We often cover the inner workings of personal injury claims here, and many of you have asked us a number of questions with regard to the compensation aspect of these cases. As you may be aware, the large majority of these cases are settled out of court, and we have already been into exactly why this is the case. What high-quality law firms like personal injury lawyers Philips Law Group will do for their clients is looking to get the highest possible amount of compensation for their claim, and the very best often deliver.
Talking of compensation then, let’s take a look at your most asked questions, and try to get you some answers.
What Can I Spend My Compensation On?
If you have been awarded compensation then the idea of it is to cover the costs which you have been forced to pay out because of the injury which you have sustained. This money is to pay for medical bills, transportation, and care and also to cover any lost income which you may have. In terms of how to spend the compensation, however, this is something which is completely up to you, and there are absolutely no limits on what you can do with this money.
Will I Get Taxed?
In the large majority of cases, you will not have to pay tax on the money that you are awarded in an out-of-court settlement or a judgment. The school of thought here is that the money is given to you to cover costs that you have already paid out, which you will also have already paid tax on. There are some instances whereby you will have to pay tax, but your lawyer will let you know if this is the case for your particular claim.
Is A Settlement Less Than A Court Judgement?
If you have heard that a settlement amount is less than what you may be awarded in court then you have heard right. What you may not have considered however is that this means a case will be dragged on for a long time, and that means a higher payment to the legal team. One of the main reasons why clients will take a settlement offer is so that they can resolve the case quickly and still receive a substantial payout for their claim. This is the reason why so many will take the settlement option.
How Will The Legal Team Get Paid?
Prior to starting with the lawyers, you will agree to the percentage which they charge for their services. This percentage will come out of your compensation before you receive it. When the money is paid into your account, this will be minus whatever the lawyers are going to take. There is no requirement for you to pay the legal team as this will have already been taken care of.
Any more questions which you have about compensation don’t hesitate to get in touch in the comments section below.
