The Basics You Should Know About Car Accident Settlements
When you're focused on pursuing car accident settlements, it's easy to get caught up in the case and forget about all the details that accompany a settlement in your favor. At Welmaker Injury Law, our team will help make sure all the details are covered. Among these, the following are just a handful of the things you should know about.
Liens are at the top of the list. In many cases, our clients have accrued significant bills as the result of their injuries. These include ambulance bills, hospital bills, rehabilitation bills, and more. These entities can place a lien on the settlement. But, they are not alone. Medicare, Medicaid, Workers' Compensation, and even child support collection agencies can stake a claim to your settlement.
Taxes are another consideration. As a general rule, car accident settlements are not taxable. However, any portion of the settlement intended to cover lost wages is considered taxable earnings by the IRS. Thus, you will want to meet with an accountant to determine the best way to account for the settlement during tax season.
Our clients' common concern is that their car accident settlements could become part of the public record. In most cases, this is not the case. That's because settlements are typically agreed upon without litigation. This means it does not become part of the public record. But, and it's a big but, insurance providers do maintain this information in-house, and they do share it with one another. This means that while it's not a public record, it could be accessed by your current and any future insurance provider.
Finally, the most common question we get about car accident settlements is, "When will I get paid?" It's definitely an important question, and the answer is typically within a few weeks after the release or settlement agreement is signed. This is a legally binding agreement, and once it's signed, the deal is done. During the two to three weeks it typically takes to process the settlement, your attorney will help you plan how to apply the funds toward any outstanding medical bills, legal bills, etc.
Do you have more questions about car accident settlements in Texas? It's our pleasure to give you the answers you need. Contact Welmaker Injury Law at (210) 828-6033 to schedule a consultation with our team.