- Holzman & Dickriede Attorneys at Law, LLC
- |
A $25,000 settlement sounds like relief. Then the questions hit fast. How much will you actually keep? What gets paid first? Why does the check feel smaller than the headline number?
We hear this every week from people looking for a Baltimore personal injury lawyer. You did not ask to get hurt. You just want a fair result and a clear number you can plan around. This guide gives you that. We will walk through the real-world math, the Maryland rules that matter, and the steps we use to protect your net recovery.
The Short Answer Up Front
Most Baltimore cases with a $25,000 gross settlement result in a take-home amount of $12,000 to $18,000. The spread depends on three things:
- The contingency fee percentage
- The case expenses that were advanced
- Medical bills and liens that must be repaid
Maryland personal injury contingency fees are most often one-third if a case settles before a lawsuit, and closer to 40% if a suit is filed. That is common across Maryland firms.
Medical liens and insurance subrogation can reduce the payout further if they are not negotiated down.
Now, let us break it down in plain numbers.
Step One: Start With The Gross Settlement
Gross settlement means the total amount the at-fault insurer agrees to pay to end your claim. In this example, the gross amount is $25,000.
The gross number is not your check. It is the pool of money that must cover several items.
Step Two: Attorney Fees
Most people hire a personal injury attorney in Baltimore, MD, on a contingency fee. That means we only get paid if we recover money for you. The fee is a percentage of the gross recovery, and it must be in writing under Maryland professional rules.
Typical Maryland ranges look like this:
- About 33% for a pre-lawsuit settlement
- About 40% of a lawsuit is filed, or the case is complex
Example
If your case settles before suit at 33%:
$25,000 x 0.33 = $8,250 in attorney fees.
Remaining balance: $16,750.
If the suit was filed at 40%:
$25,000 x 0.40 = $10,000 in attorney fees.
Remaining balance: $15,000.
Step Three: Case Expenses
Personal injury cases cost money to build. We advance these costs so you do not have to pay out of pocket while you are trying to heal. Expenses vary by case, but common items include:
- Medical record retrieval fees
- Police report and crash reconstruction costs
- Filing fees if a lawsuit is needed
- Expert reviews when injuries are disputed
Baltimore City Circuit Court filing and service fees are set by the Maryland Judiciary fee schedule.
In a smaller case, expenses are often modest. Think a few hundred to a couple thousand dollars.
Example
Let us say expenses total $1,200.
Take that from the remaining balance.
Using the 33% fee example:
$16,750 minus $1,200 = $15,550 left.
Step Four: Medical Bills, Liens, And Subrogation
This is usually the biggest surprise for clients. Even if health insurance paid your medical bills, the payer may have a right to reimbursement from your settlement. That is called a lien or subrogation claim.
Common Sources Of Repayment In Baltimore Cases
Health insurance subrogation
Many private plans demand repayment. We review the policy language and negotiate when allowed.
Medicare or Medicaid
Federal law requires repayment if they covered accident care. These liens do not go away on their own.
Hospital liens
Maryland hospitals can assert a statutory lien against part of a recovery for unpaid emergency care. Maryland law limits the lien to half of the recovery in many situations.
PIP repayment in auto cases
Maryland requires insurers to offer at least $2,500 of PIP coverage. It pays medical bills and lost wages early. Some PIP payouts can create reimbursement rights depending on the policy and facts.
How This Changes Your Take Home
Let us say your total medical bills were 9,000 dollars. Your health insurance paid $7,000. You still owe co-pays and a $2,000 deductible. The insurer asserts a $5,000 lien after adjustments.
We do not just accept that number. As Baltimore, Maryland, injury attorneys, part of our job is to challenge charges and negotiate reductions, especially when the settlement is limited.
Example
Remaining after fees and costs: $15,550.
Minus negotiated lien of $5,000.
Client take-home: $10,550.
If we reduce the lien to $3,000 instead:
$15,550 minus $3,000 = $12,550 in take-home dollars.
That lien negotiation is often the difference between disappointment and relief.
A Full $25K Settlement Example From Start To Finish
Here is a realistic Maryland breakdown.
Gross settlement: $25,000
Attorney fee at 33%: minus $8,250
Case expenses: minus $1,200
Medical liens after negotiation: minus $3,500
Estimated net to client: $12,050.
Change any one factor, and the number moves fast.
Why The Net Amount Varies So Much
Two people can settle for the same gross amount and walk away with very different checks. Here is why.
Your Medical Treatment Path
If you are treated mostly under PIP and then health insurance, liens are often smaller and more flexible.
If you were treated under provider liens or had a long hospital stay, the lien share can be higher.
The Insurance Coverage Limits
Many Baltimore crashes involve minimum policy limits. Once the limit is reached, there is no extra money to cover liens unless another policy applies. That is why we look for:
- Underinsured motorist coverage
- Employer or business policies if a driver was working
- Multiple liable parties in serious cases
Whether A Lawsuit Was Needed
If the insurer delays or denies and we have to file suit, the fee percentage is usually higher.
The tradeoff is that lawsuits also increase settlement value in many contested cases. Net recovery can still be better even with the higher fee.
Steps You Can Take To Protect Your Share
You do not control the crash. You can control some of what happens after.
Get Medical Care Early And Follow Through
Gaps in care let insurers argue your injuries were minor or unrelated. That lowers the settlement value and makes lien negotiation harder.
Use PIP If You Have It
PIP gives immediate coverage for care and lost wages without waiting for the claim to resolve. Most Maryland policies include it unless you opt out.
Tell Us About All Insurance Right Away
We need every policy on the table early so we can plan the lien picture and avoid surprise deductions later.
Do Not Sign A Lien Without Legal Review
Some providers ask you to sign broad lien forms. Those terms can be worse than Maryland law requires. We can often narrow them.
What We Do As Your Baltimore Personal Injury Lawyer
When we represent you, our focus is not just the gross settlement. It is what you keep.
We build the claim to maximize value. We document damages clearly. We pressure insurers with facts and deadlines. We also work hard on the back end. That means:
- Auditing medical bills for errors
- Using Maryland collateral source rules to support full value damages while still negotiating liens down
- Pushing for lien reductions based on limited funds and fairness
- Timing settlement and disbursement to avoid avoidable offsets
That is how we turn a $25,000 settlement into the best possible net result.
Talk With Us About Your Specific Numbers
Online examples help. Your real net depends on your injuries, your coverage, your bills, and your case posture. If you want a clean estimate for your situation, talk with us. A quick review from a personal injury attorney in Baltimore, MD can tell you what deductions to expect and what we can do to lower them.