If you’re unsure about how personal injury settlements are paid out, you’re not alone – it can be pretty confusing at first. But understanding the process can make things a little less daunting. Our New York personal injury lawyer breaks down the different ways settlements are paid out, so you’ll know what to expect here.
How Are Personal Injury Settlements Paid Out?
When you settle a personal injury claim, you’ll usually get paid in one of two ways: a lump-sum payment or a structured settlement. Each option has its own pros and cons, depending on your situation and financial goals.
What Is a Lump-Sum Settlement?
A lump-sum settlement is the straightforward option where you receive the entire settlement in one payment; this is typically the preferred option if you need immediate funds to cover medical bills, living expenses, or other urgent obligations. You also have complete control over how to use the money, whether it’s paying off debt, investing, or saving for the future.
The downside? It's easy to spend the money too quickly if it's not managed carefully.
What Is a Structured Settlement?
A structured settlement pays out your compensation in smaller, regular payments over time instead of all at once; this setup is usually ideal if you have ongoing expenses, like medical care, or if you want a steady income stream.
Here’s how you can customize these types of settlements:
- Payment schedule: Choose how often you get paid — monthly, quarterly, or yearly. For example, instead of receiving $100,000 upfront, you might get $10,000 monthly for ten months.
- Payment amounts: Payments can stay the same or increase over time to help with inflation or changing needs.
- Duration: Decide how long the payments will continue, whether for a set number of years or your lifetime.
How Are Personal Injury Settlements Paid Out?
When you settle a personal injury claim, you’ll usually get paid in one of two ways: a lump-sum payment or a structured settlement. Each option has its own pros and cons, depending on your situation and financial goals.
What Is a Lump-Sum Settlement?
A lump-sum settlement is the straightforward option where you receive the entire settlement in one payment; this is typically the preferred option if you need immediate funds to cover medical bills, living expenses, or other urgent obligations. You also have complete control over how to use the money, whether it’s paying off debt, investing, or saving for the future.
The downside? It's easy to spend the money too quickly if it's not managed carefully.
What Is a Structured Settlement?
A structured settlement pays out your compensation in smaller, regular payments over time instead of all at once; this setup is usually ideal if you have ongoing expenses, like medical care, or if you want a steady income stream.
Here’s how you can customize these types of settlements:
- Payment schedule: Choose how often you get paid — monthly, quarterly, or yearly. For example, instead of receiving $100,000 upfront, you might get $10,000 monthly for ten months.
- Payment amounts: Payments can stay the same or increase over time to help with inflation or changing needs.
- Duration: Decide how long the payments will continue, whether for a set number of years or your lifetime.
How Much Will Go in My Pocket?
While it’s impossible to give an exact number, the final amount will likely depend on attorney fees, case-related costs, and any outstanding debts or liens.
What Percentage Do Lawyers Take From Personal Injury Settlements?
Most personal injury lawyers work on a contingency fee, which means they only get paid if they win. Their fees typically range from 25% to 40% of your total settlement, but it’s usually 33%. Be sure to review your fee agreement upfront so you know exactly how much will go to your lawyer.
Are There Any Other Costs Associated with Personal Injury Cases?
Yes, there can be additional expenses that could impact your final payout. For instance, if your lawyer covers your medical bills upfront, they’ll be reimbursed from your settlement.
You may also have to pay filing and court-related fees, as well as any costs related to investigating your case.
How Much Will Go in My Pocket?
While it’s impossible to give an exact number, the final amount will likely depend on attorney fees, case-related costs, and any outstanding debts or liens.
What Percentage Do Lawyers Take From Personal Injury Settlements?
Most personal injury lawyers work on a contingency fee, which means they only get paid if they win. Their fees typically range from 25% to 40% of your total settlement, but it’s usually 33%. Be sure to review your fee agreement upfront so you know exactly how much will go to your lawyer.
Are There Any Other Costs Associated with Personal Injury Cases?
