Personal injury settlements in New York are paid out in different ways, depending on the terms of your settlement agreement and what payment method you decide will most benefit you after consulting with your lawyer about your various options. When you have a New York personal injury lawyer handling your case, we will answer your questions in detail and explain how the settlement process and payout will work based on the specific facts of your case.
- You Might Have Options for How to Receive the Payout
- You Will Not Receive Your Settlement Payment Directly
- Timing of Payment After a New York Injury Settlement
- What Damages are Included in a New York Personal Injury Settlement?
- What Should I Do if I Believe I Deserve a Personal Injury Settlement in New York?
- Talk to Our Team About Your New York Personal Injury Case
You Might Have Options for How to Receive the Payout
There are two primary ways that personal injury settlements are paid out in New York. These types of settlement payments are:
- Lump-Sum Payments: A one-time payment that gives you access to all of the money recovered at the same time
- Structured Settlements: Periodic payments you receive annually or monthly over a set number of years
There are pros and cons to each type of payment, but your personal circumstances and financial situation could make one option better than the other for you. Your attorney will explain your options and empower you to make the right decision for you and your family.
For a free legal consultation, call (516) 932-0400
You Will Not Receive Your Settlement Payment Directly
It is important to remember that you will not receive your payout directly. The insurance carrier or liable party will issue payment to your attorney’s law firm. In cases we handle, our law firm will put this money in a special holding account, often referred to as an “Attorney Trust Account,” that allows us to process the payment and take out any necessary deductions. Every case will have one or more necessary deductions. This could include:
- Your attorney’s fees, which are based on a standard contingency-fee structure and always paid from the money recovered in the case
- Medical liens or any outstanding medical bills that must be paid under agreements with your creditors
- Case-related costs, such as fees for experts or filing fees
- Other deductions, such as additional liens
Generally, personal injury payouts are not taxed. In the vast majority of cases, taxes should not be deducted from your payout, and you should not have to pay for the money you recover as income.
Timing of Payment After a New York Injury Settlement
Many injury victims need cash as soon as possible because of their injuries, being out of work, and needing to cover additional expenses related to their recovery. However, the claims process takes time. Some cases take longer than others. Factors that could delay a case include:
- Complex accidents with multiple liable parties
- Liable parties who refuse to take responsibility
- Insurance companies that purposefully delay the case
- Difficulty getting the insurer to pay an appropriate settlement
- Cases where you must sue a large corporation or government agency
It could still take several weeks or longer to receive your payment after your New York personal injury settlement or verdict. This is due to several possible reasons, such as: Processing time for the at-fault insurer to issue the check; Delay as the check clears and the funds are actually available for disbursement from the Attorney Trust Account; The time involved with confirming applicable lien amounts, as many lien holders, most especially government agencies that may have a lien, typically take an extensive amount of time to confirm lien amounts. While we are always eager to get our clients paid, these factors can create unavoidable delays in issuing payment. If you have concerns about paying medical bills on time or making other payments, discuss these worries with your attorney. We will explain your options and what you should expect in terms of how personal injury settlements are paid out in New York. We will also work with the insurer to make sure your payment is processed on time.
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What Damages are Included in a New York Personal Injury Settlement?
Your attorney will seek appropriate damages for you in your injury case. This will include all losses connected with your accident, injuries, and necessary treatments. We will gather bills, medical records, receipts, and other documentation of your costs and losses. This evidence will support a strong argument for a settlement or court award. You might be entitled to both economic and non-economic damages. Some examples of the types of damages you might recover compensation for in a personal injury case include:
- Pain and suffering
- Emotional distress connected with physical injuries
- Other intangible losses
- Medical care costs
- Future care and support needs
- Income losses from missing work
- Reduced earning ability for long-term injuries or permanent impairments
- Related expenses
Do not hesitate to ask questions about your settlement amount, what you qualify for, or how you will receive payment. Your attorney is your best resource for understanding the recoverable damages in your case.
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What Should I Do if I Believe I Deserve a Personal Injury Settlement in New York?
If you want to hold someone else accountable for causing your accident or incident in New York, you should contact a personal injury law firm as soon as possible. Many provide a free case review where you have the opportunity to learn more about your legal options and how that firm would approach a case like yours. Under New York Civil Practice Laws & Rules § 214, you only have a limited time to sue a negligent party for harming you, so it is imperative to act quickly after your accident to explore your options and next steps. (It is also very important to note that a shorter statute of limitations may apply to your situation, depending upon the circumstances of your case. It is best to take advantage of a free case review with our firm so that you know exactly what deadlines you are facing and what your best options for legal action are.) Our personal injury attorneys work based on contingency, so your current financial state should not affect your ability to hire us to represent you.
Talk to Our Team About Your New York Personal Injury Case
At Friedman & Simon, L.L.P., our lawyers represent the injured on Long Island and elsewhere in the greater New York metropolitan area. We provide free consultations for victims and their families and seek compensation based on the damages incurred. We know how to seek, secure, and process a New York personal injury settlement payout for our clients. Learn more about how personal injury settlements are paid out in New York by contacting us today.
Call or text (516) 932-0400 or complete a Free Case Evaluation form