Find more about the many options for securing payment of a personal injury settlement. In many circumstances, winning the lawsuit is only the beginning of assisting victims in obtaining compensation for injuries caused by others. You must still obtain the money that the court has given you. Here’s a quick rundown of everything you need to know about receiving compensation after a successful personal injury case.
Receiving payment from an insurance company
When you obtain a settlement from an insurance company, the procedure of collecting your money is rather simple. Normally, the funds will be sent to you and your attorney as soon as possible. If the compensation is substantial, the insurance company may decide to give you an annuity.
For the term of the annuity, you will receive a portion of the prize each year. This choice saves you money on taxes since it lowers the amount of the settlement you’ll have to declare as income each year. It can also help you budget the money effectively for your future requirements, and the annuity fund should provide a greater return on investment than putting all of the money in a bank account.
Being compensated by a single person
Receiving your settlement money might be more difficult if your case included an individual who was not covered or if you awarded damages in excess of their insurance coverage. It all boils down to whether or not the individual has the financial means and desire to pay freely. The following are the two primary scenarios:
- Payment Plan: The majority of people do not have the liquid assets necessary to pay off a personal injury award right after the trial. They can agree to a payment plan that will help them to pay off their debt in the long run.
- Taking Legal Action to Obtain a Compensation: If the defendant refuses to pay or claims to be unable to pay, you may need to take legal action to secure your settlement. You can ask the court to enforce the judgment by putting a lien on the defendant’s property or garnishing their pay.
What If You Need Money Right Now?
If you need money right now to pay for medical bills, there are a number of companies that can either advance you money against your predicted payout (during the trial) or buy out an annuity so you may get a lump sum payment (after trial). Always read the small print before agreeing to any of these sorts of agreements, since you will most likely be giving up a significant portion of the value of your settlement in exchange for the convenience of obtaining your money sooner.
The good news is that if you are working with an experienced personal injury attorney, they can help you determine how to collect the money you are owed. Call Law Offices of Michael A. Kahn at (310) 209-1600 to request a free legal consultation today.