How Are Personal Injury Settlements Paid Out?

February 22, 2024

Video Transcript:

A personal injury attorney can help you obtain a settlement after an accidental injury, but how are personal injury settlements paid out? Hi, I’m speaking on behalf of Hensley Legal Group, a personal injury law firm based out of Indiana. I’d like to discuss how you could be compensated for your personal injury case. A personal injury settlement can be paid out after your lawyer reaches an agreement with the parties who injured you or their insurance companies. Generally, you will receive everything owed by the defendants all at once in what is known as a lump sum settlement, which gives you maximum control over your settlement funds. Alternatively, you might be able to receive a structured settlement, where funds are paid out in installments over time. A structured settlement can allow you to better plan for the future, but you may experience difficulty if an unforeseen expense comes up. After a settlement check is issued, your attorney will first need to pay anyone who has imposed a lien for repayment on your settlement, such as medical providers, insurance companies, and lenders. Sometimes liens can be negotiated down to reduce what you owe. Your attorney will then seek payment for his or her services and reimbursement for out-of-pocket expenses before distributing the remainder of the settlement to you. In Indiana, a minor’s parents or guardians are permitted to settle a personal injury case on the minor’s behalf, but the settlement cannot be finalized without court approval. If the settlement is over $10,000.00, the court also needs to establish guardianship over the minor, though it won’t have to do so if the settlement is $10,000.00 or less. Once the settlement has been approved, the funds must be deposited into an account in the minor’s name. No funds can be withdrawn without the court’s approval until the minor turns 18, at which point the minor will have control over the account. Thank you for watching this video. If you found this information useful, please hit the “like” and “subscribe” buttons. And if you have been wrongfully injured, contact Hensley Legal Group, where we have been fighting for the everyday people of Indiana for over 25 years.