Pre Settlement Funding White Plains
Cons of a Structured Settlement
When it comes to filing a personal injury claim White Plains lawyers have seen a steep increase in the number of cases in recent years. As they have across all of NYC and the state, car accidents are up, as are the number of drunk drivers. In many cases during a personal injury claim White Plains plaintiffs may be far too injured to work or continue to receive income from their job, therefore they must find an alternative means of paying their bills such as pre settlement funding White Plains experts at Express Legal Funding, known for having the best legal funding White Plains has to offer. This money can help you pay for a number of expenses while you are injured and therefore cannot work, before your settlement comes through. In many cases, as this is the case, and individuals are in need of funds as soon as possible, they may also choose to take on a structured settlement, rather than going to trial as this makes it far more likely they will get paid and they will be able to pay back their pre settlement funding White Plains defendants also get to make their payments in installments, rather than in a lump sum, which can usually be quite difficult.
However, while there are a number of benefits associated with a structured settlement, there are also a number of cons as well. And clients need to be very weary of such issues, as they can be a huge detriment to their situation, especially during such a stressful time such as this. According to the team at Express Legal Funding, the best legal funding White Plains has to offer, agreeing to a structured settlement comes with a few risks. Here are some of the reasons you may want to reconsider before agreeing to a structured settlement.
· Taxes on Punitive Damages and Fees
While most of your settlement is tax-free, other portions including punitive damages and attorney fees are taxable. This means that by breaking it up into a sum of its parts, as opposed to a larger, lump sum payment, you might be met by a series of unwanted fees and taxes, for you damages
· Strict Payment Plan
Structured settlements lack flexibility for payment scheduling. Once you agree to a payment schedule, you cannot change it, even if your financial circumstances change. In many cases, when it comes to pre-settlement funding White Plains individuals may need to pay back their legal funding team to avoid certain penalties and they may want to get paid earlier, this is not possible as it is structured in a certain way.
· Penalties and Fees
Selling or withdrawing a portion of your structured settlement involves several penalties and fees from both the IRS and the managing insurance company.
· Loss of Interest
Since a structured settlement doesn’t accrue interest, you miss out on any interest you could have earned if you accepted a lump sum and placed it in an interest-bearing account.
While these issues may hamper your structured settlement and make it less worthwhile, you can also sell it, and obtain a lump sum that way but you will be taking some loss on the price there as well. Since structured settlements don’t have any payment flexibility, some plaintiffs choose to sell their structured settlement in exchange for a lump-sum payment. People choose to sell their structured settlement for a variety of reasons, but these are by far the most common. For more information on structured settlements and funding, be sure to contact us at Express Legal Funding today.