Did you hear about Escola v. Cola?
Gladys Escola was waitressing in a restaurant, putting away glass bottles of Coca-Cola. Suddenly, one of the bottles exploded, causing permanent injuries to her hand. Thankfully, Gladys was able to successfully sue Coca-Cola and receive a large settlement payout.
If you or someone you know is the plaintiff in a personal injury lawsuit, you might be wondering how the payout process works. You probably have questions like, what is a structured settlement, and how do lawsuit settlement loans work?
Luckily for you, we’ve created this short guide to help you understand the ins and outs of structured payouts. So take a look! By the time you’re done reading this article, you’ll finally understand what structured payments are all about.
What Is a Structured Settlement?
What is a structured settlement exactly, and how does it work? First, for a structured payment plan to take place, there has to be a personal injury tort claim. If the plaintiff wins their case, they’ll have to choose how to receive the settlement money.
Here are the choices the plaintiff will have:
- Structured Settlement
- Lump-Sum Payment
- Combination of Lump Sum and Structured Payments
In addition to personal injury cases, structured payouts can also happen with product liability cases.
How Does a Structured Settlement Work?
If the plaintiff chooses to receive the structured payments, there will be negotiations at mediation or whenever the case settles.
The negotiations will determine the fixed amount each settlement payment will be. Finally, after reaching an agreement, the plaintiff will begin to receive the money in a stream of payments.
Choosing the Right Payout Option for You
If you’re struggling to decide whether to choose a lump-sum payment or a structured payout, take a moment to assess your financial situation.
Do you have a debilitating injury that’s going to cost you a lot in medical expenses? If yes, it may be in your best interest to get a lump sum payment instead of structured payments.
If you’re looking for a reliable lifelong income, with the least amount of taxations, a structured payout plan would be your best option.
If you decide to get a structured payout, you can always explore different funding and lawsuit settlement loans.
What Is Pre Settlement Funding?
What is a pre-settlement loan? It’s a loan you can apply for while you’re waiting for a resolution in your personal injury case. You’ll have access to money that most likely will be yours shortly.
How can you qualify for lawsuit settlement loans? First, you have to file a lawsuit. Next, you’ll have to apply for a loan from a trustworthy funding company.
The funding company will then offer you a funding proposal that you’ll need to review with your attorney.
Finally, you and your attorney can decide if the pre-settlement loan terms are right for you.
Get the Money You Deserve
The next time you hear someone asking, “What is a structured settlement”, you’ll already know the answer! We hope that our article was able to help you decide what payout option is right for you.
When it comes to needing a tax-friendly and stable income, a structured payout is always the best choice. For more articles like this one, check out the rest of this site.