that compensation.

How are personal injury settlements paid out? There are several potential ways that you may receive your settlement with assistance from a skilled Nashville personal injury lawyer. Call Selvidge Injury Law for a free consultation to discuss your legal options today.

How You Could Receive Your Personal Injury Settlement

Ultimately, how your settlement is paid out depends on the terms of the award. Not every claim allows for flexibility. However, there are several common ways the at-fault party’s insurance company pays out settlements to the victim.

• A single payment is made to you. Many personal injury cases settle in this way. A single payment is made to you, called a lump sum payment. This is often a check that is mailed to your attorney’s office, and then they disburse your part of the settlement, often times via check. Once paid, the case is over.
• Structured payments are another route. In this method, you will receive a smaller payment on a structured basis. That means you will receive payments monthly, quarterly, or annually, as set by the court. The amount of the settlement is paid to you in payments over time instead of at once. This is usually only in cases involving catastrophic injuries involving a life-care plan and/or future medical treatment is a major concern.

You may have the right to choose which method is best for you. There are various situations where one or the other option may be better for you. Your personal injury attorney will help you compare your options in these areas.

What You Can Control in Negotiations

The negotiation for your settlement is not just about the value you will be paid, though that is what most people think about when seeking compensation. Your attorney should negotiate several factors related to your payment:

• How much you will receive in a payment, both as a lump sum or as a structured payment plan.
• The terms of the settlement include whether you must agree not to discuss the settlement with others. This is called a nondisclosure agreement.
• An agreement that your debt is settled in full with the settlement, which means you cannot seek additional compensation for the incident

Depending on the specifics in your case, your lawyer may recommend one or the other method. The key here is to know what to expect and what limitations you face going forward.

Who Receives the Check?

In most situations where you hire an attorney, your attorney will receive a check from the insurance company. Your attorney will handle any subrogations or liens that you owe, as well as other debts that you may owe, such as medical providers. This is paid directly from your settlement on your behalf, by your attorney. 

You will then receive a payment for the losses remaining. Your attorney fees and other costs are paid first before you receive compensation. This should be outlined in full in the contract for legal representation in the very beginning of the legal process.

How Personal Injury Settlements Are Paid Is Up to You

To some degree, you can work with your attorney, Adam W. Selvidge, to have such settlements fairly paid to you. Negotiations are a critical part of this process, and a skilled lawyer will become the ideal advocate for you throughout the legal process. Do not assume you have to accept what the other party is offering. Let your accident attorney in Nashville help you.