What Costs Are Deducted from a Personal Injury Settlement?

If you receive a personal injury settlement, your “take-home” amount will depend on the costs incurred while pursuing your claim. These include your attorneys’ fees and court costs, among others. If you have outstanding medical bills, your settlement may also be used to pay what you owe. Learn more from an experienced Allentown personal injury lawyer at Drake, Hileman & Davis, PC.

When you have a personal injury claim, the best outcome is a settlement that fairly compensates you for your accident-related losses. If you receive a fair settlement, you won’t have to take your case to trial, and you can shift your focus to moving on with your life.

However, the amount you receive in a personal injury settlement isn’t necessarily the amount you will take home. In most cases, multiple costs must be deducted to determine your “take-home” amount. When you hire an experienced Allentown personal injury lawyer, your lawyer will make sure you know your “take-home” amount before you settle so you can make an informed decision about whether to accept the insurance company’s offer or keep fighting for more.

What Costs Will Need to Be Paid Out of Your Settlement?

Personal injury claims are far more complex than most people realize. While hiring a personal injury lawyer is the first step toward the financial compensation you deserve, pursuing your claim may also require hiring an investigator, medical expert, and other professionals. Additionally, while most successful personal injury claims settle before trial, you may still need to go to court to obtain relevant evidence and ensure insurance companies follow the law.

With this in mind, several costs can be involved in pursuing a personal injury claim after a serious accident in Allentown. Any costs incurred while pursuing your claim will be deducted from your settlement. Some examples of common costs in personal injury cases include:

• Attorneys’ Fees – Personal injury lawyers represent their clients on a contingency-fee basis. This lets accident victims pursue their claims without paying anything out of pocket. If an accident victim’s personal injury claim is successful, the attorney’s contingency fees are paid from the settlement funds recovered.
• Investigator and Expert Witness Fees – Investigators’ fees and expert witnesses’ fees are also paid out of accident victims’ settlements. Hiring an investigator promptly is critical to gather forensic evidence before it disappears, and hiring expert witnesses can be critical to proving why an accident happened and how much victims are entitled to recover.
• Court Costs – Filing a lawsuit is critical to ensure the statute of limitations for an accident victim’s personal injury claim doesn’t expire. Going to court may also be necessary for other reasons. Typically, personal injury law firms cover their clients’ court costs up front and recoup them from settlements in successful cases.
• Costs for Retrieving Medical Records – Healthcare providers can charge for copies of patients’ medical records, and they do so in many cases. Here too, most personal injury law firms will cover these costs initially with the understanding that they will be reimbursed if their efforts lead to a settlement or verdict.  
• Litigation Expenses – From paying for deposition transcripts to hiring accident reconstructionists and preparing other evidence, personal injury claims can involve other costs as well. Your personal injury lawyer should help you decide which costs make sense to incur, and your engagement agreement should make clear that you are only responsible for these costs if your case is successful.

While these are some of the most common costs involved in pursuing a personal injury claim, this isn’t necessarily a comprehensive list. Every case is unique, and the steps (and costs) involved in pursuing a favorable settlement will ultimately depend on the specific circumstances involved.

FAQs: Seeking a Personal Injury Settlement After an Accident

How can I determine if a settlement offer is fair?

Determining if a settlement offer is fair requires a comprehensive understanding of the damages you are entitled to recover. Once you hire an Allentown personal injury lawyer, your lawyer can determine what constitutes “just” compensation for your present and future medical bills, lost earnings, pain and suffering, and other financial and non-financial losses.

Will my medical bills be deducted from my personal injury settlement?

If you have outstanding medical bills related to your accident, these may also be deducted from your personal injury settlement. If your health insurer has covered any costs that are also covered under your settlement, your insurer may be entitled to reimbursement (or “subrogation”) as well.

Is it worth hiring a personal injury lawyer if my legal fees will be deducted from my settlement?

Even after accounting for your lawyer’s contingency fees, it can still be worth hiring an experienced personal injury lawyer to represent you. Your lawyer can take all necessary steps to prove liability and fully document the losses you are entitled to recover.

How We Help Accident Victims in Allentown, PA

Our lawyers are committed to helping accident victims recover just compensation. If you have a personal injury claim in Allentown, we can fight for just compensation on your behalf and handle every aspect of your claim with your best interests in mind. The sooner you contact us, the more we can do to help—so we strongly encourage you to schedule a free initial consultation today.

Schedule a Free Initial Consultation with an Allentown Personal Injury Lawyer Today

Are you entitled to financial compensation for your accident? Contact us to find out. To schedule a free initial consultation with an experienced Allentown personal injury lawyer as soon as possible, call 888-777-7098 or inquire online now.