How Much Money Will You Net From a Personal Injury Settlement?

September 2, 2018 by Barry Zlotowicz Law Firms  Personal Injury Claim 

How Much Money Will You Net From a Personal Injury Settlement?

Clients are often surprised at the conclusion of their case regarding how How much money will you net from your personal injury settlementmuch money they will net from their personal injury settlement. In this blog post you will learn how a personal injury settlement actually works and how much you can expect to walk away with. If you have any questions about this topic, please feel free to contact attorney Barry Zlotowicz at 847-305-4105.

Pieces of a personal injury settlement

When the insurance company makes you an offer to compensate you, all aspects of your case are (usually) encompassed in that offer (aside from property damage). Meaning that if you were offered $100,000 by Geico or State Farm to settle your case, that money is intended to compensate you for everything, including:

  • Medical bills
  • Pain and suffering
  • Lost wages
  • Health insurance lien
  • Medpay lien
  • Anything else

In addition, if you retained an attorney, the law firm’s attorneys’ fees and costs will come out of the $100,000 as well. Consequently, accident victims can be surprised as to what they will net at the end of their case.

So, how might your case look upon completion? If you look below, you will see the breakdown of a personal injury settlement I resolved and how a “settlement statement” (accounting of the costs of your case) might look:

SETTLEMENT  STATEMENT

Client: John Smith

State Farm Insurance Claim No.: 123456789

Date of Accident: June 1, 2010

TOTAL SETTLEMENT $100,000.00
DEDUCTIONS
Attorney Fees (33.3%) $33,333.33
File Expenses $645.00
Federal Express $25.00
ATI Physical Therapy $1,250.00*
Illinois Bone & Joint $7,400.00**
Open MRI $1,500.00
Geico Insurance Medpay lien $1,333.33
Blue Cross Blue Shield Insurance $7,000.00
TOTAL DEDUCTIONS $52,486.00

*Amount negotiated by Chicago Legal Group down from $2,500.00

**Amount negotiated by Chicago Legal Group down from $9,900.00

AMOUNT OF SETTLEMENT CHECK TO CLIENT: $47,513.34

As you can see, after you take out medical bills, liens, the health insurance lien and attorneys’ fees, the client’s net recovery is significantly less than the actual gross settlement amount.

Often the net amount is significantly less than what is showed here. In the above example, the victim’s medical bills were extremely small. Often the bills are much higher and as such, subtract much more from the potential settlement amount.

Also, there are many other expenses that could be deducted/owed out of the settlement proceeds including child support liens, money paid from a disability insurance policy, and more.

Bottom line is that trying to tie up the loose ends of a personal injury settlement can be confusing. Many people want to handle claims like these on their own or “pro se.” That is an option. But to be assured that all ends are tied, I strongly consider speaking to an attorney at 847-305-4105.


Disclaimer

This blog is for entertainment and informational purposes only. It is not intended as legal advice and the accuracy thereof is not warranted or guaranteed. This information is prone to errors and omissions. Use this information at your own risk. Reading this blog does not create an attorney-client relationship. All content in this blog is owned by the creator. This blog may include copyrighted information. Use of this information constitutes a “fair use” of this material.

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