How is lost income figured in the calculation of a settlement?
(Roanoke, VA, USA)
I have seen several legal question and answer sites say that you add your income to your final settlement demand AFTER you use a multiplier for your Dr. bills, medical bills, etc. On this site, Injury Claim Coach, it says you use the lost income as part of your multiplier.
Which is it? I'm confused. This would be in the state of VA. Thank you.
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ANSWER for "How is lost income figured in the calculation of a settlement?":
Harry (Roanoke, VA, USA):
There isn't a specific rule or law which determines which amounts are factored into a final settlement demand offer. Many attorneys use the multiplier rule incorporating medical, chiropractic, therapy, or even dental bills.
For "soft tissue" injuries, such as sprains and strains to muscles, tendons, or ligaments, minor burns, cuts and abrasions, whiplash, and other relatively minor injuries, a multiplier of 2x to 3x is usually used.
For "hard injuries," such as fractures, serious burns, head trauma, damage to internal organs, and similar serious injuries, a multiplier of anywhere from 4x - 5x, and even higher is commonly applied. By using this multiplier method, the settlement demand is meant to cover all related expenses, including, but not limited to lost income, and pain and suffering.
You can use either multiplier method, with or without adding lost income. These are just general frameworks, meant to give a very rough estimate of a fair settlement demand. Be sure your final settlement demand reflects the amount you believe is fair compensation for your injuries and related expenses.
The above is general information. Laws change frequently, and across jurisdictions. You should get a personalized case evaluation from an attorney licensed in your state. Find a local attorney to give you a free case review here, or call (888) 647-2490.
Best of luck,
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