How are personal injury settlements paid out?

Personal injury settlements are usually paid in one of two ways: as a lump sum or through structured payments. Each option has its own benefits and considerations for your financial recovery.

At Grossman Green PLLC, our Louisville personal injury lawyers are dedicated to guiding injured people in Louisville through every step of their personal injury cases, ensuring you receive the compensation you deserve. Keep reading to learn more about how personal injury settlements are paid in Kentucky, then give us a call at (502) 657-7100 to schedule a free case consultation.

How are personal injury settlements paid out?

Lump sum payments

A lump sum payment provides the net settlement amount in one payment. This approach allows victims to recover for losses like medical bills, lost wages, or other financial obligations all at once. Lump sum payments are common in personal injury cases because they provide quick access to the full compensation.

Structured payments

In some cases, settlements are paid out over time in installments. This is often used for larger settlements, which can provide financial stability by distributing funds over several years.  Also, structured settlements can be used with minors so the money can be invested until the child reaches an age of majority. Structured payments may benefit individuals who are concerned about managing a large sum responsibly, need ongoing financial support, or lack the capabilities to manage their own finances due to age or injury.

Possible deductions from your settlement

Before the final settlement amount reaches you, several deductions may occur. These typically include attorney’s fees and case-related expenses, and medical liens.

Attorney’s fees

Personal injury attorneys, including those at Grossman Green PLLC, often work on a contingency fee basis, meaning we only get paid if you win. The agreed-upon percentage is deducted from your settlement.

Medical liens and expenses

If your medical bills were covered by health insurance or you received treatment on a lien, those costs must be reimbursed from your settlement. Your attorney will negotiate with healthcare providers to reduce these amounts whenever possible.

Case-related expenses

Expenses incurred during your case, such as court filing fees, expert witness costs, deposition costs, and investigative services, may also be deducted.

Outstanding debts or liens

If you have outstanding debts, such as child support or other government-issued liens, you may need to address them before funds are disbursed.

Overview of the settlement process

The settlement payment process begins after a personal injury claim is resolved through negotiation, which can occur before a lawsuit is filed, during litigation, or even after a verdict has been reached. Settlements are designed to compensate victims for their losses, including medical expenses, lost wages, pain, and suffering. Here’s what typically happens after a settlement is reached:

1. Settlement agreement and paperwork
   Once both parties agree on a settlement amount, they sign a legally binding agreement outlining the terms. This document ensures the defendant (or their insurance company) pays the agreed-upon amount, and you release the defendant from future liability for the injury.
2. Distribution of funds
   After the settlement is finalized, the payment is typically processed within 30 days, though timelines may vary depending on the insurer and case specifics. The funds are sent to your attorney, who places them in a trust or escrow account until all obligations are settled.

Grossman Green PLLC supports your financial recovery

At Grossman Green PLLC, we understand that waiting for a settlement payout can be stressful, especially when you’re dealing with medical bills and other financial challenges. Our team works diligently to ensure your settlement is processed efficiently and fairly. Here’s how we help:

• Clear communication: We explain each step of the settlement process and ensure you understand what to expect.
• Negotiation of liens: Our attorneys negotiate with healthcare providers and lienholders to maximize the amount you receive.
• Efficient disbursement: Once funds are available, we promptly distribute your portion, so you can focus on your recovery.

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