Article Summary
- It depends. Most times, settlements are paid in a lump sum payment, but larger settlements may be paid in installments.
- Yes. There is a designated order for how settlements are paid. Debts and legal fees are paid first, and the remaining balance goes to the person who filed the claim.
- Most settlements are disbursed within three months of the agreement.
Car accidents can happen in seconds. The process of settling a lawsuit and receiving compensation for that accident can take quite a bit longer. While simpler cases may need just months to resolve, more complicated ones can take years.
Either way, it helps to have an experienced personal injury lawyer by your side throughout the process.
It’s nice to know how the entire procedure will play out, especially for something that can be as foreign as an accident, the claims process, and the legal happenings that are involved. How is settlement money distributed? What is a fair settlement for a car accident in Arizona? Are personal injury settlements taxed in Arizona? And, perhaps most importantly, how much money can you get from a lawsuit?
These are all fair questions to ask during the personal injury claims process. Let’s explore the answers.
Phoenix Accident Settlement Process
It might be surprising to learn that the settlement payout process for a personal injury claim begins immediately after an accident has occurred. It starts with receiving medical attention, which is the first step of recovery but also one of the first vital points of documentation — following the police report of the accident — that builds the foundation for a personal injury case.
Once that is underway, several other steps begin simultaneously that can take a few weeks to a few months. Those steps include:
- Filing a claim.
- Accident investigation.
- Damage assessment.
- Negotiations.
- An agreed-upon settlement.
- Disbursement.
For someone who has been involved in an accident and is facing growing medical bills and lost wages at work, the process of disbursement becomes really important. Timing, as they say, is everything. And as time passes, it becomes even more pressing to have some idea when you might see the light at the end of the tunnel.
There are several factors that play into the size of a settlement and the time in which it is paid out. The severity of a person’s injuries is one factor, and the complexity of the case is another. It’s also important to remember that no two cases are identical, so it’s almost impossible to break down how a settlement will be disbursed using real dollar amounts.
How Settlement Money Is Distributed
In Arizona, settlement money is put into a trust following a settlement agreement. Once the insurance company deposits those funds into that trust, the attorney representing the person injured then distributes the funds according to the settlement agreement.
The first allocation goes to pay any medical bills or medical liens that are a result of the accident. Then, attorney’s fees are distributed. Once debts and legal fees are settled, the share that is reserved for the person who was injured is distributed. Those funds are generally distributed in a lump sum, but there are circumstances — particularly in larger settlements — where a payment structure is used.
All of the funds from a settlement are generally distributed within three months of the agreement. Once all funds are distributed, the case is closed.
There are a few things to keep in mind when it comes to compensation for an accident in Arizona. A settlement offer may be affected by the state’s comparative negligence law, which measures available compensation for a claim against an individual’s percentage of fault. It should also be noted that compensation from a personal injury claim is not taxed, with the exception of interest earned on that money.
A Personal Injury Lawyer With Experience
Car accidents can lead to legal claims. And legal claims, when handled by experienced personal injury attorneys, can generally lead to settlement agreements.
No one should go up against insurance companies alone. The team at Torgenson Law is here to support you through this process, ensuring your best interests are represented. If you’ve been involved in an accident, reach out to our team today.
No pressure, no upfront costs, just answers from a legal team that takes your recovery personally.
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