Yes, there can be additional expenses that could impact your final payout. For instance, if your lawyer covers your medical bills upfront, they’ll be reimbursed from your settlement.
You may also have to pay filing and court-related fees, as well as any costs related to investigating your case.
Frequently Asked Questions
How Much Should I Ask for in a Personal Injury Settlement?
There’s no concrete answer to this because it can depend on several factors, including, but not limited to:
- Severity of Injuries: The more severe your injuries, the higher the potential settlement amount.
- Medical Expenses: Calculate current and future medical costs related to your injury.
- Lost Wages: Consider any income lost due to your inability to work.
- Pain and Suffering: Factor in the emotional and physical toll of your injuries.
Consulting with an experienced personal injury attorney can help you calculate a fair and reasonable settlement based on your unique circumstances.
How Long Do Injury Settlements Take?
The short answer is it depends. Simpler cases may resolve within a few months, while more complex ones can take years.
It also comes down to the negotiation process with insurance companies and whether or not your case goes to court. Negotiations can sometimes be drawn out as both sides work to agree on a settlement, and if the case proceeds to trial, the process becomes even longer.
How Long Does It Take to Get a Personal Injury Settlement Check in New York?
Once your settlement is finalized and you’ve signed the release documents, it’ll typically take four to six weeks for you to receive your settlement check from your attorney. That said, occasional delays can occur depending on the situation. For more information, check out this blog post to see what factors can affect this timeline.
Frequently Asked Questions
Do I Use My Insurance for a Passenger Injury Claim?
If the driver’s insurance doesn’t fully cover your damages, you may need to file a claim with your own insurance; this could look like filing a claim under your personal injury protection (PIP) or medical payments (MedPay) coverage. However, your insurance should generally be a last resort — make sure to exhaust the options available through the driver’s insurance and any at-fault party’s liability coverage first.
What if the Passenger Wasn’t Wearing a Seatbelt at the Time of the Accident?
In New York, all passengers are required by law to wear a seatbelt. If a passenger wasn’t wearing one during the accident, they can still file a claim, but it could complicate things.
Under the state’s comparative negligence rule, the passenger’s compensation might be reduced if their failure to wear a seatbelt contributed to the severity of their injuries.
How to File a Passenger Injury Claim in New York
- File a No-Fault Insurance Claim: First, file a claim with the insurance of the vehicle you were in; this will cover your initial costs.
- Explore Additional Insurance Options: If no-fault coverage isn’t enough, you may need to file claims against the at-fault driver’s insurance or your own uninsured/underinsured motorist coverage.
- Determine if You Meet the Serious Injury Threshold: Make sure your injuries qualify under New York’s “serious injury” threshold.
- Submit Evidence and Documentation: Gather all relevant medical records, bills, and proof of lost wages to support your claim.
Contact Our Personal Injury Firm in New York, NY
If you’ve been injured and need help understanding how personal injury settlements work, Field Law Group is here to help.
We offer free, no-obligation consultations and are available 24/7 to answer your questions and guide you through every step of the legal process. Call 212-739-7278 or contact us anytime to discuss your case and explore your options.
Contact Our Personal Injury Firm in New York, NY
If you’ve been injured and need help understanding how personal injury settlements work, Field Law Group is here to help.
We offer free, no-obligation consultations and are available 24/7 to answer your questions and guide you through every step of the legal process. Call 212-739-7278 or contact us anytime to discuss your case and explore your options.
Field Law Group, P.C.
17 State Street, 40th Floor
New York, New York 10004
This website contains attorney advertising. Prior results do not guarantee a similar outcome, see Disclaimer.
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Field Law Group, P.C.
17 State Street, 40th Floor
New York, New York 10004
This website contains attorney advertising. Prior results do not guarantee a similar outcome, see Disclaimer.
Designed by PostcardMania
Field Law Group, P.C.
17 State Street, 40th Floor
New York, New York 10004
This website contains attorney advertising. Prior results do not guarantee a similar outcome, see Disclaimer.
Designed by PostcardMania