Accidents in South Carolina can have a significant physical, emotional, and financial impact on an injured person. If you’ve sustained an injury in an accident and are considering legal action, you might wonder how quickly you can recover compensation. How are personal injury settlements paid out? After all, you likely have medical bills piling up and other financial needs to address as soon as possible. Here’s how the payout process for injury settlements works in South Carolina.
The Two Main Ways You’ll Recover Compensation in a Personal Injury Claim
What are personal injury compensations? If you win your personal injury claim in South Carolina, your compensation will come from one of two sources. The likely option is that your case will end in an insurance settlement. A settlement is a legal agreement between you and the liable party’s insurance company in which you receive compensation in exchange for agreeing to release them from further liability.
Most personal injury cases end in settlements, even if the case goes to trial. The reason settlements are so common is that they provide certainty to all the parties involved. Additionally, trials are risky and predictable, where an insurance settlement provides a guaranteed amount to the injured party while closing the case for the insurance company.
If your case goes to trial, though, your compensation will come from a court award. The judge or jury will decide how much money you receive, and the liable party or their insurance company has to give you however much compensation the court awards. You might receive more money by taking a case to trial, but this comes with the risk of letting a judge or jury decide the matter and potentially recovering nothing.
When You Get Your Money from an Insurance Settlement or Trial Award
Reaching a settlement agreement or getting a favorable decision from a judge or jury does not mean you’ll get your money immediately. So, how are personal injury settlements paid out? Several steps have to happen before you get your check:
- Post-Trial Motions – After a trial verdict, the losing party may file post-trial motions, such as motions for a new trial or to reduce the award. The court must resolve these issues before you can receive your money.
- Sign the Release Form – For settlements, you’ll need to sign a release form stating that you agree to the settlement money and will not pursue further legal action related to the accident. This step is not necessary for trial awards.
- Insurance Processing or Payment by Defendant – For settlements, the insurance company processes the payment, which can take a few weeks. For trial awards, the defendant must arrange to pay the awarded amount, either directly or through their insurance.
- Payment to Your Lawyer – The settlement check or trial award payment usually goes to your lawyer first. Your attorney will then deposit it into a trust account while they handle the final details.
- Deduct Fees and Expenses – Your lawyer will deduct their fees, any outstanding medical bills, and other legal expenses from the settlement or award amount.
- Receive Your Payment – Your lawyer will issue a check for the remaining amount after deductions. This is your final payment, which you can then use as needed.
Different Payment Structures in Personal Injury Claims
What happens after the personal injury settlements are paid out? After you receive compensation in a personal injury case, the payment is usually structured as a lump sum or a structured settlement.
Lump-Sum Payments
A lump-sum payment is when you receive the entire settlement amount or trial award at once. This method provides immediate access to the full compensation, allowing you to pay off medical bills, cover lost wages, and handle other expenses immediately. One of the main advantages of a lump-sum payment is the financial flexibility it offers. However, managing a large amount of money can be challenging, and spending it too quickly is risky.
Structured Settlements
A structured settlement provides compensation through a series of regular payments over a set period. You can schedule these payments monthly, annually, or at other intervals that suit your needs. Structured settlements can offer financial stability and long-term security, ensuring that you have a steady income stream to cover ongoing medical expenses and living costs. This approach can also provide tax benefits, as the income from structured settlements is typically tax-free. However, the main drawback is that you won’t have immediate access to the full amount. This might be limiting if you have significant immediate expenses.
Choosing between a lump-sum payment and a structured settlement depends on your financial situation, future needs, and personal preferences. An attorney can help you decide which option is best for you.
What’s Included in a Personal Injury Settlement or Trial Award?
Your personal injury settlement depends on your expenses, injury severity, your role in the accident, and other factors. While the amount varies across cases, working with a knowledgeable South Carolina personal injury lawyer can help you reach a settlement or award that accounts for all your eligible losses, including:
- Past and future medical expenses
- Lost income
- Reduced future earning potential
- Pain and suffering
- Emotional distress
- Diminished quality of life
- Loss of enjoyment of life
- Damaged personal property
How Maxey McFarland Law Can Help You Maximize Your Compensation
At Maxey McFarland Law, we are dedicated to helping our clients get the maximum compensation after devastating injury accidents. Our experienced personal injury attorneys will manage all the legal aspects of your case. Our firm will gather evidence and negotiate with insurance companies to represent you in court if necessary. We will handle every detail of your case with professionalism and attention to detail, so you don’t have to worry about the complex legal process. Call (864) 900-4231 now or complete our contact form to get started with a free consultation. With our law firm’s support and positive track record, you can get through this challenging time with confidence, knowing we are working hard to achieve the best possible outcome for you.
Related Posts:
How Car Accident Settlements Work
What Happens if You’re Partially at Fault in a Personal Injury Case in South Carolina?