You may be entitled to compensation if you have been injured in an accident in Texas. Personal injury settlements in Texas can help cover medical expenses, lost wages, and other damages resulting from the accident. However, many people are unsure of how these settlements are paid out in Texas.
In this article, Houston’s personal injury lawyer, Greg Baumgartner, discusses the process of receiving a personal injury settlement in Texas and answers some common questions.
WHAT IS A PERSONAL INJURY SETTLEMENT?
A personal injury settlement is an agreement between the injured party and the at-fault party (or their insurance company) to resolve a legal claim for damages. This settlement is typically reached outside of court and is a way for both parties to avoid a lengthy and costly trial.
The settlement amount is negotiated and agreed upon by both parties and once the settlement is reached, the injured party will receive a lump sum payment.
ARE PERSONAL INJURY SETTLEMENTS TAXABLE IN TEXAS?
One of the most common questions about personal injury settlements is whether or not they are taxable in Texas. The short answer is no; personal injury settlements are not taxable in Texas. This is because the IRS does not consider personal injury settlements as income. However, there are some exceptions to this rule.
This portion may be taxable if your settlement includes compensation for lost wages. Additionally, these may be taxable if you receive punitive damages as part of your settlement. It is important to consult with a tax professional to determine the tax implications of your specific settlement. Take advantage of a consultation with a punitive damages lawyer for more information.
HOW ARE PERSONAL INJURY SETTLEMENTS PAID OUT IN TEXAS?
Once a settlement is reached, the at-fault party or their insurance company will typically issue a check to the injured party. This check will be for the agreed-upon settlement amount and will be made payable to the injured party and their attorney if they have one. The check will then be sent to the attorney’s office and deposited into a trust account.
HOW LONG DOES IT TAKE TO RECEIVE A PERSONAL INJURY SETTLEMENT IN TEXAS?
How long a personal injury case takes in Texas will vary. Sometimes, a settlement can be reached quickly; in others, it may take months or even years. The timeline for receiving a settlement can depend on various factors, including the case’s complexity, the at-fault party’s willingness to negotiate, and the availability of evidence.
Once a settlement is reached, the check can take a few weeks to be issued and sent to the injured party’s attorney. From there, it may take a few more weeks for the check to be deposited and for the funds to be distributed to the injured party.
Additionally, on larger settlements, you may choose a structured settlement to fund the award.
WHAT HAPPENS IF THE SETTLEMENT AMOUNT IS NOT ENOUGH?
Sometimes, the settlement amount may not cover the injured party’s expenses. If so, the injured party may reject the settlement and pursue a lawsuit instead. This can be lengthy and costly but may result in a higher payout.
It is important to consider the settlement offer carefully and consult with a personal injury lawyer before deciding. An experienced lawyer can help you determine if the settlement offer is fair and if it is in your best interest to accept or reject it.
One common reason for an insufficient settlement is the lack of insurance coverage. If the negligent party does not have enough insurance, your settlement amount may be limited by financial realities.
WHAT HAPPENS IF THE SETTLEMENT OFFER IS REJECTED?
If the injured party rejects the settlement offer, they may file a lawsuit against the at-fault party. This will involve going to court and presenting evidence to a judge or jury. The outcome of the trial will determine the amount of compensation the injured party will receive.
HOW LONG DOES A PERSONAL INJURY LAWSUIT TAKE IN TEXAS?
The length of a personal injury lawsuit in Texas can vary depending on the complexity of the case and the court’s schedule. Sometimes, a trial can take several months; in others, it may take a year or more. It is important to note that the longer a case goes on, the more expensive it can become, as legal fees and court costs can add up over time.
Typical car accident injury cases can settle 2 to 6 months after medical treatment is completed and medical records are obtained. However, with some insurance companies, it can take longer.
If a lawsuit is filed, the case can take much longer to resolve.
HOW CAN A PERSONAL INJURY LAWYER HELP?
The legal process of a personal injury claim can be overwhelming, especially if you are dealing with injuries and medical expenses. Hiring a personal injury lawyer can help ease the burden and ensure you receive the compensation you deserve. Among the best reasons to hire a personal injury lawyer is it stops the insurance company from taking advantage of you.
A personal injury lawyer can help you negotiate a fair settlement, gather evidence to support your claim, and represent you in court if necessary. They can also handle all communication with the at-fault party and their insurance company, allowing you to focus on your recovery.
Receiving a personal injury settlement in Texas involves negotiating with the at-fault party or their insurance company and receiving a lump sum payment. While these settlements are typically not taxable, there are some exceptions. The injured party may reject the offer and pursue a lawsuit if the settlement amount is insufficient. In this case, consulting with a personal injury lawyer is important to ensure you receive fair compensation.
WHY WORK WITH A PERSONAL INJURY LAWYER?
Navigating the legal process of a personal injury claim can be overwhelming, especially if you are dealing with injuries and medical expenses. Hiring a personal injury lawyer can help ease the burden and ensure you receive the compensation you deserve. Here are some of the benefits of working with a personal injury lawyer:
Negotiating a Fair Settlement
Personal injury lawyers have experience negotiating with insurance companies and can help you get a fair settlement. They understand insurance companies’ tactics to reduce the compensation paid out and can help you avoid settling for less than you deserve.
Getting Vital Evidence
Personal injury lawyers can help you gather the evidence to support your claim. This includes medical records, police reports, witness statements, and other documentation supporting your case. They can also work with experts to build a strong case on your behalf.
A personal injury lawyer can represent you in court if your case goes to trial. They can argue your case before a judge or jury and work to ensure that you receive the compensation you deserve.
Handling Communication with the At-Fault Party and Their Insurance Company
Personal injury lawyers can handle all communication with the at-fault party and their insurance company. This can be beneficial, as it ensures you do not say anything that could jeopardize your case. Additionally, it allows you to focus on your recovery while your lawyer handles the legal aspects of your case.
Overall, working with a personal injury lawyer can help you receive the compensation you deserve and can help make the legal process less stressful. If you have been injured in an accident, consulting with a personal injury lawyer in Houston is important to understand your legal options.
Contact the Personal Injury Attorney in Houston at Baumgartner Law Firm for Help
Contact Baumgartner Law Firm in Houston for Help with a Personal Injury Case.
6711 Cypress Creek Pkwy, Houston, TX, 77069