Questions to Ask Your Personal Injury Lawyer About Your Settlement
Securing a claim for injuries you have received in an accident can be a complex process. But it becomes even more daunting and stressful if you try to navigate it on your own. You need someone like the experienced personal injury attorneys at Munley Law to handle this process on your behalf.
During your consultation, you’ll have questions to ask your lawyer about your settlement. To help you prepare, these are some of the most common questions and their answers.
How is My Personal Injury Settlement Calculated?
Several factors go into the calculation of your personal injury settlement, and they can be categorized into two types.
- Economic damages: Any quantifiable expense, such as medical bills, property damage, and lost wages. Potential future lost wages from a debilitating injury would also fall into this category.
- Non-economic damages: Non-quantifiable damages, such as pain and suffering.
What Factors Could Reduce My Settlement Amount?
Pennsylvania insurance settlements are governed by the contributory negligence rule. This means that if you are found to be partially to blame for your accident, your settlement could be reduced by the percentage of liability.
For example, if your car accident is found to be 25% your fault, your total eligible compensation would be decreased by 25%. If your liability for the accident exceeds 50%, you are ineligible to receive any compensation.
What is a Contingency Fee?
A contingency fee means that your personal injury lawyer will only collect a fee for their services once a settlement is reached or if they win your case in court.
A contingency fee can be anywhere between 20% to 40%, depending on the case complexity and whether your case settles or goes to trial.
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Call Us At 844-686-5397 How Long Will It Take for My Personal Injury Case to Be Settled?
Each case has its own unique circumstances that affect how quickly a settlement is reached. No two cases are the same, so it is impossible to provide a pre-determined time.
Simple cases with clear liability and minor injuries often settle in a few months, while complex cases involving severe injuries or disputed fault can take several years to reach a fair settlement.
The timeline depends on factors like:
- How long will your medical treatment last
- How quickly the insurance company responds to your claim
- Whether your case goes to trial or settles through negotiation
Should I Accept the First Settlement Offer?
Generally, you should never accept the first settlement offer from an insurance company. They will most likely try to offer an amount lower than your total economic and non-economic damages, which will lead to further losses in the future.
Munley Law’s award-winning personal injury lawyers will be able to analyze an insurance company’s settlement offer and advise whether it would be in your best interest to accept it.
What Happens if I Reject the Settlement Offer?
If you decide to reject an insurance company’s first offer, your attorney will inform them and submit a counteroffer. This negotiation will go back and forth between the insurance company and your attorney until an agreement that everyone feels is fair is reached. If no agreement can be reached, the case would progress to a court trial.
How Long Will It Take To Receive My Personal Injury Settlement?
After a settlement with an insurance company is reached, it can take anywhere between two and six weeks for your settlement money to reach you.
As part of the payout procedure, the insurance company will send the settlement amount to your lawyer. They will be responsible for paying all outstanding bills used to calculate your settlement amount. The lawyer will also deduct their fee, as well as any expenses they may have paid up front in the preparation of your case.
The remaining amount is then paid to you by your lawyer, along with a statement that shows all the deductions.
“At Munley Law, our mission is simple: to provide all injury victims equal access to justice, even against the most powerful entities. For more than 65 years, we have been the voice for the injured, the forgotten, and those who need someone to stand beside them in their darkest hour.”
Marion Munley
What Expenses Will be Deducted from My Settlement?
As part of a contingency fee payment agreement, your attorney will pay all expenses relating to your case out of pocket, with the expectation that they will be reimbursed should you reach a settlement or win, if the case goes to trial.
Many of these expenses are related to the calculation of your settlement amount. Expert witnesses play a key role in strengthening your case. However, these professionals also charge fees for their evaluations and testimony.
Often, fees are involved in obtaining copies of police reports or medical records. Your attorney will explain what these expenses will be during your initial consultation and should provide an itemized breakdown of the actual costs when you settle.
What is a Lein and How Will It Affect My Personal Injury Settlement?
A lien is a legal obligation to pay for medical services you may not have been able to afford at the time they were rendered. When your case is being settled, the lien holder is entitled to a portion of the settlement monies.
It is essential to inform your attorney about any existing liens so that they can be included in the overall settlement amount. Your attorney may be able to negotiate a lesser amount for the liens
Are There Any Tax Implications for My Settlement?
Under U.S. federal tax law, personal injury settlements are generally not taxable. The Internal Revenue Service (IRS) exempts these settlements from taxation to safeguard injured victims seeking compensation from additional financial stressors.
While most personal injury settlements are not taxed, there are exceptions in which they can be. These exceptions include:
- Settlement amounts for lost income
- Punitive damages
- Accumulated interest on settlement monies
- Medical expenses that were already deducted in a previous tax year
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Will Accepting This Settlement Prevent Me from Seeking Additional Compensation Later?
Once a settlement is finalized, you cannot return later to request additional compensation. That’s why it’s essential to tell your attorney about every expense related to your injury. Complete transparency ensures you receive the maximum compensation you’re entitled to.
If you have questions about your personal injury case, contact Munley Law for a free consultation. Since we work on a contingency basis, there are no fees unless we successfully resolve your case.
Marion Munley
Marion Munley has been practicing personal injury law for nearly 40 years. She is triple board-certified by the National Board of Trial Advocacy for Truck Accident Law, Civil Trial Law, and Civil Practice Advocacy. She currently serves as Vice President of the American Association for Justice, an organization dedicated to safeguarding victims’ rights. Marion has won many multimillion-dollar recoveries for her clients, including one of the largest trucking accident settlements in history. She has been named a Top 10 Super Lawyer in Pennsylvania since 2023, a Best Lawyer in America, and was recently inducted to the Lawdragon Hall of Fame.
Posted in Personal Injury.
