How Are Personal Injury Settlements Paid Out?
Once you and the party responsible for your injuries (or the party’s insurance company) have agreed on the amount of compensation, you both will execute a settlement and release agreement. The compensation amount will often be held in escrow by a neutral third-party. The funds will be released once the settlement agreement is executed and legally binding.
In many personal injury cases, the settlement funds are paid to your attorney. If you have a contingency fee agreement with your attorney, he or she will deduct any fees and costs and then pay the remaining amount to you.