When you receive your personal injury settlement, you expect to pay the legal fees and keep the rest of the money. However, this may not be the case due to other expenses that may be deducted from your disbursement. Such expenses may include the following.
Personal injury cases last a long time, and by that time, your health insurers may have settled your medical bills. This may include Medicaid, Medicare, and even private medical insurance providers. Fortunately, you may not have to pay back the whole amount that you owe. It depends on your state's laws as well as the policies of the relevant insurance carriers.
It is not just medical insurers who may hold liens against your disbarment. Even others such as workers compensation or auto insurers may hold liens against your settlement disbursement. For example, your medical bills or lost wages may have been settled by a worker's insurance fund.
Outstanding Child Support
Child support is one of the liabilities you can never fully escape. This is because child support agencies often have the authority to garnish many types of incomes such as wages and personal injury settlements. Thus, if you have outstanding child support, then the agency may deduct it from your personal injury disbursement.
Copayments and Deductibles
Although your medical provider will need your copayment when you go for treatment, there may be extenuating circumstances that preclude you from settling such bills. For example, you may be out of work and not having enough money for the copayment.
In such a case, you may negotiate with your provider for a "hold agreement." This means the provider agrees to place your bills on hold until the injury claim is settled. This money will be deducted from your personal injury compensation.
An accident can devastate and put your life to a standstill. Although personal injury attorneys may agree to handle your case without upfront payment, you may need money for other expenses. For example, if your injury has put you out of work, you still need to pay your rent and settle your bills. If you apply for and receive pre-settlement funding, then you have to pay it back (via the disbursement) when you receive your compensation.
It's important to notify your personal injury attorney about any outstanding financial obligations that may reduce your disbursement. Many parties, such as medical insurers, may accept negotiated payments that may be less than the amount you owe them. Only your lawyer, one like Richard Glazer Law Office, may have the knowledge and skills to handle such negotiations.Share