How Are Awards & Settlements Paid?
Once a lawsuit has been won or, alternatively, a settlement is reached between a claimant and an insurance company, the settlement is paid to and disbursed by the claimant’s law firm assuming the claimant is represented.
Proceeds Deposited Into Trust Fund
The proceeds are first deposited into the law firm’s trust account. A trust account is an account that all reputable law firms have that holds client funds, and that is periodically audited.
Settlement Statement Prepared
Then, the attorney will prepare a settlement statement that details where every cent of the proceeds will be paid. No funds are ever disbursed before the client gives permission, and directs the firm to disburse the funds. There exist a number of reasons why this method of disbursement is best for all parties involved, but, most importantly, the claimant.
Medical & Other Debt Cleared
First, an experienced claimant’s attorney ensures that all creditors are adequately compensated from the settlement proceeds. This is good for a few reasons. Obviously it is desirable for most injured persons to come out of the process without owing money to health care providers or other creditors as a result of an automobile accident.
Prevent Overpayment To Creditors
Secondly, the attorney can ensure that no creditors are overpaid and only receive recompense for what they actually paid out for the benefit of the claimant and are owed.
Offset Legal Costs
Third and very importantly, a personal injury attorney experienced in automobile accidents can often times compromise claims of health care providers and have insurance companies who have paid out benefits contribute to part of the attorneys fees that are due to the attorney. This is so important because all such offsets go directly into the pocket of the injured claimant.
Award Is Paid To Claimant
The client is then paid all proceeds that were not owed to third parties or paid as attorney’s fees or expenses. While the proceeds incorporate all the funds due to the client whether it is for pain and suffering, lost wages, emotional distress, or future medical procedures, the client is free to use the money as is best for his or her family.
Alternative Payment Methods Arranged
There also exist additional methods of receiving compensation in special cases. For example, if the claimant is a minor and the amount of the award is over $10,000, a conservatorship generally must be set up to ensure that the proceeds go for the benefit of the minor. Also, in some instances, it may be beneficial to the injured to gain interest on a settlement and receive future payment(s). These can be monthly, yearly, or even one or a number of larger lump sum payments. These structured settlements as they are referred to, are set up by an independent financial advisor. Once again, an experienced claimant’s attorney often will have a company to which they can refer the injured to, and with whom they do business with. There are a number of additional considerations that may arise when payments are received and remitted. From getting the claimant the most out of the settlement, to dealing with third parties creditors from insurance companies to state or federal agencies such as Medicare and Medicaid.
The Spokane, Washington Law Firm of Robert Hahn is one of the leading firms in the area of Personal Injury Law. Our personal Injury clients have the peace of mind in knowing that their case is being handled by an experienced Plaintiffs injury attorney. Our aggressive representation and extensive experience has earned the firm of Robert C. Hahn, III, a stellar reputation for excellence in the representation of injured people. Robert Hahn’s goal is to provide excellent service by a highly experienced lawyer and legal professionals at an affordable fee.
After helping hundreds of injured people ranging from complex litigation to simple settlement of claims in Spokane and surrounding areas, Spokane Attorney Robert Hahn has the background to explain your alternatives and suggest a solution to your injury difficulties.If you are considering hiring a personal injury attorney, make sure that the attorneys you are considering practice in personal injury law because you need a law firm that deals with these issues on a daily basis.