What Happens After I Accept a Settlement Offer?

Agreeing to a settlement offer in a personal injury claim can bring a sense of relief, but it also comes with important legal considerations and consequences. What happens after I accept a settlement offer? Once you accept the offer, you typically release the other party from further liability related to your claim, meaning you cannot pursue additional compensation for the same incident.

A St. Louis personal injury lawyer from Burger Law can professionally evaluate the document to ensure it reflects the terms of the agreement and protects your rights. After signing the settlement agreement, the parties usually distribute the agreed-upon funds. Your attorney can help you make sense of your situation and address any concerns you may have.

The Settlement Release Form

Once you agree to an offer, you must sign a settlement release form. This document is a legally binding agreement between you and the party responsible for your injury, often managed by their insurance company.

By signing the release form, you agree to relinquish any further claims related to your injury in exchange for the agreed-upon settlement amount. You need to read this form carefully and understand its terms before signing. Your personal injury attorney will review the document, ensure you fully understand what you are agreeing to, and protect your rights.

How Long Will It Take To Get the Settlement Compensation Check?

After signing the settlement release form, you expect to receive your settlement compensation check soon. Generally, the insurance company will process the payment once the form is signed and returned. This can take a few weeks or a couple of months.

However, several factors may influence this timeline, including the insurance company’s efficiency, internal processing delays and whether any liens on the settlement need to be resolved first. These may include the following:

• Unpaid child support
• Legal costs
• Outstanding medical debt

In case there are unjustifiable delays, your attorney can expedite the issue so that you receive a timely settlement check.

Will My Settlement Be Taxed?

One of the important things to understand after accepting a settlement offer is the tax implications of your payout. Generally, personal injury settlement payouts are not subject to taxes by the IRS if they compensate for physical injuries or sickness.

However, there are exceptions to taxation. For instance, if your claim involves a tax deduction for medical costs related to the injury in previous years, you might need to pay taxes on that portion of the settlement.

Additionally, any interest earned on the settlement amount is taxable. It’s highly advisable to discuss this with a tax professional or lawyer to fully understand your situation and ensure compliance with tax regulations.

Call a St. Louis Personal Injury Attorney at Burger Law Today

Sometimes, there could be confusion about what happens after accepting a settlement offer. At this stage, you want the settlement paid promptly so you can manage, invest the funds, or pay any liens. This requires professional handling to ensure no legal issue arises after that.

At Burger Law, our lawyers have the experience and insight to guide your case to its conclusion. Contact us today to schedule your free consultation, and we can discuss the next steps after the settlement offer.