Personal injury settlement payments in Texas typically fall into one of two types: a lump-sum payment or a structured settlement. However, you won’t receive your settlement immediately after you agree to the terms. Instead, there are a few crucial steps that will dictate how much money you eventually receive and how quickly you receive it. At Patterson Law Group, we know that injuries sustained after an accident can be physically, emotionally, and financially draining. We understand the gravity of your situation and the importance of justice. Contact us today to find out more about personal injury settlements. Results matter, and we want to help you earn them.
Once you and your Fort Worth personal injury lawyer have negotiated with the opposing party and agreed to a settlement, you will need to sign a release. Next, you and your lawyer will review the terms, which will outline the details of your payment and list any other parties who are entitled to a portion of your settlement. Once you sign it, the insurance company will send your personal injury settlement check to your attorney. Texas law requires insurance companies to disburse your payment within five business days.
When your attorney receives it, they will make any required payments to creditors with your settlement funds, such as any outstanding medical liens. During this process, your personal injury lawyer may negotiate with your creditors to lower the amount you owe. You may also be responsible for other costs, such as court filing fees. After paying your case-related debts, your attorney will deduct the agreed-upon percentage for legal fees, and the remaining balance is yours.
In Texas, you can receive your settlement payment in two ways: through one full lump-sum payment or an installment-based structured settlement. Your payment timeline will be determined by the option you select:
- Lump-Sum Payment. Lump-sum payments involve the disbursement of your entire settlement at one time. If you choose this option, it will be issued to your attorney within the state-mandated five-day window. You should receive the check within two weeks. Many choose to place this money into an interest-earning investment.
- Structured Settlement. The structured settlement option involves scheduled incremental payments. Typically, you’ll be able to select the start and end date of the payments and the frequency. This option is usually more popular than lump-sum payments since it provides victims with a steady income stream. You may also elect to receive an initial lump sum worth less than the total settlement, with the remainder paid out in installments. In some cases, such as personal injury cases involving children, installments may be issued initially before a larger lump sum is disbursed later, usually after their 18th birthday.
If you have been injured due to someone else’s negligence, contact Patterson Law Group immediately for a free consultation. Our personal injury attorneys can answer your questions about the payment process and fight for the compensation you deserve. We are an efficient and hard-working team that is ready and willing to fight for you because we recognize that an injury doesn’t have to be catastrophic to be life-changing.