How settlements are paid for your accident case

So you finally reached a settlement agreement with the other party in your accident case. But you might be wondering: How exactly do you collect your compensation?

In most personal injury cases, your settlement agreement is paid in 2 different ways: structured settlements or lump sum payment. 

Structured Settlements / Installments

Structured settlements are a common way of awarding settlement funds to injured people over an extended period of time. 

Structured settlements pay in regular installments so injured plaintiffs can receive a regular stream of income for anywhere from a few years, or even being paid for life. Often, the funds are deposited into a trust account to keep that settlement money safe for the plaintiff.

Lump Sum Payments

Lump sum payments are when the majority, if not all, of the settlement amount is paid at once to the injured party.

A claimant’s circumstances can often make receiving a settlement in a lump sum payment more favorable than a structured settlement. 

Typically, lump sum settlements are paid to plaintiffs via a check rather than cash or coins. Occasionally, lump sum payments are turned into trusts that support disabled claimants throughout their lives. 

Can structured settlements be combined with lump sum payments?

Many settlement agreements combine both a structured settlement and a lump sum pay structure to a claimant, which deposits a large initial boost of money that will then taper into steady installment payments. 

This is a commonly favorable pay structure to many claimants, as it helps medical expenses get covered as soon as possible without suffering as heavy of a tax burden, so injured people can retain a good quality of life.

How does my lawyer get paid?

You’ll discuss your attorney’s fees with your attorney at the start of your case, car accident or otherwise. 

If your lawyer is working off of contingency, they’ll receive a portion of the settlement amount OR court-ordered damages amount offered to you.

Working off contingency is often favorable for clients who may not be able to otherwise afford paying for the hundreds of work hours that an experienced law firm invests into ensuring that they’ll knock your case out of the park. It allows the lawyer to work for free upfront, and only get paid for providing good results to your case.

If you have been in an accident and need an experienced lawyer to help get your life back on track, look no further than Win Nguyen Law. All we do is Nguyen!