The goal of filing a personal injury claim in Nevada is “to be made whole again,” but what does that really mean? Understanding exactly what a personal injury settlement is used for can help you plan for the future. You may need help from a Las Vegas personal injury lawyer to structure your settlement and determine how best to use your funds after holding someone accountable for your injuries and losses.
Pay Off Medical Debts
One of the first debts that must be paid with a personal injury settlement is any outstanding medical bills. Accident injuries can place you in the hospital and lead to hundreds of thousands of dollars in medical expenses throughout your lifetime. Even a “minor” injury can cost thousands in treatments and care. If a hospital or health care provider has placed a medical lien on your assets for care you received but have not yet paid for, it is important to pay this off first. You should also use your settlement to pay off any other high-interest debts. If you work with an attorney, the law firm can often talk down the value of a lien to save you money.
Replace Lost Wages
If an accident takes you out of work, part of your settlement should be allocated to reimbursing you for these lost wages and missed earning opportunities. Use this part of your settlement as you would your normal income, such as to pay for bills and daily expenses.
Fix Damaged Property
Any property damage or destruction you suffered in the accident can be repaired or replaced with a personal injury settlement. In a car accident claim, for example, you should have received the full pre-crash value of your vehicle if it was totaled in the crash, or enough to pay for repairs. You can use this portion of your settlement to fix your car or purchase a comparable car and get back on the road.
Compensate for Pain and Suffering
In addition to economic damages to directly reimburse you for the monetary losses you suffered in an accident, you may also be eligible for pain and suffering damages. This non-economic award can provide you with additional compensation to do with what you wish. Rather than having to use this money to pay off any outstanding debts, you and your family can keep it to invest in your future. The same goes for punitive damages, which are rare but sometimes awarded to punish a defendant for gross negligence.
Plan for the Future
If your accident resulted in catastrophic, long-term or lifelong injuries or disability, it is critical to plan your settlement in a way that takes care of your future needs. This may include future lost capacity to earn, necessary medical care, long-term care and support, retirement savings, and an emergency fund. A structured settlement is an option you can choose that will pay you in increments over time rather than a single lump sum. This may be a good choice if you have a lot of foreseeable future needs connected to an incapacitating injury, or if the victim is a minor.
Who Has a Claim to Your Personal Injury Settlement?
When you first receive a personal injury settlement, you may be obligated to use it to pay certain debts that you owe to other parties. This can include medical bills, attorney’s fees, legal fees and court costs, and federal taxes. You can keep the remaining amount to make plans for your future with greater peace of mind. Contact a personal injury attorney to keep more of your settlement. A lawyer can organize your settlement in a way that benefits you now and for years to come.