When it comes to personal injury cases, legal settlements can be obtained in a couple of different ways. Ideally, you will be able to reach a settlement with your insurance company without ever needing to go to trial. In the event that a fair settlement can’t be reached, however, the case could proceed to trial.
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Here’s a closer look at what happens in the wake of these two different options.
1. Pre-trial settlement
- Paperwork. The paperwork should be relatively straightforward if you settle with the insurance company before going to court.
- Payment. Your settlement check will most likely be sent from your insurance company to your attorney. It should arrive within just a few weeks of an agreement being reached.
2. At-trial settlement
- Paperwork. Once you reach a settlement in court, you will need to work with your attorney to complete all required paperwork. Watch your deadline; you will probably have just one to two months to submit the finished paperwork. You will have many documents to wade through, but the most significant one will be the Release Form. This form confirms an agreement to resolve disputes and drop any claims while releasing the other party from any liability for the accident or resulting damages.
- Payment. Your check may require a month or more to arrive. Once your check arrives, your attorney can issue it to you.
Depending on the nature and severity of your personal injury, you may receive a sizeable amount of money. After you have received your settlement funds, regardless of whether you settled before or in the course of a trial, you should always find out how much of your payment is taxable and set aside that portion immediately.