How Are Personal Injury Settlements Paid Out? 

If you are pursuing a personal injury case, you may have questions about the settlement process. How are personal injury settlements paid out? The answer can vary based on the terms of the settlement and several other factors. However, two common ways of paying out settlements are through a lump sum or structured payments. 

Larry Wall Trial Law offers guidance for victims navigating personal injury cases in Wichita, KS. 

How Lump Sum Payments Work

Lump sum payments are one of the more common methods of paying out personal injury settlements. This involves the defendant providing the plaintiff with a single payment in the full amount of the settlement.

However, this does not mean the plaintiff keeps the full amount. Their attorney would first deduct their contingency fees from the payment, and then the plaintiff would pay any other expenses, such as medical liens and additional bills that have arisen from the accident. 

After paying all necessary parties out of the lump sum payment, the plaintiff would generally keep the remainder of the settlement check. Some portions of personal injury settlements may be non-taxable, such as compensation for injuries or reimbursements for medical bills. 

How Structured Payments Work

Structured payments are another common method of paying out personal injury settlements. The plaintiff would receive the settlement amount in installments over a set period. They might receive the installments monthly, quarterly, or annually, depending on the terms of the settlement agreement. 

Structured settlements may be beneficial for individuals facing ongoing expenses related to a personal injury accident or who require a steady income stream due to an inability to work. The plaintiff may have the opportunity to negotiate the settlement amount, schedule, and duration during the settlement process. However, the attorney’s fees and other necessary expenses would still be subtracted from the amount. 

When Would You Receive the Settlement? 

Along with wondering how personal injury settlements are paid out, you may also wonder when they are paid out. The answer can vary on a case-by-case basis. Some settlements pay out within 30 to 60 days of signing the agreement, but the exact timeline depends on factors such as:

• The insurance company’s processing speed
• Whether you have medical liens or other expenses that first need to be resolved out of the settlement award
• Whether the court needs to approve the settlement

If you have questions about the settlement timeline, your attorney may be able to answer them for you. They can also communicate with relevant parties on your behalf to determine why certain delays may be happening. 

Gain Clarity About Personal Injury Cases in Wichita, KS

Understanding how personal injury settlements are paid out can help you feel more confident entering a personal injury case. You may have other questions about this process, such as how a fair settlement offer is evaluated and what portion of a settlement award you might be able to keep. 

Larry Wall Trial Law represents accident victims throughout Kansas. Request a free consultation by calling 316-265-6000.