1. Receiving Your Compensation

The most anticipated outcome after winning a personal injury case is the compensation awarded to you. Once your case has been resolved, whether through a jury verdict or a settlement, the next step is the disbursement of funds. The amount you receive will depend on the specifics of your case, such as the severity of your injuries, medical expenses, lost wages, pain and suffering, and other factors.

How Payment Is Disbursed: The payment is typically sent to your attorney’s office first, where it will be distributed after deductions for legal fees and other related costs. These fees are often a percentage of the settlement or award, agreed upon in advance when you hired your attorney. Once your attorney’s fees are subtracted, you will receive the remaining balance of the award or settlement.

2. Settling Outstanding Medical Bills

A significant portion of the compensation you receive may go toward settling medical expenses incurred due to your injury. If you have not yet paid off your medical bills or if your health insurance has covered some of your medical expenses, the funds will be used to reimburse these costs. Additionally, if you have liens placed by healthcare providers or insurance companies, they may claim a portion of your compensation to recover their payments.

Medical Liens: It’s important to note that medical providers or insurance companies may place liens on your settlement or award, meaning they have a legal right to collect payment from your compensation. Your attorney will work with these parties to ensure all liens are settled appropriately, reducing the amount you need to pay.

3. Accounting for Future Medical Costs

If your injury requires long-term care, rehabilitation, or future medical treatment, part of your compensation may be allocated to cover these ongoing expenses. This is particularly important in cases where your injuries are severe and may result in chronic pain or disability.

Your attorney from The Law Office of Raffi T. Khorozian can help ensure that your settlement or award includes provisions for future medical needs. This may involve consulting with medical experts to estimate the long-term costs of care, rehabilitation, and any necessary accommodations.

4. Taxes on Your Personal Injury Settlement

One concern for many clients is whether their personal injury settlement or award is taxable. Fortunately, in most cases, personal injury compensation is not subject to federal income taxes. However, there are exceptions, such as when you are awarded compensation for lost wages or punitive damages. These amounts may be taxable.

It is advisable to consult with a tax professional to ensure that you properly report your settlement or award when filing your taxes. Your attorney can help clarify whether any portion of your compensation may be taxable.

5. Understanding the Impact on Insurance Claims

Winning a personal injury case may also affect other insurance claims you have made, such as health insurance or auto insurance claims. Your settlement might impact your eligibility for certain benefits, and it could lead to adjustments in your premiums or coverage moving forward. In some cases, your insurance company may seek reimbursement for the benefits they paid during your recovery process.

Coordination of Benefits: It’s crucial to keep your insurance providers informed and work with your attorney to ensure that you understand how your compensation may affect future insurance claims.

6. Moving On with Your Life

Once the financial and legal aspects of your personal injury case are settled, the next step is to focus on your physical, emotional, and financial recovery. Winning a personal injury case can offer you the resources to move forward, whether it’s paying off medical bills, returning to work, or adjusting your lifestyle to accommodate ongoing recovery.

Rebuilding Your Future: The emotional impact of a personal injury case can be significant, and your attorney will likely advise you to seek counseling or therapy if needed. Additionally, the financial stability provided by your compensation can help ease some of the burdens that come with the aftermath of an injury.

7. Avoiding Common Mistakes After a Settlement

While receiving compensation can be life-changing, it’s important to approach the settlement or award responsibly. Common mistakes that clients make after winning a personal injury case include overspending, failing to plan for future expenses, or not consulting with a financial advisor.

Financial Planning: Consider working with a financial planner to create a long-term strategy for managing your settlement funds. This can help ensure that your compensation is used effectively and that you are prepared for any future medical or financial needs.

Final Thoughts

Winning a personal injury case is a significant achievement that can help you recover financially and emotionally. However, the process doesn’t end when you receive your compensation. Understanding the next steps, such as paying off medical bills, planning for future care, managing taxes, and securing your financial future, is crucial. At The Law Office of Raffi T. Khorozian, we are committed to guiding our clients through every stage of the legal process, ensuring that they are prepared for the future after their personal injury case.

If you have recently won a personal injury case or are considering filing one, contact The Law Office of Raffi T. Khorozian at 888.658.4284 or visit our website https://lawyercaraccidentnynj.com/ for more information.