How are personal injury settlements paid out?

Recovering from an injury is already challenging, so understanding the financial details of your settlement shouldn’t be another hurdle. Knowing how your personal injury compensation will be handled can simplify the process and let you concentrate on improving.

With Zara Injury Law by your side, you’ll have clear guidance every step of the way, ensuring no surprises in how you receive your settlement. Keep reading for more from our skilled Denver personal injury lawyers. If you or a loved one were hurt in an incident that wasn’t your fault, call us at (866) 823-8288.

how are personal injury settlements paid out

What are your options for getting paid?

You might receive your settlement money in one of two main ways: lump sum or structured settlement.

  • Lump sum – You get all your money at once. This is a good option if you have substantial bills, like medical expenses or urgent repairs, to pay immediately.
  • Structured settlement – Instead of getting all your money at once, you receive it in smaller, regular payments over time. This can provide a steady income stream for years or even for life, which helps with ongoing expenses and offers financial security.

How does the settlement process work?

  1. Settling on a number – First, Zara Injury Law and the other party will agree on how much money you should get. We’ll write an agreement specifying whether you get a lump sum or structured payments.
  2. Choosing how to get paid – With advice from your lawyer, you’ll decide if you want all your money right away or in regular payments.
  3. Getting the court’s approval – A court must approve the settlement to ensure fairness in lawsuits, especially when they involve a lot of money or minors.
  4. Getting your money – Once everything’s approved, the insurance company or whoever pays will send you the money. You’ll get the whole amount at once if it’s a lump sum. If you choose structured payments, they’ll start sending them as agreed.

What else should you know?

Here are a few more things to keep in mind during the settlement process in Colorado:

  • Paying for legal help – The costs of your lawyer and court fees generally come from the settlement amount before you get your share.
  • Dealing with liens – If any healthcare providers or others have claims against your settlement (like unpaid medical bills), those need to be paid before you can get the rest of your money.
  • Taxes – Usually, you don’t have to pay taxes on the money you get for your injury. But if part of your settlement is for lost wages or as punishment (punitive damages), you might have to pay taxes on that part.

Hurt in an incident that wasn’t your fault? Let us help.

A clear picture of how personal injury settlements are paid out can remove much of the worry and help you plan better for your financial future. Whether you choose a lump sum or structured payment, each option has benefits to fit your needs. With the support of Zara Injury Law, you can make informed decisions and ensure a smoother financial recovery after an injury. Contact us today – we look forward to hearing from you.