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Posted on February 11, 2023 in Negotiating a Portland personal injury settlement for, say, a truck accident or a wrongful death, is tricky business. The opposing party might be able to reduce your settlement based on comparative fault, the uncertainty of the results should your case go to trial or other factors.
Once you negotiate a specific amount, however, you face another uncertainty—the amount that you put in your pocket relative to the full amount of the check. This blog post will explain the details.
The Disbursement Process
The opposing party (typically an insurance company, not the defendant) will transfer the money to your lawyer’s client trust account. Your lawyer will then deduct any applicable amounts and pay any outstanding debts. They will then forward the rest of the money to you, typically by bank-to-bank transfer. Your lawyer should provide you with a written list of deductions.
Common Deductions
Following is a description of common deductions that will reduce the amount of your settlement payout.
Legal Fees
When you signed the fee agreement with your attorney, it probably contained a contingency fee arrangement. The system works like this: if your lawyer negotiates a settlement, they get a certain percentage of your award (usually about a third). If you lose, however, you owe your lawyer nothing in terms of attorney’s fees.
Your lawyer’s contingency fee comes out of your settlement before you ever see it. It sounds like a lot, but once you consider that injury victims who hire attorneys typically take home several times the amount that unrepresented victims do, it is usually worth it.
It’s also worth it for your lawyer only if they are reasonably certain they can win your case. That means if the lawyer takes your case on a contingency fee arrangement, they are probably confident they can win.
Case Expenses
Most of the time, a personal injury lawyer will pay your case expenses out of their own pocket. This way, you can afford to hire a lawyer for a personal injury claim even if you’re dead broke. If you lose the case, your fee agreement probably specifies that it is your lawyer who must swallow the loss, not you.
This type of arrangement gives your lawyer plenty of motivation to win your case. If you win your case, you have to reimburse your lawyer for any out-of-pocket case expenses. Typical case expenses include:
- Expert witness fees;
- Court costs (filing fees, etc.);
- Investigation expenses;
- Medical records; and
- Postage.
Your lawyer might deduct many other items, depending on the specific facts surrounding your case.
Outstanding Medical Liens
Medical treatment is expensive. If your injuries were serious or extensive, you may or may not be able to pay them as they come due. If not, you might have arranged for your healthcare provider or your insurance company to take a lien on the amount of any personal injury settlement you manage to negotiate.
Arranging a medical lien can be a good idea because it can ensure that you receive adequate medical treatment. If you do settle your case, you will need to settle any relevant liens as well.
Federal Taxes
Most of the time, a personal injury settlement is tax-free because the IRS does not consider compensatory damages to be earned income. The following settlement components are taxable, however:
- Punitive damages: In most cases, this item doesn’t matter because few personal injury claimants win punitive damages anyway.
- Interest: Interest on any settlement is taxable.
- Emotional distress and mental anguish: Emotional distress and mental anguish are taxable only if they do NOT arise from a physical injury. This doesn’t apply to most personal injury settlements, but it could apply to damages for a claim such as intentional infliction of emotional distress.
Consult a tax professional, not a personal injury attorney, if you have any doubts.
An Attorney Is Definitely Worth Hiring if You Have a Significant Personal Injury Claim
Your attorney only makes money if you do. Consequently, they will probably strive to obtain the largest possible settlement for you. Take advantage of the fact that most personal injury attorneys offer free initial case consultations.
If you were injured in an accident in Portland, OR, please contact our Portland personal injury lawyers at Tillmann Law Personal Injury Lawyers to schedule a free consultation today.
We proudly serve all throughout Multnomah County in Oregon. Visit our office at:
Tillmann Law Personal Injury Lawyers
101 SW Main St. #1905
Portland, OR, 97204
(503) 773-3333
Hours: Open 24/7
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Frequently Asked Questions
Do I need a personal injury lawyer for a car accident in Portland?
If you have been involved in a car accident in Portland, it is highly recommended to consult a personal injury lawyer to ensure your rights are protected and you receive the compensation you deserve for your injuries.
How do I choose a reliable personal injury attorney in Portland?
Choosing a reliable personal injury attorney in Portland involves considering their experience, success record, and client testimonials to ensure they have the expertise to effectively represent your case and secure fair compensation.
Can a personal injury attorney in Portland help with lost wages?
A personal injury attorney in Portland can help recover lost wages from missed work due to an accident or injury. They can negotiate with insurance companies to ensure fair compensation for lost income.
Can a Portland personal injury attorney help with medical bills?
A Portland personal injury attorney can help with medical bills by negotiating with insurance companies and healthcare providers to get your medical expenses covered as part of your personal injury claim settlement.
What are the benefits of hiring a personal injury lawyer in Portland?
Hiring a personal injury lawyer in Portland can provide benefits such as navigating the legal system, maximizing compensation, and ensuring your rights are protected after an accident.
How to find the best personal injury attorney in Portland?
Finding the best personal injury attorney in Portland involves researching their experience, success rate, and client reviews to ensure they have the expertise to handle your case effectively and secure the compensation you deserve.
