After an accident, your injuries may put you out of work and drowning in medical expenses and other stresses.
You may be relieved when your attorney negotiates a favorable settlement on your behalf.
Now you may wonder, How are personal injury settlements paid out? Some people think that once a claim is settled, their settlement payout arrives immediately.
Understanding what to expect when it comes to your settlement payout will help you avoid unwanted surprises and disappointment.
This article explores how personal injury settlements are paid out in Texas.
How Is a Settlement Paid Out?
A settlement agreement may let you choose how you receive your compensation. Injured victims often choose between a lump sum or multiple payments.
You will want to discuss this issue with your attorney to understand how these settlement payout options may benefit you.
Lump Sum Settlement
A lump sum settlement means you receive the entirety of your settlement check in a single payment.
This may be ideal for those hoping to pay off past-due expenses and other bills.
Multiple Scheduled Payments
Multiple scheduled payments provide you with your settlement payout in a structured manner.
A structured settlement may be ideal for those looking to ensure they do not spend all their settlement at once.
It may be an excellent option for those hoping to supplement their income in the coming months or years with their settlement funds.
Who Else Is Entitled To My Settlement Funds?
Once a settlement is reached, you may wonder who else is entitled to part of your money.
Outstanding Bills and Liens
Settlement funds help pay off outstanding bills for your medical treatment. A medical lien may have been issued in the event of unpaid medical expenses.
A medical lien automatically receives a portion of any settlement to pay off outstanding balances. Your attorney may assist in negotiating these lien balances.
Personal injury attorneys usually work on a contingency basis.
Contingency means that a lawyer does not charge or collect any legal fees unless they obtain a settlement or judgment on your behalf.
Once a settlement is reached, an attorney receives a percentage of any settlement award according to a legal agreement with their client.
How Long Does It Take to Get My Settlement?
The amount of time it takes to receive your settlement payout depends on your case.
When it comes to insurance companies, Texas law requires companies to investigate claims and notify their acceptance or rejection of any claim within 15 days.
Insurance companies may extend this to 45 days, given sufficient explanation.
However, insurance companies must issue their check by the fifth business day after notification of claim acceptance.
Contact a Personal Injury Lawyer in Texas Today
The injury attorneys at the Zimmerman Law Firm P.C. assist and represent all personal injury victims in Waco, Texas, and the surrounding communities.
With a century of combined legal experience, we put our knowledge and resources to work for you. We understand that you may feel angry, confused, and overwhelmed.
We are with you every step of the way and handle everything so you can focus on your recovery.
You deserve to get the compensation that helps you and your family get back on the road to recovery. Let us help you.
Contact our office today for a free case evaluation with one of our personal injury attorneys.