Verdicts and large settlements make headlines all around the world. This can make it appear as though plaintiffs everywhere are getting rich. However, this is relatively rare in a personal injury case. The legal agreement between a client and their lawyer decides distribution. For example, let’s say there is a settlement of $100,000.00. Review the following points to have a clear understanding of the distribution process on an actual car accident settlement.
Car Accident Lawsuit Legal Fees
Typically, car accident attorneys charge clients a contingency fee, as opposed to an hourly fee. A contingency fee means the attorney will not get paid any legal fees unless you win the case. If you win the case and receive settlement, the lawyer or law firm will receive a percentage of money from that settlement.
This fee can vary from state to state. However, you can expect it to be about 20 to 40 percent of the settlement amount. Let’s assume it is 33 percent for this example. Sometimes, several firms split this fee. The more severe your injuries are, the more important it is for you to hire an attorney.
For our example, let’s assume your attorney gets paid about $33,000 from your settlement for his or her work.
Accident Injury Liens and Medical Expenses
When you are the victim of a car accident and have filed a personal injury lawsuit to recover the cost of medical bills, those who paid for these medical costs are able to file a medical lien against your settlement proceeds. A lien is a demand for repayment that is placed against your personal injury case. In addition, your health insurance provider may also issue a lien to recover any amount it spends on your personal injury accident treatment.
In exchange for treatment provided before your case settles, medical and health insurance providers often seek repayment from your settlement.
A general rule of thumb is to assume the recovery amount may be up to three times what the cost of the medical expenses are. However, it is possible to get these establishments to accept less than the amount they paid. Your attorney can typically reduce the rate of medical expenses to two-thirds of the total cost. For our example, the plaintiff’s medical expenses were about $35,000. Let’s assume your lawyer can negotiate these down to about $23,000.
Car Accident Lawsuit Legal Funding
If you are out of work as a result of your injury, car accident loans can be a great option to help you financially withstand a lengthy process. Pre settlement funding is typically meant for plaintiffs who are seriously injured, unable to return to work and have no other resources available for living expenses while waiting for their personal injury claim to settle. In most cases, legal funding companies offer a no-win, no-pay policy. This means that if you don’t win the case, you don’t need to pay them back.
The amount the client qualifies for depends on many factors, including liability, insurance coverage, damages and previous advances. Pre settlement payment typically comes out of the client’s part of settlement. At Uplift, our direct funding predominantly involves simple, non-compounding interest. For this example, let’s assume that there is $5,000 in advances and $8,000 in payback due.
The Plaintiff’s Portion of a Car Accident Settlement
In the end, our hypothetical client ends up with about $36,000 from the settlement. This covers lost wages, pain and suffering and any other assessed damages.
Uplift Legal Funding
Many plaintiff’s file a suit, not to get rich, but to take steps to prevent others from going through what they had to go through. It is important to create a safe community where people can protect their rights and hold guilty parties accountable for their actions.
Uplift Legal Funding serves plaintiffs nationwide and will help ease your financial strain and get you the settlement amount you deserve. It is time to take control of your legal journey! Apply online or give us a call at (800) 385-3660.