Personal Injury Settlements
If you or a loved one is dealing with the aftermath of an injury that resulted from an accident, you may feel overwhelmed by the prospect of filing a claim with your insurance company, going through negotiations and going to court. Although there are many details to attend to, it is important to note that over 90% of personal injury cases are settled out of court, before a trial is even necessary.
Defining a Settlement
A settlement is an agreement that is reached between two parties without having to go to trial. In a personal injury case, a settlement will include money, or damages, that the defendant will pay to the injured party or plaintiff.
Reaching a settlement is certainly preferable to going to trial. However, it is important to note that it may take months or years to reach a settlement.
Settlement Details
If you receive a settlement that awards you damages related to a physical injury, these funds are not taxable. Also known as compensatory damages, these funds are intended to compensate you for expenses related to your medical bills, lost wages. Other damages, including those for pain and suffering as well other general damages, are not eligible for taxation.
Filing a personal injury claim is a complicated process. If you have been injured and are seeking damages in your case, it is in your best interest to seek the assistance of an experienced personal injury attorney in your area. Your attorney will serve as your advocate every step of the way and will maximize your chances of obtaining a favorable settlement.