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A personal injury settlement provides funds to protect your health and future after an accident. However, without a post-settlement plan, you may find yourself running through your financial resources faster than expected. A personal injury lawyer with our law firm can help you create a strategy to safeguard your compensation so you do not pay out of pocket for medical treatment and other expenses.
Pitfalls to Avoid After Receiving Your Settlement
Many personal injury settlements provide compensation for current and future losses, meaning you must effectively manage your money. You need to ensure that you have resources to cover ongoing medical bills and other life expenses, especially if your injury prevents you from working. Running through your settlement can leave you facing financial hardships that may be avoided with post-settlement planning.
Start by avoiding these common pitfalls:
- Spending temptations – You likely have waited months or even years to receive your settlement, but do not let temptation rush you into spending. Purchasing luxury items can quickly deplete the resources you need for medical treatment, household services, and other essentials.
- Pressure from family and friends – Friends and family may see your settlement as you “coming into money,” when, in fact, the compensation you receive is necessary to help you heal and get your life back on track. Do not let others pressure you into lending them money or investing in their business ventures. You may never see a return, which can lead to damaged relationships and threaten your financial stability.
- Unexpected taxes and liens – Most personal injury settlements are not subject to tax. However, certain aspects of a settlement, such as punitive damages, may be subject to taxation. You may also have a medical lien on your settlement for treatment from a healthcare provider. Planning will ensure you know what portion of your settlement to set aside for taxes and liens, if any.
What Is Post-Settlement Planning?
The post-settlement planning process is a vital step in personal injury litigation. Post-settlement planning may include the following considerations:
- How to structure your settlement – Mississippi law allows for lump sum or structured settlement payments. With a lump sum, you receive the entire settlement amount at once. With structured payments, you receive funds periodically. Structured payments can protect you by guaranteeing that you continue to receive money in the future.
- Your budget – Having a grasp on your monthly budget can prevent you from spending too much, too fast. Consider taking a financial planning course to help you with money management.
- Rebuilding your credit – Lawsuits can sometimes hurt a litigant’s credit. Post-settlement planning can help you take simple steps to rebuild your credit rating.
- Estate planning – Planning for what will happen to your settlement after your death can ensure your assets pass to your intended beneficiaries.
- Investments – You may consider investing some of your settlement to grow your assets for the future.
Recoverable Personal Injury Compensation
A personal injury attorney with our law firm can help you fight for the maximum settlement possible. We can also help you with post-settlement planning. In general, if you suffered an injury in a preventable accident, we can seek compensation for:
- Current and future medical treatment, including extended nursing, attendant services, and lifecare
- Lost wages, earnings, and employment benefits from missed work
- Lost future earning capacity
- Help with household services you cannot perform due to injury, such as home maintenance, cooking, and child care
- Physical, mental, and emotional pain and suffering
Our legal team handles personal injury cases involving:
- Motor vehicle accidents
- Medical malpractice
- Product liability
- Social Security Disability
- Workers’ compensation
- Wrongful death
Contact Chatham Gilder Howell Pittman PLLC Today
Chatham Gilder Howell Pittman PLLC can guide you through every stage of your personal injury case, from investigating your accident to negotiating your claim to aiding in post-settlement planning. To learn more about how we can advocate for you, contact us online or call today for a free consultation. We serve clients in Southaven, Hernando, and across North Mississippi.
