How Much of a 50K Settlement Will I Get?

Have you been offered a $50,000 settlement? That is great!
Maybe you have already started thinking about how you are going to spend the money or how much you will have for Debt Relief. Before you indulge any further, though, you need to know something – you cannot walk away with the entire sum.

Does this surprise you? You are probably asking yourself right now – “How much of a 50K settlement will I get?”
Well, we are here to clarify the situation and help you find the answer to your question. There are a few common deductions that come out first, and that is perfectly normal. Even then, it helps to understand everything that goes on behind the scenes.

How Much of a $50,000 Settlement Will I Get?

If you are going to receive a personal injury settlement of $50,000, you can expect to take home anywhere between $20,000 and $30,000 after all the deductions.

The exact amount you will get depends on the fee charged by your personal injury lawyer Orange County, how much your case costs to build, and what kind of medical bills or liens need to be paid out of the settlement.
Here’s a quick example to help you get an idea of what it might look like.

• Attorney Fee (33.3%) – $16,650
• Case Costs – $1,500
• Medical Bills – $10,000
• Take-Home Amount – $21,850

As you can see in this particular case, you would end up with just under $22,000 once everything is paid.
This is not entirely bad, right? In fact, your final amount might be a bit higher if your attorney manages to negotiate the medical bills down, which they generally do.

Deductions From Your $50K Settlement: The Particulars

Let’s take you through all the expenses individually that are deducted from your settlement in detail.

1. Lawyer’s Fees

This is probably your biggest expense.
Most lawyers specializing in personal injury cases work on something called a contingency fee. It means you have to pay only if your lawyer manages to win the case. The standard rate is 33.3%, or one-third of your settlement if the case settles before trial.

Settling for $50,000 means your lawyer would get a cut of about $16,650.
If, however, your case goes further, such as into a lawsuit or trial, the fee might go up, usually to 40% or more.
Then again, most cases settle before trial. That is why the one-third number is pretty common.
It might sound like a massive chunk, but you should remember this: your attorney did all the heavy lifting to get that money in the first place.

2. Costs Related to the Case

This part is a little less obvious, but it is important. For as long as your case lasts, your attorney will probably have to spend money to keep the process ongoing.
This could mean paying for the following.

• Medical records
• Court filing fees
• Expert witnesses
• Postage
• Accident reconstruction

These little charges add up eventually. They are usually paid upfront by your attorney and then reimbursed from your settlement once the case is over. The cost varies significantly, but in a simple case, it can be somewhere between $500 and $2,000 in total case-related expenses.

No one likes to see so much money walking out the door, but if you avoid these steps, you cannot expect to go this far.

3. Medical Liens and Bills

Medical bills can occupy a big part of a settlement.
If you receive treatment after your accident, such as ambulance rides, ER visits, physical therapy, etc., those bills may still stick around. Alternatively, your health insurance can cover things, but demand reimbursement later.
Medical liens usually come from the following.

• Hospitals and doctors
• Medicaid or Medicare (if they pay your bills upfront)
• Insurance companies

There are times when these can be negotiated down, but you still need to pay.
Let’s assume you owe $10,000 in medical bills. So, that gets pulled out next.

4. Outstanding Debts or Child Support (If Applicable)

It is not for everyone, but if it applies to you, know that it is a big deal.

If you owe back child support or have a debt to settle with the government, some states require that money be taken from your settlement before you even get to see a dime.

It is not your attorney’s choice. It has nothing to do with personal injury law. They do not want your money going somewhere else, either. They just have to follow the rules.

Fortunately, your attorney will inform you upfront if this is going to come up. At least, it will not hit you out of the blue.

Can You Negotiate Costs or Retain More?

Yes, it is possible. There are a few places where you might be able to save a little bit.

Of course, you cannot haggle your way out of paying the lawyer’s fee. After all, you signed a contract. What you CAN do is work with your attorney to negotiate things like medical liens.

The best lawyers from A1 Accident Lawyer will go above and beyond to try to reduce what you owe to insurance companies or hospitals.

Additionally, some firms will waive certain smaller costs to help you hold on to as much of the settlement as possible. This does not happen every time, but it does happen, particularly in straightforward cases where things do not drag out.

When you see your lawyer, ask all these questions instead of just accepting a “final” number without understanding how it got there. Clients are allowed to see an itemized breakdown. You are also allowed to ask if anything can be lowered.

Just asking questions can make all the difference.

Endnote

Well, there you have it. A complete breakdown of how much of a 50K settlement you can expect to get.
It is a big win, but by the time lawyer’s fees, court costs, medical bills, and other debts are settled from the settlement, you might end up with an amount between $20,000 and $30,000, based on your situation.
It is still a worthy chunk of change, and it is much better than nothing.

Conversely, it is smart to know beforehand that you are not going to get all the money.
Once the dust settles and the numbers play out, what you have left is yours, and it is tax-free in most injury cases. Just make sure that you use it wisely. Pay off debts, save a bit, and treat yourself a little.

Also Read: How Much of a 25K Settlement Will I Get?

FAQs