Anderson Injury Lawyers | November 22, 2023 | Personal Injury
Navigating a personal injury can be a complex and emotionally charged process. Most personal injury cases settle with insurance companies before trial. For victims, this begs the question, “How much of the settlement goes in my pocket?”
When it comes time to negotiate or settle your case, Anderson Injury Lawyers can help. Our team has helped victims across Dallas understand and secure full-value settlements for their claims. Here are key points to keep in mind:
Understanding Your Settlement
Personal injury settlements are agreements reached through negotiation or mediation. Settlements cover your various damages, including medical bills, lost wages, pain and suffering, and other losses related to your injury. The settlement amount is influenced by factors such as the severity of your injury and the impact of your injury on your life. The defendant’s liability and insurance policy limits are also important.
Other factors that play a role in how much goes in your pocket include:
1. Attorney Fees
Most personal injury lawyers, including Anderson Injury Lawyers, operate on a contingency fee basis. This means you do not pay hourly or upfront legal fees. Instead, your lawyer’s fee is a fixed percentage of the settlement or award they win for you at trial.
Contingent fees typically range from 33 to 40 percent of the total amount, according to the American Bar Association. For example, if you receive a $100,000 settlement, you can expect to pay between $33,000 and $40,000 in attorney fees.
2. Medical Liens and Bills
Medical liens are a significant factor in determining how much of a settlement goes in your pocket. Personal injury victims often face injuries that require hospitalizations, surgeries, or rehab.
If your medical care was covered by a private insurance company, Medicare, or Medicaid, they may have a legal right to recover their expenses from your settlement. This is codified under Texas law. Liens allow medical providers to be reimbursed for the costs incurred due to your injury.
3. Case-Related Expenses
You may incur certain out-of-pocket expenses to pursue your claim. Sometimes, these costs can be deferred and deducted from your settlement. Costs are case-specific, but examples of costs not covered by the contingency fee include:
- Court filing fees,
- Fees for service of process,
- Fees for obtaining medical records,
- Costs for deposition transcripts, and
- Fees for retaining expert witnesses.
Your settlement may cover these expenses, which can vary widely from case to case. Consult with a Dallas personal injury lawyer for a breakdown of what you can expect for your claim.
4. Repaying Debts
Your financial obligations after an accident extend beyond legal fees and medical bills. An often overlooked aspect is your settlement’s role in repaying debts. For example, if you owe child support or have certain government liens, like unpaid federal taxes, these may be deducted from your settlement.
Other creditors may also have a legal right to claim a portion of your settlement if there is an existing judgment against you. Disclosing any financial obligations to your Dallas personal injury lawyer is important.
5. Calculating the Final Amount
Most personal injury settlements are not subject to state or federal income tax, so after accounting for contingency fees, medical liens, case expenses, and other deductions, the remaining sum is what you will receive.
the net amount can vary significantly from the gross settlement amount. This is why it is important to clearly understand all the deductions in your case. Your lawyer will advise you along the way and give you an itemized settlement statement reflecting any deductions.
Consult With a Personal Injury Lawyer in Dallas, TX for Legal Help
If you or a loved one has been injured in a personal injury case, the path forward can seem uncertain. When it comes time to negotiate or settle your claim, determining how much will go in your pocket can be even more difficult.
Schedule a free consultation today with a Dallas personal injury lawyer at Anderson Injury Lawyers. Our team can help you weigh the different factors in your case.
Contact Our Personal Injury Law Firm in Texas
If you’ve been injured in an accident in Fort Worth or Dallas and need legal help, contact our personal injury lawyers at Anderson Injury Lawyers to schedule a free consultation. We proudly serve Tarrant County, Dallas County, and throughout Texas.