The majority of lawsuits are settled through negotiation, without ever actually going to court. These settlements are typically negotiated between the attorneys for the insurance company and the injured party’s attorney, while the injured party decides whether or not to accept a settlement. A settlement typically pays out money in exchange for dismissing your claim. One can never know for sure if a lawsuit you bring will be settled, though it is likely.
It is very hard to predict just how long a case will drag on prior to the actual settlement, because there are several factors. In general, in less sever injury matters, the cases are resolved in around one year. In more serious and complex injury cases, it may take a few years to settle.
In order to determine if settlement amounts are included as taxable income, it is best to consult with an attorney. Generally speaking, compensation for personal injury, physical sickness, lost wages, or lost profits whereby the payments are for wages lost as a result of physical injury are not taxed. Emotional distress amounts are typically included in taxable income, except to the extent that they are paid for medical care that is attributed to emotional distress. Punitive damages are actually taxable, even if they relate to a physical injury or sickness.
If you have been injured due to the abuse or negligence of another party, contact us today by filling out the form to the right of the screen. Our team of experienced legal professionals will be able to advise you every step of the way towards recovery and compensation. Contact the attorneys at the Rasansky Law Firm today!