How Are Personal Injury Settlements Paid Out?
Sep 10, 2022 | CHASENBOSCOLO
In Maryland, personal injury settlements are paid out in differing ways, depending on the structure of the settlement. You could get a lump-sum payment or smaller disbursements over time.
If you settle your personal injury accident claim, you may have a couple of options for receiving compensation. You might opt for a structured settlement or a lump-sum payment.
- Structured settlements: These settlements are paid in installments over time, usually once a month or once a year. If you opt for a structured settlement, you could have a guaranteed source of income until the settlement is paid out.
- Lump-sum payout: In this type of payout, you would receive all the compensation owed in one immediate payment. Here, the obvious benefit is that you get compensation right away.
Before settling on a payment option that is right for you, discussing the matter with your attorney might be helpful.
How Long Does It Take to Receive Settlement Money?
Several factors can influence the amount of time it takes to receive a settlement payment. Here are just a few:
- The Insurance Company Is Slow in Processing Your Settlement: A plaintiff must sign a release form to approve the terms of a settlement. Then, the insurance company must process the form. In theory, this should take about six weeks. Sometimes, however, an insurance company does not process the form timely, and you could be waiting for months.
- There Are Liens Filed Against Your Settlement Proceeds: Your insurance settlement could have liens placed against it. For example, a medical lien could be placed on your insurance settlement if you have extensive accident-related medical bills. If your attorney engages in negotiations to avoid having a large amount of your settlement go to creditors, this could delay your payout.
- Multiple Parties Are Involved: The more complex a case is, the more time-consuming it is. A case that involves several parties will also involve more lawyers and more insurance companies—and more processing time.
- Dealing With Your Own Insurance Company: If you are injured in an accident by someone who does not possess vehicle insurance, you may have to file a claim with your own insurance company. Sadly, these claims are sometimes challenged. This extra step in the process could delay your settlement payment.
- Assessment of Future Medical Needs for Your Injuries: Although we can file your claim with the at-fault party’s insurance company right away, we must wait until you have reached maximum medical improvement (MMI) before we can enter settlement negotiations with the at-fault party’s insurance company. Once you’ve reached MMI, we’ll know your future medical needs.
At CHASENBOSCOLO, we believe that the time needed to determine your future medical needs accurately is time well spent. To this end, we will examine all medical records, talk with medical experts and very carefully determine your future medical needs and costs.
When it comes to filing a personal injury case, the time to start is now. Most insurance companies require you to file a claim “as soon as possible.” However, you might want to file a lawsuit if settlement negotiations break down. This will extend the amount of time it takes to get the compensation you need.
There is a time limit for filing a lawsuit in every state. In Virginia, for example, the statute of limitations allows two years to file a personal injury lawsuit. This makes it crucial that you contact a lawyer as soon as possible.
Compensation Available After an Accident Someone Else Caused
Compensation can be awarded in a personal injury settlement based on several factors. Some of these include:
- Medical bills, including physical therapy, doctor visits, medications, and more
- Lost wages
- Lost future earnings
- Reduced or lost earning capacity
- Anxiety or PTSD
- Pain and suffering
- Out-of-pocket expenses
- Loss of consortium
- Loss of enjoyment of life
- Permanent disability
- Property loss or damage
- Wrongful death
If you have been injured in an accident that was someone else’s fault, the personal injury attorneys of CHASENBOSCOLO can help you seek the settlement you deserve. We have successfully handled claims throughout Maryland, Washington, D.C., and Virginia.
We believe in seeking the maximum payout possible for each of our clients. We have helped our clients obtain more than $750 million in compensation since 1986.
The first step in receiving a payout for a successful personal injury claim is to contact us as soon as possible at (301) 220-0050. Once you contact us, we can discuss your case and offer advice to get you on the road to fair compensation. Schedule a free consultation today with our experienced lawyers.