Law Offices of Kennedy and Brown

How Are Personal Injury Settlements Paid Out?


Personal injury settlements usually come in the form of a lump sum check from the insurance company made payable to the client and the attorney. The settlement check(s) is deposited into the attorney’s trust account for disbursement including reimbursement for litigation costs, payment of unpaid medical expenses and attorney fees with the balance being paid to the client. Some clients will enter into a structured settlement whereby they receive monthly or yearly payments for a certain period of time.

Will I Have To Pay Taxes On My Personal Injury Settlement?

Non-economic damages for a personal injury are not taxable, although there are certain circumstances under which taxes can come into play.

Can I Reject A Settlement Offer?

The client always has the last word on accepting or rejecting a settlement offer. Once it is rejected, the offer will be off the table and there will be negotiations between the two sides. An attorney should be able to advise a client as to whether or not they are being offered a fair settlement, and therefore whether or not they should accept it.

Are There Potential Factors That May Limit Or Minimize The Settlement Offer In A Personal Injury Case?

The nature and extent of the injuries in a personal injury case could minimize the settlement amount. In an auto case involving limited tort automobile insurance, the injured party would have to breach the threshold of incurring a serious impairment of a bodily function before they could recover for their injuries or non-economic damages such as pain and suffering.

How Is My Personal Injury Attorney Compensated?

In our practice and many others throughout Pennsylvania, personal injury attorneys work on a contingent fee basis, which means that the attorney will receive a percentage of the total amount of the settlement, recovery, or trial award.

What Can I Do To Help My Attorney Get The Best Possible Settlement In My Personal Injury Case?

A client can help their attorney by maintaining communication with them, keeping them up to date on the progress of their treatment and medical recommendations, and listening to their advice.

For more information on Payment Of Personal Injury Settlements, a free consultation is your next best step. Get the information and legal answers you are seeking by calling (570) 203-1333 today.

John H. Kennedy, ESQ.

Call For A Free Consultation. Only Pay When We Win.
(570) 203-1333

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