What Happens After You Win a Personal Injury Case?

What’s Next After You Win Your Personal Injury Claim?

With the help of your lawyer, you have won your personal injury case, either through a settlement agreement or a court verdict. You even have a signed document to prove it. So, what’s going to happen after this?

If You Won a Settlement

As far as collecting your compensation, entering into a settlement agreement is the best-case scenario, as it leads to a quicker and less complicated disbursement process. The other party, usually an insurance company, has accepted liability and agreed to compensate you. Most insurers pay settlements within weeks of reaching the agreement, with a specific due date.

You will sign a release once your attorney notifies the court that the case has been settled.

If You Won a Court Verdict

The judge has ruled in your favor, declaring that the other party is legally obligated to provide compensation for your losses. Once the trial is over, some defendants voluntarily pay. In many cases, however, there are still hurdles to overcome.

  • The Other Party Files an Appeal
    The only difference for you is a delay in receiving your final payment if the court continues with its initial decision. The insurance company might be using an appeal to get you to settle for a reduced amount instead of waiting for the process to finish. An appeal could also lead to a retrial, creating further delay.
  • The Other Party Refuses to Pay
    Most insurers comply with settlements and court orders. However, if your final payment is above or outside the defendant’s insurance coverage, it may become a challenge to recover your damages. Fortunately, your lawyer can use post-judgment remedies to get the liable party to pay.

Your Potential Financial Obligations

Before you receive any funds, you may have some financial responsibilities, including:

  • Contingency Fees
    You will owe a part of your award as legal fees if your attorney took your claim on contingency. If your lawyer advanced the expenditure of your case, you will also need to pay these back out of your compensation.
  • Medical or Government Liens
    Your healthcare provider may have placed liens on your recompense based on treatments that need to be paid. If you used Medicare or Medicaid to pay your medical bills, you will be required to pay them back out of the proceeds of your settlement.
  • Taxes
    Most personal injury court awards and settlements are not subject to tax. However, specific damages may be taxable, including:
    • Awards for lost income
    • Interest on your settlement
    • Previously deducted medical costs
    • Punitive damages

In any case, your attorney can assist you in understanding your obligations and ensure you meet them after you win your personal injury claim.

Let Our Legal Team Review Your Case

A personal injury victim’s journey to recovery can take a long time, but justice is achievable. Our experienced lawyers at Cruz & Associates in Phoenix, Arizona will help you move forward and make the right decision in your case. Contact us today for a consultation.

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