6 Steps For Disbursement of a Personal Injury Settlement
1) Proceeds are Deposited Into Trust Fund
Once a lawsuit has been won, or a settlement is reached between a claimant and an insurance company, the settlement is paid to and disbursed by the claimant’s law firm. It usually takes about one to three weeks from the date the case is settled for the law firm to receive the check from the insurance company.
2) A Settlement Statement is Prepared
The law firm will prepare a settlement statement that details where all the proceeds will be paid. With Robert C. Hahn, no funds are ever disbursed before the client gives permission, and directs the firm to disburse the funds. There are a number of reasons why this method of disbursement is best for all parties involved.
3) Medical and Other Debt is Cleared
As your lawyer, we’ll ensure that all creditors are compensated from the settlement proceeds. That way you’ll come out of the process without owing money to health care providers or other creditors as a result of your injury.
4) Preventing Overpayment To Creditors
We’ll also ensure that no creditors are overpaid and only receive recompense for what they actually paid out for the benefit of the claimant and are owed.
5) Offsetting Legal Costs
Often it’s possible to compromise or reduce claims of health care providers and have insurance companies who have paid out benefits contribute to part of the attorney’s fees that are due to the attorney. This is so important because all such offsets go directly into the pocket of the injured claimant.
6) Award is Paid to Claimant
You’ll be paid all proceeds that were not owed to third parties or paid as attorney’s fees or expenses. The proceeds will incorporate all funds due whether for pain and suffering, lost wages, emotional distress, or future medical procedures, you will be free to use the money as is best for you and your family.
There are additional methods of receiving compensation in special cases. For example, if the claimant is a minor and the amount of the award is over $10,000, a minor settlement generally must be set up to ensure that the proceeds go for the benefit of the minor. In some instances, it may be beneficial to the injured to gain interest on a settlement and receive future payment(s). These can be monthly, yearly, or any number of larger lump sum payments. These structured settlements are set up by an independent financial advisor.
Many additional considerations may arise when payments are received and remitted. Such as getting the claimant the most out of the settlement, dealing with third parties creditors from insurance companies, and dealing with state or federal agencies such as Medicare and Medicaid. A proactive plaintiff’s counsel will be able to ensure that the victim in an accident is protected and gets what they are owed and deserve.
We Can Help
In the end, it is our goal to obtain the highest possible recovery for our clients. Through the disbursement process, we maximize our client’s recovery by paying as little as possible to only those parties that must be paid from your recovery. This can take a little time but is worth it because every reduction obtained directly increases the client’s recovery. If you would like us to look at your case or have questions about a personal injury, we offer a free consultation and are only an email away.
Real concern, real help, and the consultation is free.