What You Need to Know About “New Money”

One thing that was quite confusing to me personally was why everybody (lawyer and insurance company) kept on saying this word “New Money”. And even when our lawyer explained what this concept, it took a little while to figure out what it really meant.

Basically ‘New Money” means that the offered amount is what you will get. If a settlement offer is made of $20,000 you will get $20,000 from the opposing side. However, you still have to deduct from this amount your lawyer fees and expenses. So, the insurance company is saying I will not ask for the cost of medical bills or any other expenses they have already paid. Basically, if they have paid $5,000 of medical you will not get only $15,000 ($20,000-$5,000) like you would if you went to trial and received a court decision.

SO BE AWARE: IF YOU GO TO COURT YOU DO NOT GET “NEW MONEY.”

But honestly I think this terminology is just another tactic to confuse the honest, innocent, common people.

Tactics Your Lawyer May Use To Get You to Settle

Remember that lawyers much prefer out of court settlements because this goes as a win on their record as opposed to rolling the dice and possibly having a loss in court.

 They may scare you will possible future fees of court, depositions, mediation, travel expenses etc, etc so that you will take the settlement. This is true especially if your lawyer knows your financial situation.

 If your lawyer is aware of financial struggles, they may attempt to use a settlement offer as an incentive for you to be able to pay your expensive and incurred medical bills so that you are not turned over to collectors and therefore having much greater expenses.

 Your lawyer may try to tell you that your case is not worth more than the settlement amount and you should quickly take the first offer. Remember, the quicker you take the offer, the quicker the lawyer gets paid and can move to their next victim.

 Time is money for a lawyer and they will most definitely attempt to convince you that if you do not take an out-of-court settlement then your case could possible draw out for years.

 After further review of your case and closer examination of your doctors’ reports it is their opinion that the opposing counseling has a better argument for a jury, so you should take the settlement offer.

 If your lawyer tells you they will go pro bono just to get you to settle, this is a big red flag that something is not right. Lawyers just don’t give up the opportunity to get paid.

 And if your lawyer says they are going to quite on you if you don’t settle this is an even bigger red flag and grounds for disbarment.

 Again your lawyer may use another type of scare tactic that there is a Statue of Limitations coming up and we will need to settle. Of course this is not true, but if you are not aware of the law, then you are overly trusting of your lawyer.

 They pay play the trust card in which they say I’m doing what’s in your best interest and just trust me because I have done this for “x” amount of years. So I’m telling you to settle.

 Or they may use their excessive knowledge and experience to point out that you don’t know what you are talking about and should take their advice. In a polite way, they are calling you an idiot.

If you feel that your lawyer is working against you and constantly trying to get you to settle, there is probably a reason. Perhaps they are incompetent and need to be fired, or they may be in a type of dual relationship with the apposing counseling. But regardless of the excuse, don’t be blinding by these overly used tactics. Only settle if you feel that it is in your best interest.