Injury due to the negligence of an individual or company may entitle you to a monetary settlement to help ease pain and suffering, and provide you with the means of paying off your expensive medical or legal bills. When you go to court, a judge will hear both sides of the case, weigh the facts carefully, and then make a decision based on the information gained during the court proceedings. This can often result in an award of a very large sum of money. And though it would be nice to get all that money in one whack, chances are good that it won’t happen in quite that way. Many times, judges simply won’t award money in a large lump sum.
Cause and Effect
Most of the time, a court will avoid paying out these large sums at once because of the effect it can have on a defendant’s financial situation. A huge lump sum, paid all at once, can ruin an individual and put companies out of business, affecting not just one person, but many, many people negatively. This can also prevent you from ever collecting the amount owed you through the settlement.
Advantages of Structured Payments
Though it can be good to get your money in a lump sum payment, there are benefits for courts who avoid handing out large settlements in one lump sum. By setting up a structured payment plan, courts can be assured you won’t blow through your award in a very short time, guaranteeing you a reliable income that can sustain you for the long term.
Another Option
If a court does decide that structured payments would be better for you in the long run, you still have an option if you feel you have a definite need for a lump sum cash payment. There are companies who will buy your settlement for a percentage (selling your settlement or annuity will never get you the full amount of your award), granting you access to more of your money than you would normally receive by monthly payments.
Facing these challenges is always better with a trusted and honest broker to assist you when starting the process of selling your settlement. Utilizing a broker can give you the advantage you need to keep yourself on a solid financial footing, and give you what you need in order to move ahead with your dreams and goals for the future.
Tags: cash for structured settlement, law, legal
