How Are Personal Injury Settlements Paid Out in New York?
Settled your injury case? Let’s get you paid.
Winning compensation is a big step. But we know you won’t rest easy until that settlement money is actually in your hands. We get it.
There are two ways personal injury settlements are paid out: lump sum and structured settlements.
Lump sum payouts get you the full amount at once. This allows maximum flexibility but requires budgeting a large influx of cash.
Structured settlements provide incremental payments over time – even lifetime payouts. This ensures steady income but less access to the total upfront.
We’ll look at the options together and determine what makes the most sense for you.
Receiving Your Personal Injury Settlement
Once a settlement agreement is reached in your personal injury case, there are a few steps before the money lands in your hands:
- First, you’ll sign a release officially accepting the settlement terms, which will specify details like the payment amount and any third parties entitled to a portion.
- Then, the insurance company will issue the settlement check to your attorney’s office, not directly to you. This allows your lawyer to handle distributing the funds appropriately.
- Your attorney may negotiate down outstanding medical bills or liens related to your injury treatment costs, using the settlement money to resolve these debts.
- Lastly, your lawyer will also deduct any agreed-upon legal fees and court costs from the total before cutting you the remaining check. This ensures all case-related expenses and fees are paid, leaving the net settlement amount for you.
While it takes some logistics behind the scenes, your attorney has your back in making the process as smooth as possible. With the legal work done, collecting your compensation is the rewarding final step on the road to recovery.
Weighing the Types of Settlement Payouts
Once we lock down that final settlement number, the next decision is how you’ll be paid. There are pros and cons to different payment structures.
Lump Sum Payment
A one-time, lump-sum payment provides the full settlement amount upfront. It’s usually the most popular form of payout. This allows complete control over the money for major purchases, debt payoff, or savings.
But the flip side is you’ll be responsible for managing a large influx of cash wisely. Not to mention, the entire amount is taxable income in that tax year. This could push you into a higher tax bracket.
Structured settlements provide payouts in increments over a number of years through an annuity. You get investment protections and guaranteed income. Unlike lump sum payments, structured payments spread out the tax liability over time since income is received incrementally. But there’s less flexibility, and payouts stop if you pass away.
Our personal injury lawyers will advise on the best route based on your needs and future financial plans.
Don’t Leave Money on the Table – Maximize Your Settlement With a Personal Injury Lawyer
You deserve every penny you are owed. The insurance companies will try to shortchange you, but we’ll fight to ensure you are fully compensated for your injuries. We know how to navigate the legal system to get you the maximum settlement payout.
Our personal injury attorneys will clearly explain your options and help you decide what’s best for your situation. We will handle every aspect of your case with compassion and dedication so you can focus on your recovery. Contact us at Held, Held & Held now for your free consultation.