Personal Injury Settlement and Tax Liability
In the United States, a majority of civil litigation consists of personal injury lawsuits. According to the US Department of Justice, Bureau of Justice Statistics, some form of personal injury was involved in 60 percent of the 26,928 real property, contract, and tort trials in 2005. Statistics show that 4 to 5 percent of personal injury lawsuits go to trial. This means that 95 to 96 percent reach settlement before it can go to court. According to experts, 90 percent of personal injury cases that do go to trial do not win. A settlement occurs in a legal case when a resolution is agreed upon