How Are Settlements Paid Out?
Reaching a settlement in a lawsuit is a relieving time. You no longer have to deal with the depositions, court hearings or endless meetings. But, now that you've agreed on a settlement, how will you receive that compensation? Settlements are paid out in a variety of ways and some settlements are not even monetary. But, the most common ways to pay them out are installments and lump sum payments.
Installment or Structured Settlements
You've likely seen a commercial talking about a structured settlement. Structured settlements are not meant to be associated with this sketchier part of the law and are actually a common way settlements are paid out. These deliver the settlement amount in uniform payments over a specified time period. These types of payments mean you would receive regular payments throughout your life or at least a steady stream of funds for a few years (depending on the length of the settlement contract). While some people prefer their money upfront, others prefer a structured settlement, especially for tax purposes. These can reduce the tax liability you owe on your settlement and even in bankruptcy, the person may have to pay out the structured settlement.
Lump Sum Settlements
Lump sum settlement payments are paid out to you in full. These are often done to ensure you get your full settlement, and to ensure the individual does not file bankruptcy to limit how much you receive. These settlements, especially those in large amounts, are set up through a trust rather than delivered in a check. But, if the settlement amount is small enough, then you may be issued a check through your personal injury attorney.
Sometimes lump sums and structured settlements are combined into a unique payout method. For example, you could receive a large sum upfront, then the rest in structured, smaller payments. This is often what happens if you have a large amount of bills or costs you need reimbursed right away.
Class Action Settlements Are Not the Same
Class action lawsuits are paid from a general fund, with a claims administrator deciding how much each victim receives.
Maximize Your Settlement with a Skilled New Hampshire Personal Injury Attorney
If you want to increase the likelihood you will receive a settlement or increase the amount, then you need to hire a skilled personal injury attorney. Lucas Law PLLC can help you with your personal injury claim and ensure you receive the settlement you are entitled to. Contact us at 603-581-7102 now for a free consultation. Also Read :