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October 7, 2023 by Greg Baumgartner
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.
A personal injury settlement is an agreement between the injured person and the party at fault. This can also include their insurance company. The settlement helps resolve a legal claim for damages. This settlement is typically negotiated outside of court and is a way for both parties to avoid a lengthy and costly trial.
Both sides have negotiated and agreed upon the settlement amount. Once the settlement is reached, the injured party will get a lump sum payment.
One of the most common questions about Texas personal injury settlements is whether or not they are taxable. The short answer is no; personal injury settlements in Texas are not taxable. 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.
Once a settlement is reached, the party at fault or their insurance will usually send a check to the injured person. This check is for the agreed-upon settlement amount. It will be made out to the injured person and their attorney, if applicable. The check will then be sent to the attorney’s office and deposited into a trust account.
Insurance companies want to retain money for as long as possible. Experienced personal injury attorneys will set a date to receive the funds when the case is settled.
The duration of a personal injury case in Texas varies. 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.
Generally, the larger the damages, the longer the case can take to get full compensation for your injuries. Insurance companies fight hard to keep from paying full damages.
Houston personal injury lawyer Greg Baumgartner
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.
However, if your case involves a lien such as a Medicare, Medicaid, or Hospital Lien, the negotiations with the lien holder may delay a payout.
Additionally, for larger settlements, you may opt for a structured settlement to fund the award.
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 essential to carefully consider the settlement offer and consult with a personal injury lawyer before making a decision. 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.
If the injured party rejects the settlement offer, they may continue to bargain for a better result. Or file a lawsuit against the at-fault party. More negotiations often occur before going to court and presenting evidence to a judge or jury. Also, in Houston, the courts almost always order mediation before a case goes to trial. The outcome of the trial will determine the amount of compensation the injured party will receive.
The length of a personal injury lawsuit in Texas can vary depending on the case’s complexity and the court’s schedule. Sometimes, a trial can take several months; in others, it may take a year or more. It is essential to note that the longer a case lasts, the more expensive it can become, as legal fees and court costs can accumulate over time.
Many car accident injury cases can be settled within 2 to 6 months. This happens after medical treatment is done and records are collected. However, with some insurance companies, it can take longer.
If a lawsuit is filed, it can take a considerable amount of time to resolve. Discovery will happen, and the courts in Harris County are busy. Getting to trial can take a year or more.
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 that it stops the insurance company from taking advantage of you.
A personal injury lawyer can help you get a fair settlement. They can gather evidence for your claim and represent you in court if needed. They can also handle all communication with the at-fault party and their insurance company, allowing you to focus on your recovery.
Getting a personal injury settlement in Texas means negotiating with the person at fault or their insurance company. You will receive a one-time 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.
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:
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.
Don’t simply look for an average settlement. Seek what is fair and reasonable for your case.
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.
If your case goes to trial, a personal injury lawyer can represent you in court. They can argue your case before a judge or jury and work to ensure that you receive the compensation you deserve.
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.
Working with a personal injury lawyer can help you get the compensation you deserve. They can also make the legal process less stressful. If you have been hurt in an accident, it is important to talk to a personal injury lawyer in Houston. They can help you understand your legal options.
Contact Baumgartner Law Firm in Houston for help with a personal injury case.
6711 Cypress Creek Pkwy, Houston, TX, 77069
(281) 587-1111
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Since establishing Baumgartner Law Firm in 1985, Greg Baumgartner has built a reputation as one of Houston’s leading personal injury attorneys, dedicated to representing severely injured victims and families who have lost loved ones due to negligence.
Greg holds two law degrees, a distinction earned by less than 1% of all attorneys, demonstrating his exceptional legal expertise. He is also a prestigious Trial Lawyers College graduate, further enhancing his skills in trial advocacy and litigation.
His relentless commitment to legal excellence and client advocacy has earned him recognition from prestigious organizations, including Super Lawyers, the Top 100 Trial Lawyers, and many others.
With decades of experience, Greg has consistently received top peer reviews. He holds a preeminent rating, a testament to his unwavering dedication to securing justice and maximum compensation for his clients.
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