How is a Personal Injury Settlement Paid Out in Illinois?

 Posted on August 29, 2023 in Personal Injury

Settling a personal injury claim involves more than agreeing to a total dollar amount. Understanding how the settlement funds are paid out, liens are addressed, and legal fees are deducted is essential. This article provides an overview of what happens after a settlement is reached so injury victims know what to expect.

The Basic Settlement Payment Process

Typically, the responsible party's insurance provider will issue a payment after reaching a resolution in an Illinois personal injury case, whether through settlement or a court judgment. This payment, made in the form of a check, will be for the entire settlement amount and payable to the plaintiff and their attorney.

The plaintiff’s attorney will deposit the check into a secure trust account. After deducting their agreed-upon attorney's fees and case-related expenses, the lawyer will promptly distribute the remaining sum to the plaintiff.

Settlement Funds Go Towards Itemized Damages

The total settlement amount is allocated to compensate for specific damages sustained. These itemized damages typically include:

• Medical expenses, including both past expenses incurred and projected future costs

• Lost income and long-term diminished earning capacity

• Repair or replacement costs for any property damaged

• Pain, suffering, mental anguish

• Loss of everyday life enjoyment

• Emotional distress

The settlement breakdown outlines how much of the total is awarded for each damage type. This guides the distribution of the funds.

Satisfying Liens and Paying Off Debts

Before dispersing settlement funds, the plaintiff’s attorney will satisfy any outstanding liens or pay back insurers or other entities. This repaying of liens is mandatory to prevent further legal action against the plaintiff.

Common liens include medical insurance providers, Medicare/Medicaid, hospitals, or other parties that cover initial injury costs. Final judgments and settlement amounts legally must go towards reimbursing these debts.

Periodic Payment Options

While lump sum payments are typical, some large personal injury settlements are structured to be paid out over an extended period. This is common in cases involving severe long-term or permanent injuries requiring substantial ongoing medical treatment and extended loss of earnings.

Contact a Springfield Personal Injury Lawyer

If you need help navigating a potential settlement or want to pursue one, call Kanoski Bresney at 888-826-8682. With an Illinois personal injury attorney on your side, you can get help to know which next steps may be in your best interest. Contact us for a free consultation.

Source: 

https://ilga.gov/legislation/ilcs/documents/073500050K2-2301.htm