Assessing your Lawsuit Payout Options
There are numerous ways to end a lawsuit depending on the circumstances of your case and the leniency of the judge.
The outcome of a lawsuit depends on the circumstances of the case, which is presided upon by the judge. The judge determines if you get financial compensation for your injury, medical malpractice, or any other lawsuit.
The outcome of a lawsuit depends on the circumstances of the case, which is presided upon by the judge. The judge determines if you get financial compensation for your injury, medical malpractice,
or any other lawsuit. Whether your lawsuit finally gets settled by a judge or through an out of court settlement, there are two payout options available for you;
I. A lump sum payment agreement
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A lump sum is a one-time payment option in which you receive the total amount of your settlement all at once minus the taxable dollar amount.
II. A structured settlement
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Structured Settlement, on the other hand, provides you with a consistent payment stream spread over an extended period to keep the recipient financially stable for a long period.
Lump Sum vs Structured Settlement
When your case is settled, you will have to decide to either receive your payment as a lump sum or a structured settlement.
A Lump Sum
is a one-time payment option in which you receive the total amount of your settlement all at once minus the taxable dollar amount.
Structured Settlement,
on the other hand, provides you with a consistent payment stream spread over an extended period to keep the recipient financially stable for a long period.
Once you have reached a settlement figure whether, through a judge or an out of court settlement, you will have to elect to receive your payments through one of the above-listed mediums.
They both serve different purposes, and their advantageousness depends on the circumstances of your case and present situation. This means that there is no particular right payment option for any individual, but considerations based on the plaintiff’s condition will help to arrive at a workable medium for them.
One of the significant factors to consider is Financial Status. For a plaintiff who has direct expenses to cover after the lawsuit, a lump sum might be the right way to go as a lump sum of money gives them the cash at hand needed to offset their urgent bills.
On the other hand, if the plaintiff is already financially stable or has no need to cover any immediate expenses, it is usually best to elect to receive payments through a structured settlement which spreads the total amount over several years via a consistent payment stream.