How Much of a $25,000 Settlement Will I Get in Georgia?

If a settlement offer says $25,000, you should not expect to keep all of it. That number is the gross amount. Several costs can come out before any money reaches you.

So, how much of a $25,000 settlement will I get? After attorney fees, case costs, and medical bills or liens are handled, the amount you receive can be much smaller than the offer. The final number depends on the facts of your claim. This guide explains each deduction, walks through a labeled example, and lists the questions to ask before you accept any offer. T. Madden & Associates, P.C. has been in practice since 1999.

Why $25,000 Is Not the Amount You Take Home

A settlement is the gross amount agreed to or paid before anything is subtracted. The number on the offer is a starting point, not the check you cash.

Three things separate the two. First, the attorney fee and case costs come out under the fee agreement. Second, medical bills and liens may need to be paid or resolved. Third, some reimbursement claims must be identified before money is released.

General damages are presumed to flow from a wrongful act and need no proof of amount. Special damages actually flow from the act and must be proved (Georgia damages law, § 51-12-2). Medical expenses are treated as special damages (medical expense rules, § 51-12-1.1). That is why your records and bills matter so much. The same steps apply to car, truck, and motorcycle claims.

What Comes Out of a Settlement

Four kinds of deductions usually come out of a settlement: the attorney fee, case costs, medical bills and liens, and reimbursement claims.

The attorney fee. T. Madden & Associates, P.C. works on a no-fee-unless-we-win basis. You may still be responsible for court costs and case expenses, so ask how those are handled before you sign anything.

Case costs. Records, medical reports, and filing fees are common examples. Your fee agreement sets out which costs are deducted and how.

Medical bills and liens. Some providers treat patients under a letter of protection, which is a promise to be paid from a settlement or judgment. Georgia law makes these arrangements open to review (§ 51-12-1.1).

Reimbursement claims. Medicare may make conditional payments for accident-related care.

A Worked Example With Hypothetical Numbers

How much of a $25,000 settlement will I get? The table below shows one way to work it out. These are made-up numbers. They are not this firm’s fee and not a real case.

Change one input and the net changes. A lower fee, smaller bills, or a smaller lien would each raise the amount you keep. A higher one would lower it. Use this table to learn the steps, not to predict your result. Ask for your own version with your real numbers.

Why Medical Bills and Liens Can Change the Math

Medical bills and liens often reduce the net more than any other item. Review them first. A lien is a claim on money from a case, so it can be paid before you receive your share.

Georgia law focuses on the reasonable value of medically necessary care (§ 51-12-1.1). If you have any form of public or private health insurance, including benefits under a governmental workers’ compensation program, evidence can include both the amounts charged and the amounts actually needed to satisfy those charges under the insurance contract or the applicable governmental workers’ compensation program. This applies even if the insurance was not used.

For letter-of-protection treatment or any other arrangement by which a healthcare provider renders treatment in exchange for a promise of payment from a judgment or settlement, the charges must be itemized and, to the extent applicable, coded according to generally accepted medical billing practices. The law also makes relevant any sale of the provider’s receivables below invoice price (§ 51-12-1.1(d)). Gather every itemized bill, insurance statement, and payment record before you compare offers.

Factors That Shape the Value of an Offer

The value of an offer usually follows how well your losses are documented. These are the areas that carry the most weight.

• Injury and treatment. Severity and length of treatment, backed by medical records.
• Lost pay. Pay records and documented time missed from work.
• Future costs. Georgia lets the fact finder reduce future medical expenses and economic losses to present value, using a 5 percent discount rate or another rate it chooses (§ 51-12-13).
• Fault. The fact finder sets your percentage of fault, and damages are reduced by that share (§ 51-12-33). If you are 50 percent or more responsible, you cannot receive damages.
• Avoidance. If the plaintiff by ordinary care could have avoided the consequences to himself caused by the defendant’s negligence, he is not entitled to recover. In other cases the defendant is not relieved, although the plaintiff may in some way have contributed to the injury sustained (§ 51-11-7).
• Insurance limits. A payer can only pay up to its policy limits, so the coverage behind a claim matters.

Documents That Support Your Claim’s Value

The records you gather early show what happened and what it cost you. Start with the crash report, which is a key record of how the collision happened and who was involved.

Keep photos, witness names and contact details, and any traffic tickets. For medical proof, save emergency room records, follow-up notes, prescriptions, and bills. For lost pay, keep pay stubs and a letter from your employer about missed shifts.

Write down each appointment, each missed workday, and each daily task you can no longer do. Do it while the details are fresh. Keep every letter and voicemail from insurers, too.

Questions to Ask Before You Accept Any Offer

Before you accept any offer, ask for a written breakdown of the gross amount, fees, costs, liens, and the net to you. Georgia’s insurance regulator says claimants should not rush to accept an offer and may negotiate for a fair settlement (OCI claim tips).

Ask these questions:

• Can you show the gross, fee, costs, liens, and net in writing?
• Which liens or reimbursement claims exist, and how will each be resolved before money is paid?
• What does the release cover? Read any release carefully before you sign it.
• Is the fee agreement in writing, and does it explain court costs and case expenses?

If an insurer mishandles your claim, you can file a complaint.

Frequently Asked Questions

This page is general information, not legal advice. Responsible lawyer: Terance Madden, T. Madden & Associates, P.C., with offices in Jonesboro, Atlanta, Decatur, Macon and Augusta. Contact: tmaddenlaw.com/contact.