Lawyers get paid before medical bills when it comes to most personal injury cases. If you’re in the middle of pursuing compensation for an injury, you’re probably wondering how money is divided once a settlement finally comes through. Between attorney fees, medical bills, and everyday expenses, it can be difficult to figure out who gets paid first.
While it’s true that your attorney will get paid before your medical bills are covered, the process involves several important steps. Working with a personal injury pre-settlement funding team to find out how settlement funds are distributed can help you plan ahead, avoid surprises, and make informed decisions about your next steps after an accident.
How Settlement Funds are Distributed
If you’re unsure whether lawyers get paid before medical bills, it can be helpful to learn more about how settlement funds are distributed.
When an insurance claim or injury lawsuit concludes successfully, the defendant, or their insurer, issues a settlement check. That payment is sent to your attorney’s office, not directly to you.
From there, your lawyer deposits the funds into a client trust account, which is a special account that holds settlement proceeds until all expenses are paid out. Here’s how the process usually works:
- Attorney fees and case costs are deducted first
- Medical providers and liens are paid
- You receive the remainder of the settlement
This order of events ensures that all financial obligations tied to the case, like your attorney’s contingency fee, are properly handled before you receive your funds. It also protects your credit and legal standing, as unpaid medical bills can lead to collections.
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Why Lawyers Get Paid Before Medical Bills
It might seem unfair that your lawyer gets paid before your medical bills, but there’s a practical reason behind it. Attorneys who take on personal injury cases on contingency often cover upfront costs and invest a significant amount of time without a guarantee of payment.
Getting paid first allows them to recover those expenses and continue helping other clients who need representation but can’t afford expensive hourly legal fees. Additionally, attorneys are bound by rules that require them to manage client settlement funds carefully and distribute payments according to legal priorities.
A trusted personal injury pre-settlement funding team can explain how this process works and help you access financial support while you wait for your compensation..
What Happens to Your Medical Bills After Settlement?
Once your personal injury case reaches a resolution, your lawyer may negotiate your medical bills before payment is made. This important step can make a big difference in how much money you ultimately receive. For example, if your hospital placed a lien on your settlement for $15,000, your lawyer might try to negotiate it down to $10,000.
The remaining $5,000 goes straight to your pocket, thus increasing your take-home amount. Attorneys frequently work with healthcare providers to reach fair reductions, especially when medical costs exceed your settlement amount.
Dealing with medical bills after a serious accident can be frustrating and complicated. Fortunately, a personal injury pre-settlement funding team can explain why lawyers get paid before medical bills and work hard to get the resources you need to get adequate medical care in a timely manner.
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Where Legal Funding Fits In
While the legal process unfolds, it’s common for injury victims to struggle financially. You may be out of work, facing costly medical bills, or dealing with rent and other everyday expenses. That’s where legal funding, also known as a non–recourse cash advance, can help.
Unlike traditional loans, legal funding doesn’t require monthly payments, credit checks, or even a social security number. When you seek legal funding, your case is your collateral, and repayment only happens if your case results in a settlement.
If you lose your case, you owe nothing back. Funding can cover any of the following expenses:
- Medical treatment or physical rehabilitation
- Rent, mortgage, or utility payments
- Cost of transportation to medical appointments
- Childcare costs
- Everyday living expenses, including groceries
Contact a pre-settlement funding partner today to get the money you need to cover accident-related costs and other expenses while awaiting your settlement. Your funding team will advise you on how legal funding works, explain why lawyers get paid before medical bills, and work tirelessly to ensure you get the resources you need during this difficult time.
Your pre-settlement funding consultation is free — contact us today!
Get the Pre-Settlement Funding You Need to Support Your Recovery
While it’s true that lawyers get paid before your medical bills, you don’t have to wait to be able to cover losses and every expense with the help of a pre-settlement funding team. Pegasus Legal Capital can help provide the financial relief you need, allowing you to focus on your recovery.
Since 2007, we’ve provided over $500 million in funding and served more than 15,000 clients like yourself. Pegasus Legal Capital has earned our reputation as a trusted legal funding partner by helping clients remain financially secure throughout their cases.
Contact us today to schedule a free consultation and learn more about the helpful services we offer.
Your pre-settlement funding consultation is free — contact us today!