What is a personal injury settlement?

A settlement is the agreed amount paid by the at-fault party or their insurer to resolve your claim without trial. The goal is to make you whole for medical bills, lost income, and the human impact of your injuries.

How your settlement is paid and distributed

When a case resolves, the insurer typically issues payment to our client trust account. From there, funds are distributed in this order:

  1. Repay verified medical liens and any outstanding medical bills.
  2. Deduct case costs we fronted to build your claim, such as records, filing, and expert expenses.
  3. Apply the contingency fee from the final recovery.
  4. Disburse the remainder to you as your net recovery.

Why this order matters: Clearing medical balances and liens first protects you from later collections and ensures your release is truly final. Negotiating those balances is one of the most valuable things your legal team does.

What percentage does the lawyer take?

Most personal injury cases are handled on a contingency fee, meaning you do not pay fees unless we recover money for you. Typical contingency percentages are roughly one-third to a little under one-half, depending on case stage and complexity.

You owe no fee unless we win or settle your case.

Common deductions explained

Medical liens and bills
Hospitals, doctors, health plans, and MedPay can assert reimbursement rights. We verify each claim, challenge improper charges, and negotiate reductions so more of the settlement stays with you.

Case costs
These are out-of-pocket expenses to prove your case: records, postage, filing, process servers, expert review, depositions, and exhibits. They are separate from the contingency fee and are reimbursed from the settlement.

Attorneyā€™s contingency fee
Calculated on the gross recovery after the settlement funds arrive, per your fee agreement. Typical ranges are outlined above.

Example settlement breakdowns

Scenario A: Non-litigated case

  • Gross settlement: $100,000
  • Case costs: $1,750
  • Medical liens/bills: $12,500
  • Contingency fee example at 33 percent: $33,000
  • Estimated net to client: $52,750

Scenario B: Complex case

  • Gross settlement: $275,000
  • Case costs: $8,900
  • Medical liens/bills: $46,000
  • Contingency fee example at 40 percent: $110,000
  • Estimated net to client: $110,100

Numbers above are illustrations. Your actual distribution will match your fee agreement, real costs, and negotiated lien results.

What affects ā€œhow much goes in my pocketā€

  • Total medical treatment and whether we can reduce balances
  • Insurance limits and available defendants
  • Strength of liability and evidence
  • Permanent injury, lost earning capacity, and future care needs
  • Litigation stage and expert work required

Will I owe taxes on my settlement?

As a general rule, compensation for physical injury is not taxable for federal income tax purposes. Portions for lost wages or interest can be treated differently. Always consult your tax professional for your specific situation.

Our process to maximize your net

  1. Early strategy: Identify all coverage, preserve evidence, and map medical care needs.
  2. Damages proof: Build a complete story with records, providers, and experts as needed.
  3. Negotiation: Push the insurer on liability and damages, and time demands strategically.
  4. Lien reductions: Scrutinize charges, challenge errors, and negotiate down balances.
  5. Transparent disbursement: We deliver a written settlement statement showing every line item.

FAQs

When do I get my check?
After settlement funds clear the trust account, lien verifications and payoff letters are finalized, and the distribution statement is signed. We move this along quickly and keep you updated.

Can you reduce my medical balances?
Often yes. Provider contracts, coding errors, and equitable reduction arguments can create room to negotiate. Results vary, but reductions directly increase your net.

Do I pay anything up front?
No. We advance case costs and collect our fee only if we recover for you.

Free case review

If you have questions about what your net would look like, contact Hillstone Law for a free, no-obligation consultation. We will review your medicals, insurance limits, and potential liens and give you a clear estimate of your likely take-home.

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