Injured victims of negligence have the right to seek compensation for their losses. These losses are often referred to as “damages” and paid to you after an insurance company or the court awards them. Once you go through the process of proving your losses and receive approval of the Nashville injury claim, the funds are paid out to you. However, there are several ways they could be paid out in Tennessee.
Types of Personal Injury Settlement Payments
There are two main types of payments made in a personal injury settlement. The method used depends on your needs and the rules of the court. However, both methods can offer benefits.
Lump Sum Settlements
A lump sum settlement means you receive one payment for all of the damages owed to you. This is typically a large payment transferred to your accounts. It is straightforward. It gives you access to all of the funds owed to you right away.
This option may be best for those who are looking for that big payment to meet financial obligations or to cover future medical needs. Be sure you have a plan for using those funds wisely to spread out over time as necessary.
Structured Settlements
Structured settlements are like a payment plan set up to pay you a certain amount at a specific rate over time. It could be made over a few years or even several decades. You do not receive all of the money at one time, but it’s spread out instead.
This method is typical in larger settlements. It can be beneficial because it creates a steady stream of income to meet your needs on an ongoing basis. If you are likely to need ongoing medical care and support in your home, having this income can be critical. They can be modified and customized to fit your needs.
How Long Will It Take To Be Paid After My Case Settles?
Various factors play a role in the length of time it takes to receive the compensation owed to you. Most of the time, you can expect to receive funds or set up a schedule of payments within two weeks, though it can stretch to as long as several months. Your attorney may be able to provide more clarity on what applies in your situation. Do not forget that all of this hinges on you filing a claim within the statute of limitations.
Required Payments After You Receive Your Settlement
Keep in mind that some payments must be paid out of your settlement. These are funds that are owed to others, and you typically do not receive access to them.
Attorney Fees
The cost for your legal services is paid out before you receive the remainder of what is owed to you. This fee is provided to you upfront. Anticipate it to be a percentage of what you receive.
Medical Liens
If doctors or hospitals, or other medical providers, placed liens on your settlement because they are owed compensation, this is paid first, before you receive compensation. This may include the medical care costs incurred at the time of the accident.
Taxes
If taxes are applicable on your settlement, those taxes are submitted to the appropriate taxing authorities on your behalf. This may be applicable in situations where you receive compensation, such as punitive damages or future earnings.
Other Costs
Other costs may be paid for as well, including any costs you agreed to pay at the time of receiving payment. That could include, for example, out-of-pocket expenses for your case, such as expert testimony.
In all situations, your Nashville car accident attorney will help you determine the timeline for your case. Set up some time to speak to your lawyer.