The ultimate goal for your personal injury case is to get the fairest compensation you deserve. The process to get your settlement can be long and laborious. You may wonder how and when you are getting your settlement for your personal injury case in Georgia.
This blog will answer the question, “how are personal injury settlements paid out in Georgia?”
Personal Injury Settlements
Lump Sum
A lump sum is where you receive the whole amount in one payment. Personal injury settlement money is typically issued as a check and deposited into a lawyer’s account before being distributed to the client. This gives you immediate access to the whole settlement so you can use it to pay off any urgent debts or invest it as you like.
The advantage of a lump sum is the freedom it gives you. But it also comes with the risk of financial mismanagement. Without planning you could blow the money quickly and leave nothing for the future. And investing the lump sum can be risky especially if the market is bad.
Structured Settlements
Structured settlements spread the compensation over a period of time, with regular payments, usually monthly or annually. A structured settlement is an arrangement where the settlement money is paid out in regular installments over a period of time. This gives you a steady income stream which can be helpful if you have ongoing medical expenses or long term financial needs.
Structured settlements reduce the risk of spending the whole amount too quickly and protect you from bad investment choices. But they give you less immediate financial flexibility than a lump sum. You get smaller amounts over time which might not be enough for big unexpected expenses.
Settlement Amount Factors
Medical Expenses
Medical expenses are a big factor in determining the personal injury settlement amount. This includes past, present and future medical bills related to the injury. The more severe and long term the medical issues the higher the compensation for these costs.
Lost Wages
Lost wages are based on the income you have lost due to the injury. This also includes loss of future earning capacity if the injury prevents you from going back to work or affects your ability to do your job.
Pain and Suffering
Pain and suffering is for physical pain and emotional distress caused by the injury. This is a subjective measurement that can impact the settlement amount depending on how much the injury has affected your life.
Emotional Distress
Emotional distress is for psychological impacts such as anxiety, depression or trauma caused by the injury. This is evaluated along with pain and suffering but focuses more on mental health.
Loss of Enjoyment of Life
Loss of enjoyment of life is for the inability to do things or hobbies you used to do before the injury. This is for how the injury has reduced your quality of life.
Reduced Quality of Life
Reduced quality of life is for broader impacts on daily living. This includes permanent impairments, disfigurement or scarring that has changed your way of living and overall well being.
Punitive Damages
Punitive damages may be awarded if the defendant was grossly negligent or malicious. Punitive damages are often sought through a personal injury lawsuit to punish the defendant for gross negligence or malicious behavior. These damages are to punish the wrongdoer and deter similar behavior in the future. They are added to compensatory damages.
Personal Injury Settlement Process
First Steps
The personal injury settlement process starts by hiring an experienced personal injury lawyer. The lawyer will investigate the accident, gather evidence such as police reports, medical records and witness statements. This investigation will determine who is liable for your injuries and how much you should be compensated.
Filing an Insurance Claim
Your personal injury attorney will file the insurance claim on your behalf and send a demand letter to the insurance company. This letter will outline the accident, the responsible parties, and the amount of compensation being sought. Your lawyer will identify all possible sources of compensation and file claims accordingly
Negotiation and Settlement
During settlement negotiations your lawyer will handle all communication with the insurance companies. A settlement agreement is a legal and binding contract that outlines the terms and conditions of the settlement. This way you can focus on your recovery while your lawyer fights for maximum compensation. If a fair settlement is reached you will sign the agreement and the case is closed. If negotiations fail your lawyer will prepare for trial.
Trial
If the insurance company doesn’t agree to a fair settlement your lawyer will prepare the case for trial. Trials can take a year or more to be scheduled. Both parties usually try to avoid trial but sometimes it’s necessary to get fair compensation.
Signing Release Documents
Once a settlement is reached you will sign release documents prepared by the defense lawyer. These documents will outline the terms and conditions of the settlement. Make sure to review them with your lawyer as they are binding agreements.
Insurance Company Processing
After you sign the release documents the insurance company will process the release and send a check. This check will be sent to your lawyer’s office to make sure it’s properly handled.
Handling Settlement Liens
Your lawyer will handle any liens on your settlement such as outstanding medical bills or other debts. Personal injury settlement funds are managed by the lawyer to ensure all legal obligations are met before disbursing the remaining funds to the client. The settlement funds will be deposited into an escrow or trust account and the lawyer will pay off the liens before disbursing the remaining funds to you. This way all legal obligations are met and you get your rightful compensation.
Payout
Signing Release Documents
Once a settlement is reached you will need to sign release documents. These documents will outline the settlement terms and conditions. Make sure to review them with your lawyer as signing them is a binding agreement. Check for errors or unfavorable clauses before moving forward.
Insurance Company Processing
After the release documents are signed the insurance company will process the release. This will involve verifying the documents and issuing a check for the settlement amount. This process usually takes a few days. The check will be sent to your lawyer’s office to make sure it’s properly handled.
Check sent to Attorney’s Office
The personal injury settlement check, often referred to as settlement money, is usually made out to both you and your lawyer. It’s sent to your lawyer’s office instead of you to prevent loss or theft. Your lawyer will deposit the check into an escrow or trust account and hold it temporarily.
Handling Settlement Liens
Before you get your settlement funds your lawyer will handle any liens on the personal injury settlement. These liens could be for outstanding medical bills, child support payments or insurance reimbursements. The lawyer will use part of the settlement to pay off these obligations so you comply with the legal requirements.
Final Payout
Once all liens are settled and legal fees and expenses are deducted your lawyer will disburse the remaining settlement funds to you. This is the final step of the payout process and you’ll get the net amount of your personal injury settlement. The whole process usually takes a few weeks from the time you sign the release documents to the final disbursement of funds.
Consult with an Experienced Atlanta Personal Injury Lawyer Today!
The claims process for personal injury cases can be long and laborious, but you should not give up on getting the compensation you deserve. Our experienced Atlanta personal injury attorneys at Buddoo and Associates can help you speed up the process and make sure you’re getting compensated fairly.
Contact us ASAP at 404-870-3557 for a free case consultation!
