It’s simple: the greater the settlement, the better. However, there are many intricate aspects that can affect how much money you get following your lawsuit. Several financial factors that may impact your rehabilitation are briefly described here.

If you have a personal injury claim, like for equipment failures or car accidents, it is critical that you grasp the following subjects. When choosing a law firm to represent you, consider how these elements may affect your case.


The extent of your medical treatment lost wages, and impact on your quality of life determine the potential worth of your personal injury claim. The funds to recoup these damages may be limited by insurance coverage restrictions or the culpable party’s assets.

In most cases, the at-fault driver’s insurance coverage limits the maximum compensation sum. Your uninsured/underinsured motorist coverage may apply if your damages exceed the at-fault driver’s policy limits.

In rare cases, business or government entities may be liable and have the resources to compensate you.


Attorney fees cover the time, experience, and overhead of your legal team. Hard costs incurred by the law firm in your case may potentially be taken from your recovery.

  • filing, jury, court reporter fees
  • Transcripts, photocopies, faxes
  • Parking, mileage, courier
  • Experts, consultants
  • ADR private mediators
  • fees for investigators, etc.

Typically, upfront costs are removed from your gross recovery after attorneys’ fees, although this depends on your fee agreement.


A lien is a debt claim. To get your settlement monies, most personal injury cases entail medical liens and/or reimbursements.

Depending on the situation, the state and federal governments, health insurance companies, hospitals, and other medical providers may claim a lien or reimbursement against your compensation. Here are a few examples:

Medical Provider – A doctor treats your injuries but does not charge you. Your bill is paid from your settlement instead of granting a lien.

The majority of health insurance contracts stipulate that they will be compensated by a third party. If your insurance covers for your accident-related injuries and you later receive a settlement, the insurance company expects to be reimbursed.

Medicare or Medi-Cal anticipate being reimbursed from the settlement money you get for treatment.

Workers’ Compensation Insurance – If you are injured at work by a third party, your treatment may be covered by Workers’ Compensation. If you receive a settlement from a person other than your employer, you may be required to reimburse Workers’ Compensation.

ERISA is federal legislation that oversees most employee health plans and involves a particularly complex sort of lien. ERISA health plan contracts often contain legal terms that prioritize lien claims regardless of the case situation.


A structured settlement for damages means you get paid in installments rather than a flat sum. Generally, personal injury claims are paid all at once, but depending on the situation, this payment arrangement may be presented to you or the defendant.


Compensation for damages (physical injuries) is not taxable, but punitive damages and interest are. This amount of your settlement may now be taxed, which should be factored into your case decisions. Your personal injury lawyer cannot provide tax advice, therefore seek advice from a trained tax advisor.

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