When you are injured in an accident, there are many expenses that you might have to face to take care of yourself in the wake of your injury. These costs can add up quickly, and you must have the financial support you need to manage the costs of your care. A personal injury lawyer can help you get the care you need and have the financial support required to transition into life after an injury, no matter where your injury takes you. When your personal injury attorney wins your suit, you must know where the settlement money will go.
Unpaid Liens Are Paid First
When your injury attorney settles your case, you may want to start spending your money right away, but a few things need to be taken care of first. The very first order of business is any liens against you. This often will happen in injury cases because you may have to take out a loan to pay off your medical debt in the meantime, or you may have outstanding bills with your hospital or doctor’s offices.
When dealing with your injury before having your case settled by your injury lawyer, it is crucial to be smart with your finances. Before you see any of the money from your settlement, it will go to pay off any debts you have concerning your injury. Avoid predatory loans that will charge you tremendous interest rates to cover your medical payments. It is better to avoid taking a high-interest loan and accept a lien than to deal with the unexpected costs of a high-interest predatory loan. However you handle the financial side before your personal injury case is settled, the settlement will pay off those elements first.
Once any liens are taken care of, the next step is to pay any attorney fees with your personal injury law firm. In general, you will only be required to pay for the services of your accident injury lawyers if you win your case and it is settled in your favor. At that point, you will generally owe them a percentage of your settlement. This is nice because it means you are not paying your lawyer an hourly rate, and you do not have to pay them before you have received your settlement. Your lawyer’s contingency fee will be automatically taken out of your settlement before you receive any money yourself. This common practice makes it easier for people to afford lawsuit lawyers after an injury. The percentage you pay varies from area to area and from law firm to law firm, but you can probably count on around thirty percent.
The Client Gets the Rest
After the lawyers have been paid, you will finally receive your portion of the settlement from your personal injury claims. This remaining money is often tax-free and can be spent on whatever you choose. This is because everything you owe will already be paid off through the first step of the payout. That means that you can use the money to make up for lost wages and pay for anything you want or need. It is vital to use the funds from your bodily injury claim wisely to make sure you are in a stable financial situation. This will prevent you from dealing with the additional stress you may face if your finances are not in order or if you lose your job due to your injury.
When you are injured in an accident, you must have the help of a professional lawyer throughout your personal injury case. They will help you get a positive result from your personal injury settlement and guide you through the whole process. And since you will not have to pay them until your bodily injury claim settlement is complete, there is no real downside to investing in some professional help with your case.
If you would like to learn more about personal injury law or your legal options following your injury, then please visit our website here.