Your Guide to Evaluating Damages, Comprehending Settlement Aspects, and Addressing Tax Obligations, Among Other Important Considerations

Essential Questions to Consider About Personal Injuries in New Jersey

A personal injury settlement is an agreement that resolves an injury claim filed by an injured person. The claim is released in exchange for some quantity of money paid by the liable party or their insurance provider to the victim. When the individual who filed the personal injury claim signs the settlement agreements to receive payment, they release the injury claim against the liable person and/or company. In New Jersey, the process of filing a personal injury claim can be complex, and defendants like insurance companies have many techniques to reduce the amount of money they pay out for their clients. As such, it is important to have a skilled personal injury attorney working on your behalf so you receive the entirety of the damages to which you are entitled.

What Damages are Typically Involved in NJ Personal Injury Cases?

Personal injury cases cover a vast number of damages. Damages commonly include medical expenses for injuries sustained, related out-of-pocket costs associated with the injury, lost wages for time taken off work to recover, damaged property costs, future lost wages, emotional pain and suffering, and wrongful death, among others.

What Factors Determine the Value of a Personal Injury Settlement?

The cumulative costs of the above factors involved in your personal injury form the proposed value of a settlement. Things like medical expenses, present and future lost wages, and pain and suffering must take into account not only the immediate costs associated with the accident but also ongoing treatment and recovery costs, as well as the economic translation of losses to future earning potential due to permanent injury. A skilled personal injury lawyer is invaluable in this regard because they will use a variety of evidence to demonstrate both the immediate and long-term costs associated with the injury, both economic and non-economic.

What Tax Obligations Arise from Personal Injury Settlements?

Generally speaking, personal injury settlements are not taxable. However, any income received on top of the settlement is. This means that interest and benefits obtained from a settlement are taxable, according to the IRS. Additionally, punitive damages received are subject to taxation.

Crucial Steps for Success when You Suffered Personal Injuries

The most important elements to receiving a positive outcome in a personal injury settlement are being able to prove liability and damages, as well as the extent of financial burden you have taken on in recovery, and having the evidence required to back it up. Also essential is knowing when to (and when not to) settle, backed up by that detailed documentation covering all aspects of your injury and recovery process. An attorney who knows just what evidence of liability, damages, and expenses to date and ongoing is required to come to a fair and robust settlement figure and can facilitate getting that information together while you focus on recovering is key.

What Determines the Timeline of a Settlement?

Achieving a Positive Settlement Agreement for Personal Injuries in NJ

Personal injury settlements vary in their timelines, depending on the complexity of the case and even the experience of one’s personal injury attorney. Most insurance companies will low-ball an original settlement proposal, and a skilled attorney will have the research and experience to facilitate a back-and-forth based on documentation and expert opinion regarding your case. This backs up knowing when to hold firm and when to recommend that you accept a settlement. Such a process to ensure you are fully compensated for the myriad elements of your injury takes time and can last between months and even more than a year.

Talk to Our Hamilton Personal Injury Lawyers for Help with Your Top Personal Injury Questions in New Jersey

There are several challenges associated with obtaining a personal injury settlement, and for this it is necessary to work with an experienced personal injury attorney. Low-balling insurers who even attempt to trick a victim into claiming liability, difficulty estimating long-term economic impacts of an injury accident, and other factors all contribute to the complexity of a personal injury settlement process. The role of a personal injury attorney is to act on your behalf to gather the necessary evidence and documentation to support your proposed settlement figure, be the point of contact for the defendant’s insurance company, and facilitate the agreement by not settling for less than you deserve.

Our team at Cohen & Riechelson has an extensive record of successfully representing victims in Burlington, Princeton, Lawrence, Hamilton, Pennington, Lambertville, and Trenton. We are devoted to making sure you receive the full financial equivalent of the economic and non-economic damages to which you are entitled. Contact us today at (609) 528-2596 for a free consultation to discuss your claim.