How are personal injury settlements paid out after a Memphis car accident? Reaching a fair settlement is a significant accomplishment, but it’s not the end of the road. The payout process for personal injury settlements involves several steps and can take some time to complete. Understanding what happens after you agree to a settlement can help you set realistic expectations and make informed decisions about your financial future.
Receiving Settlements for Injury Cases
Most personal injury cases in Memphis end in settlements, not trials. A settlement is a legally binding agreement between you and the at-fault party (or their insurance company) to resolve your claim for a specific amount. In exchange for the settlement funds, you agree to release the other party from further financial liability related to the accident.
Some of the factors that will likely influence the timing of a settlement include:
- The severity of your injuries
- The strength of your evidence
- The amount of available insurance coverage
- The skill and reputation of your attorney
- The cooperativeness (or lack thereof) of the other party
The more serious your injuries and the clearer the other party’s fault, the higher your potential settlement will likely be. However, reaching a fair agreement involves extensive negotiations and sometimes even mediation sessions with the other side. Your attorney will handle these discussions on your behalf, fighting for the best possible outcome while keeping you informed about the status of your claim.
Payout Process for Injury Settlements
Once you and the other party agree to a settlement amount, the money doesn’t appear in your bank account immediately. There are several steps in the payout process, which can take weeks or even months to complete:
Signing the Release
The insurance company will require you to sign a release form stating that you accept the settlement and waive your right to pursue further legal action. Your attorney will review this document carefully to ensure it’s fair and accurate.
Processing the Check
After receiving your signed release, the insurer will issue a check for the settlement amount. This check will typically be made out to you and your attorney, as your lawyer will deduct their fees from the total.
Paying Liens and Bills
If any health care providers, insurance companies, or government agencies have placed liens on your settlement (meaning they’re entitled to reimbursement for accident-related services), your attorney will need to negotiate and pay these liens before disbursing funds to you.
Deducting Legal Fees
Most personal injury attorneys work on a contingency fee basis, which means they will only get paid if they win money for you. If your case settles, your lawyer will deduct their fee (usually around 33 percent of the total) and any case-related expenses from your settlement.
Issuing Your Check
Once you pay all liens, bills, and fees, your attorney will issue you a check for the balance of your settlement. They’ll also provide a detailed accounting of all deductions and payments made from the total settlement amount.
The entire payout process can take anywhere from a few weeks to several months to conclude, depending on the complexity of your case and the responsiveness of the other party. Your attorney will keep you updated on your settlement status and work diligently to get your money to you as quickly as possible.
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Understanding Injury Compensation
A personal injury settlement aims to provide comprehensive financial recovery for both the economic and non-economic losses you sustained due to the accident. This means your settlement check represents money for:
- Past and expected future medical expenses
- Lost wages and reduced earning capacity
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Property damage (e.g., vehicle repairs)
It’s crucial to work with an experienced Memphis personal injury attorney who can accurately calculate the full value of your losses and negotiate a settlement that truly reflects what you’ve been through. If you accept a lowball offer or settle your case too quickly, you may have far less money than you need to cover your ongoing expenses and losses.
Your lawyer can then file a personal injury lawsuit to seek compensation according to the amount of damages suffered. They will judge the settlement offer before you sign a settlement agreement. If amenable, lawyers would also structure settlements based on capability and/or insurance policies.
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At Gatti, Keltner, Bienvenu & Montesi, PLC, our law firm knows how overwhelming the legal process can be after a serious accident. You’re dealing with painful injuries, mounting medical bills, time away from your job, and an uncertain future. The last thing you need is the stress of fighting with the insurance company. Similarly, trying to work through the settlement payout process independently can be difficult when done alone.
Our legal team can help you get the compensation you deserve despite the difficulties of the personal injury claim process. Our personal injury lawyers are here to support you and help you get the economic, non-economic, and punitive damages available. Contact us today or call (901) 526-2126 for a no-obligation, free consultation.