07 Oct Lump Sum Personal Injury Settlements
When a personal injury lawsuit is won by the plaintiff (i.e., the accident victim or injured party) or when a personal injury case is settled with the defendant before trial, in many cases, the plaintiff will be able to choose between whether he would like his settlement paid out all at once in a lump sum or over time via a structured settlement. While this may seem like an easy or unimportant choice, how the plaintiff ultimately choose to have his personal injury settlement paid out can have various repercussions in the future; as a result, it’s essential that he take some time to consider the advantages versus the disadvantages of lump sum personal injury settlements.
Advantages of Lump Sum Personal Injury Settlements
Some of the benefits of choosing a lump sum personal injury settlement include that they:
- Can help individuals avoid significant tax penalties if the individuals have primary control over the settlement money
- Provide plaintiffs with a clear understanding of how much compensation they are receiving for their personal injury claims (In contrast, it can be difficult to calculate the actual value of compensation being received when a structured settlement is worked out.)
- Are not affected by inflation or a changing economy, whereas structure annuities can be devalued by either (or both)
Disadvantages of Lump Sum Personal Injury Settlements
Some of the disadvantages of choosing a lump sum personal injury settlement include that they:
- Can make it difficult for an individual budget the money over the long term (In fact, studies have shown that most individuals who opt for lump sum personal injury settlements end up spending all of the money within 5 years of getting it.)
- Are not necessarily protected by state law, meaning that a plaintiff may not be able to ultimately collect the payment if the payee successfully declares bankruptcy prior to issuing the payment.
Phoenix Personal Injury Lawyers
You have a choice in the lawyer you hire to handle your claim, and the choice you make can affect the compensation you receive. Make sure that your lawyer has the ability and experience to handle your case. If you have suffered from any type of personal injury and suspect that another party’s negligence or recklessness may be to blame, the Phoenix personal injury lawyers at the Law Office of Richard Langerman will fight to help you obtain the maximum possible compensation you deserve to cover your pain and suffering, lost wages, and medical bills.
For more than 25 years, our attorneys have been representing clients and aggressively defending their rights both inside and outside of the courtroom against defense attorneys, corporate lawyers and insurance company agents alike. In addition to having extensive experience handling motor vehicle accident lawsuits, our attorneys are also skilled at overseeing product liability cases, insurance bad faith cases and various other types of personal injury cases.
Our lawyers have a reputation for consistently and successfully protecting our clients’ rights and interests to ensure that they obtain the compensation they deserve. Because we accept cases on a contingency basis, you will pay no attorney fees unless we recover financial compensation for you. To learn more about your legal rights and receive a free initial consult, contact us today by calling (602) 240-5525.