What happens to the funds from a personal injury case? What is the breakdown of accounting?
These are questions you will want answered when you have hired a personal injury lawyer and a settlement or another type of resolution has been reached in your case. You should anticipate a thorough accounting statement from the attorney regarding the distribution of the compensation money.
This blog post will discuss what typically happens with the funds from a personal injury lawsuit and how much of them go where. We'll also review contingency fees—which is typical for personal injury attorneys.
Your lawyer should give you a thorough statement that addresses the fund disbursement that results from your settlement or resolution. The following further explains this:
A settlement statement, also often referred to as an allocation sheet, will be used to detail the accounting. This should summarize all of the costs incurred by the attorney or law firm that is expected to be reimbursed by you and any medical payments or other claims that must be paid from the settlement funds.
If you have any questions about any item on the settlement statement, your lawyer will provide clarification or information to back up the item.
Furthermore, before agreeing to any settlement, be sure to study your engagement letter or agreement outlining your legal representation's compensation and expenses coverage.
Contingency fees are an arrangement in which the client does not pay the attorney upfront for their case but instead pays only when it is successfully won.
The fees are typically a percentage of whatever they receive with a settlement or award and usually range from one-third to one-half of any settlement or award won.
For example, if you win $500,000 in your personal injury case, and the agreed contingency fee is 33%, your lawyer would take home about $165,000, while your share will be the difference (minus taxes).
Suppose you or a loved one has suffered a personal injury. In that case, it is always best to consult with one of the experienced personal injury attorneys at Rose Sanders, PLLC, before deciding on how to proceed with your claim going forward.
Our attorneys can help explain exactly how these cases work and what options are available to you if mutually agreeable.
One of the considerations most people make when deciding about representation is regarding the breakdown of the settlement should you be successful. If you are uncertain about how much of your settlement you'll receive or if they will be working on a contingency fee basis.
First, the good news: if your case settles successfully and you are awarded money as a result, you will know exactly where the funds will go before the case is underway. That is because, by law, the attorney must turn over the funds directly to the client who won them in court (or through settlement) as outlined in the settlement statement.
The settlement statement also outlines that any attorney and service fees are deducted automatically before handing over the payment — and these fees are usually very reasonable, as we'll discuss below.
Now, the less-than-good news: not all cases settle. If your case goes to trial and you lose (and receive no settlement beforehand), then an entirely different set of rules comes into play.
This is why it's essential to understand the breakdown of the accounting and whether or not this applies to your particular situation to make an informed decision for your best option.
If your case settles out of court, then all funds will be held by your attorney in a trust account until they're ready to be disbursed. Reputable law firms will have these steps appropriately completed.
Failure to do so can lead to negative consequences such as having charges against them or even getting disbarred.
The law firm or attorney will then release the funds to you, deducting court costs and their fees for handling your case (the median amount being around 33% of the settlement or compensation you are awarded).
Before representing a client in a personal injury issue, the State Bar of Texas requires attorneys to have a signed representation agreement. The attorney's rights and responsibilities are outlined in the document, as is the client's.
As this document is so essential, it is crucial that before agreeing to and signing the representation agreement, you should read and comprehend the contract.
While most attorneys use comparable paperwork and charge similar percentages of costs, before signing an agreement, you should ensure that the attorney you choose to represent you in a personal injury case is someone with whom you develop a rapport and feel comfortable.
It's also critical that you go with a respected law firm, such as Rose Sanders, PLLC, to represent you in your personal injury lawsuit.
Because the litigation process can be very stressful and time-consuming, it's crucial that you have confidence in the attorney you pick to assist you through it.
The best attorneys are not only effective, but they also have time for you. Being successful in a personal injury case often means being available when it counts most—which is why we suggest avoiding lawyers who seem too busy signing their next client's papers before moving on to another victory.
The tone of your consultation should be casual instead of formal and lawyer-like. You should feel like you're speaking to a friend or family member instead of someone who is intimidating and may make you nervous.
The best attorneys will communicate with their clients in simple terms, not legal jargon that can confuse even the most educated layperson.
It is important to ask any questions you might be having up front and at the time of your initial consultation. This is because the attorney you initially meet with may not be the one who will be responsible for your case.
When you're about to sign anything with an attorney, make sure they are the one who takes care of all of your legal concerns rather than just one.
At Rose Sanders Law Firm, PLLC, we make it our mission to help people who have been injured due to no fault of their own obtain justice and the compensation they deserve for their injuries. We offer free consultations, contingency fee arrangements and have extensive experience in all types of personal injury cases.
Spend a little time investigating the law firm and the attorney you are considering, and you will save yourself a lot of grief later on!
Contact Rose Sanders Law Firm, PLLC today to schedule a consultation with one of our attorneys. We have been serving Texans for many years, and we're confident that you'll be pleased with our service!
Contact us today for a free case evaluation. Our attorneys are ready to help answer any questions that you might have.
What happens to the funds from a personal injury case? What is the breakdown of accounting?
Once a case settles, Your lawyer should give you a thorough statement that addresses the fund disbursement that results from your settlement or resolution.
This will include the settlement statement and contingency fees.
Before representing a client in a personal injury issue, the State Bar of Texas requires attorneys to have a signed representation agreement. The attorney's rights and responsibilities are outlined in the document, as is the client's.
Therefore, you should have a firm understanding of how the accounting will work once the case has been settled.
Contact Rose Sanders Law Firm, PLLC today to schedule a free consultation with one of our attorneys. We have been serving Texans for many years, and we're confident that you'll be pleased with our service!
