How are Personal Injury Settlements Paid Out in Columbus, Ohio?

You’ve been through the wringer after your accident – the pain, the medical bills, the stress of dealing with insurance companies. But you’ve finally reached a settlement, and now you’re eager to put this chapter behind you and move on with your life.

One of the most common questions we hear from clients at this stage is, “When and how will I get my settlement money?” It’s a fair question, and the answer can vary depending on the specifics of your case. In this post, we’ll walk you through the typical process of receiving a personal injury settlement payout in Columbus, Ohio.

Signing the Settlement Agreement

Once you and the other party (usually through an insurance company) have agreed on a settlement amount, the first step is to put it in writing. This document, known as a settlement agreement, will outline the terms of the settlement, including the amount to be paid, the release of liability, and any other relevant conditions.

Your attorney will review the agreement carefully to ensure it accurately reflects the negotiated terms and protects your rights. Once you’re comfortable with the language, you’ll sign the agreement, and your attorney will send the signed release back to the insurance company to obtain payment.

Processing the Payment

After you have signed the settlement agreement, the insurance company will issue payment. In most cases, this takes about two (2) weeks, but it can vary depending on the company, the complexity of the case, and whether a lawsuit has been filed.

During this time, the insurer will cut a check for the settlement amount and send it to your attorney. It’s important to note that the check will usually be made out to both you and your attorney as a protection against fraud.

Paying Liens and Legal Fees

Before you receive your portion of the settlement, your attorney will need to address any outstanding medical bills, liens, and other expenses related to your case, including:

• Medicare or Medicaid liens: If Medicare or Medicaid paid any injury-related medical expenses, there will be a lien on your settlement to recoup those costs.
• Attorney fees: Most personal injury attorneys work on a contingency fee basis, meaning they only get paid if you win your case. At this point, your attorney will deduct their agreed-upon percentage of the settlement (usually one-third (1/3) of the total settlement or 33.333%).
• Case costs: Your attorney will also subtract any out-of-pocket expenses they incurred while working on your case, such as costs to obtain your medical records related to your injury. In cases requiring litigation, additional expenses may be incurred, including, but not limited to: court filing fees, expert witness fees, and fees for court reporters and deposition transcripts.

Your attorney will pay these expenses directly from the settlement, ensuring that all expenses are paid.

Receiving Your Settlement Check

Once all expenses have been paid, your attorney will draft your settlement check. The money that you receive in your pocket may be used for any purpose. In most cases, you can expect to receive your check within 1-2 weeks after your attorney receives the settlement funds from the insurer. However, this timeline can vary depending on the complexity of your case and the number of liens involved.

In some cases, you may be eligible to receive your settlement funds by direct deposit (ACH transfer) directly to your checking or savings account. Direct deposit is a safe way to receive your funds, sometimes more quickly.

Contact our office to find out whether you might qualify for a direct deposit of your settlement funds.

Government Benefits

You should notify your attorney if you receive financial assistance or government benefits such as supplemental security income (SSI), Medicaid long–term care insurance, or food stamps.

Your government benefits may have associated asset limits. If your assets exceed these limits, you may lose your eligibility to continue to receive your benefits.

If so, you may have a duty to report your personal injury settlement to the Social Security Administration (SSA) or your caseworker. In some cases, your attorney may be able to create a trust to protect your government benefits and your personal injury settlement proceeds. In other cases, you must spend the proceeds to retain or regain your eligibility to receive benefits.

Planning for the Future

Receiving a personal injury settlement can feel like a weight off your shoulders, but it’s important to manage these funds wisely. Consider working with a financial advisor to create a plan for your settlement that accounts for your current needs and long-term goals. In some cases, an annuity or structured settlement might be beneficial.

Keep in mind that personal injury settlements are generally tax-free, as they’re intended to compensate you for losses rather than provide income. However, there are some exceptions, so it’s a good idea to consult with a tax professional to understand any potential implications.

We can help by referring you to a trusted structured settlement advisor, financial planner, or another financial or tax professional.

Get the Guidance You Need with The Jones Firm

Navigating the personal injury settlement process can be complex, but you don’t have to go it alone. At The Jones Firm, our experienced personal injury attorneys are here to guide you every step of the way, from negotiating with insurers to ensuring you receive your settlement funds as quickly as possible.

If you’ve been injured in an accident in Columbus, Ohio, don’t hesitate to reach out. Contact us today for a free, no-obligation consultation. We’ll listen to your story, answer your questions, and fight for the compensation you deserve. You focus on healing – we’ll take care of the rest.