After you settle your personal injury case in Kentucky or Ohio, you may be confused by your next steps. How are personal injury settlements paid out? In both states, you have an option of a lump sum or a structured settlement, but deciding which option is best can be complicated. You may also be confused by the settlement timeline or what deductions are taken out of your award.
At Lawrence & Associates, we believe you deserve a lawyer who will guide you throughout the settlement process from start to finish. From the first negotiations to the moment the money is in your account, you can count on us for legal support.
What Happens After You Settle a Personal Injury Case?
Settling a personal injury case means you agree to release the at-fault party from further liability in exchange for compensation.
Once you’ve reached an agreement with the other party or insurance company, the lawyers will draw up formal documents for you to sign. These papers will list the settlement amount, how you’ll be paid, a release of liability, and any other conditions of the settlement. You can read over the documents and, as long as they remain unsigned, talk to your lawyer and object to anything written.
Once you’re satisfied, you will sign the agreement and your personal injury lawyer will send it to the insurance company to receive your payment. Under Ohio insurance regulations, once a release is signed, insurers are generally required to issue payment promptly—typically within five business days. Meanwhile, Kentucky laws require the insurer to act promptly, though it may take you slightly longer to receive your money from the personal injury claim settlement process due to additional processing.
Factors That Affect Settlement Payouts
In most cases, your settlement check will be sent to your attorney. Your attorney will then deduct the amount of their fees, as well as any expenses they incurred in handling your case, such as fees for documents or payment for a court reporter. The more complicated the case expenses, the longer processing your settlement may take.
Additionally, there may be a lien on the settlement that takes time to settle. If Medicaid or Medicare paid any of your medical costs, those will need to be paid out of your settlement. There may also be a lien on your settlement if you owe back taxes or child support.
You can help speed up the process by providing all required documents to your attorney and being honest about your outstanding debts. Don’t plan on using your settlement money immediately. If you need financial assistance, talk to your attorney about your options.
How Long Does It Take To Receive a Personal Injury Settlement Check?
In general, it will take anywhere between two and six weeks to receive your settlement. It could take several days before the insurance company processes your settlement check and sends it to us. After we receive your check, we will need to pay off any liens, deduct our expenses, and get court approval if the settlement is for a minor.
You deserve your settlement as soon as possible, so Lawrence & Associates works hard to expedite the process. We’re always here to help you better understand personal injury settlements.
Lump Sum vs. Structured Settlements: What’s the Difference?
Personal injury plaintiffs in Ohio and Kentucky typically take payment in one of two ways: a lump sum or a structured settlement. With a lump sum, you get the full amount of the settlement in one payment. With a structured settlement, you receive a small portion of the award at regular intervals over a certain length of time.
There are pros and cons to each payment method. If you have substantial debts or want to purchase your home or invest in a business, you may prefer to take a lump sum payment. However, once you spend this money, it’s gone.
Because structured settlement payments typically come out of an interest-earning annuity, you can earn more than you would with a lump sum. Regular payments can provide you with a consistent yearly income for a period of time, which may offer you financial security. However, if you need access to more cash than your payments provide, you may need to sell your settlement for less than it’s worth.
What Deductions Are Taken from a Personal Injury Settlement?
Your personal injury attorney will handle any needed deductions from your personal injury settlement:
- Attorney’s fees: Most personal injury lawyers work on a contingency basis, which means they take their fees only if you win. These fees are typically a percentage of the final settlement, and you agree to them when you start working with your lawyer.
- Medical liens: If Medicare or Medicaid paid for your care after your injury, or if you have unpaid medical bills, those will need to be paid out of your settlement before you receive your money.
- Court costs: If your attorney incurred expenses during your case, such as document processing costs or expert witness fees, they will take that amount out of your settlement.
At Lawrence & Associates, we’re committed to fair and transparent billing. We’ll provide you with an itemized list of all deductions and answer any questions you may have.
Trusted Personal Injury Lawyers Are Ready To Help
How are personal injury settlements paid out? We’ve got the answers to that question and more. At Lawrence & Associates Accident and Injury Lawyers, LLC, we understand the challenges you’re facing, and we’re here to protect your rights every step of the way. Our experienced Cincinnati & Northern Kentucky personal injury attorneys can guide you on what to do—and what to avoid—so you don’t unintentionally harm your case.
Call us today at (513) 951-6723 in Ohio and (859) 251-3045 in Kentucky for a free, confidential consultation, or fill out our online form to get started. Let us fight for the compensation you deserve while you focus on healing.