How does a Portland personal injury attorney prove negligence?
To prove negligence, a Portland personal injury attorney must demonstrate that the defendant failed to exercise reasonable care, their actions directly caused the plaintiff's injuries, and the plaintiff suffered quantifiable damages.
How do I find a reliable personal injury lawyer in Portland?
Finding a reliable personal injury lawyer in Portland involves researching local firms, reading client reviews, and consulting with lawyers to assess their experience and success in recovering compensation for personal injury cases.
How does a personal injury attorney in Portland handle insurance companies?
Personal injury attorneys in Portland negotiate with insurance companies to secure fair compensation for their clients' injuries, medical expenses, and other damages by leveraging their legal expertise and negotiation skills.
What are the common cases handled by Portland personal injury attorneys?
The common cases handled by Portland personal injury attorneys include car accidents, motorcycle accidents, pedestrian accidents, slip and fall incidents, medical malpractice, and workplace injuries, providing legal representation to help clients recover compensation for their injuries.
How do I choose the best personal injury lawyer in Portland?
Choosing the best personal injury lawyer in Portland involves considering their experience, success rate, communication skills, and accessibility to ensure you receive the highest level of legal representation for your case.
Can a personal injury lawyer help with lost wages in Portland?
A personal injury lawyer in Portland can help recover lost wages from an accident, including past and future lost income, to ensure fair compensation for the victim.
What is the process of filing a personal injury claim in Portland?
The process of filing a personal injury claim in Portland typically involves gathering evidence, filing a claim with the at-fault party's insurance company, and potentially pursuing legal action if a fair settlement cannot be reached.
What is the role of a personal injury lawyer in Portland?
The role of a personal injury lawyer in Portland is to provide legal representation and assistance to victims of accidents, helping them secure fair compensation for their injuries and losses.
Can a personal injury lawyer help with pain and suffering in Portland?
A personal injury lawyer in Portland can help recover compensation for pain and suffering experienced due to an accident or injury, including medical expenses, lost wages, and other damages.
How long does a personal injury case take in Portland?
The duration of a personal injury case in Portland can vary depending on the complexity of the case and the extent of the injuries. On average, personal injury cases in Portland can take anywhere from 6 months to 2 years to resolve.
What is the average settlement for personal injury cases in Portland?
The average settlement for personal injury cases in Portland can vary widely depending on the severity of the injury, medical expenses, lost wages, and other factors. Settlement amounts typically range from tens of thousands to millions of dollars.
What is the average settlement in a Portland personal injury case?
The average settlement in a Portland personal injury case can vary widely depending on the severity of the injuries, liability, and other factors, but typically ranges from tens of thousands to millions of dollars.
Can a personal injury lawyer help with medical bills in Portland?
A personal injury lawyer in Portland can help with medical bills by negotiating with insurance companies and recovering compensation to cover medical expenses related to the injury.
What are the qualifications of a personal injury attorney in Portland?
The qualifications of a personal injury attorney in Portland typically include extensive experience handling a wide range of personal injury cases, in-depth knowledge of local laws, and a proven track record of securing fair compensation for injured clients.
What is the statute of limitations in Portland personal injury cases?
The statute of limitations for personal injury cases in Portland, Oregon is generally two years from the date of the incident.
How much does a personal injury attorney in Portland cost?
The cost of a personal injury attorney in Portland can vary, typically ranging from a contingency fee of 33-40% of the settlement or award amount recovered on the client's behalf.
How much does a personal injury lawyer cost in Portland?
The cost of a personal injury lawyer in Portland can vary, typically ranging from 33-40% of the client's final settlement or award, plus additional expenses. The specific fees are determined based on the complexity of the case and the services required.
What is the role of a personal injury attorney in Portland?
The role of a personal injury attorney in Portland is to provide legal representation and assistance to victims of accidents, helping them secure fair compensation for their injuries and losses.
How does a personal injury lawyer get paid in Portland?
Personal injury lawyers in Portland typically work on a contingency fee basis, where they only get paid if they successfully recover compensation for their client's injuries.
Do personal injury attorneys in Portland offer free consultations?
Personal injury attorneys in Portland often offer free consultations to evaluate your case and provide guidance on the legal process.
What are common personal injury cases in Portland?
Common personal injury cases in Portland include car accidents, slip and fall incidents, premises liability, dog bites, and medical malpractice, where victims may seek compensation for their injuries and damages.
What are the most common causes of personal injury in Portland?
The most common causes of personal injury in Portland include motor vehicle accidents, slip and fall incidents, workplace accidents, and pedestrian/bicycle collisions.
What are the benefits of hiring a Portland personal injury attorney?
Hiring a Portland personal injury attorney can provide crucial benefits, such as navigating the legal process, negotiating with insurance companies, and maximizing the compensation for your injuries and losses.
What should I expect during my consultation?
During your consultation, you can expect a thorough review of your personal injury case, an assessment of your legal options, and a discussion on how Tillmann Law can assist in securing the compensation you deserve.
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