Structured Settlements and Lump Sums in Civil Claims

You were injured by a negligent party, and you decided to take legal action by filing a suit against the party that caused your harm.  You work through the personal injury process and are successful with your claim. This is great news. Now it is time to get paid for your losses, but how would you like to receive your settlement? There are two options, and a person who wins their injury claim can consider each and select the means that make the most sense for their situation.

Victims injured in an unintentional injury accident like a car crash, medical malpractice, or a slip and fall incident, for example, may sustain extensive damages. Severe injuries and medical treatment to lost wages from time away from work and pain and suffering are just some of the common damages that may be included in a personal injury claim. It is imperative that a victim has their damages fully identified and calculated because once a claim is closed, it is usually not possible to go back and request more compensation.

Working with an experienced attorney who is trained in tort law and has a track record of success handling personal injury claims can help maximize compensation. The Philadelphia personal injury law firm at Edelstein Martin & Nelson, LLP is a full-service personal injury firm that is dedicated to helping victims get the most out of their personal injury claims.

Structured Settlements Vs. Lump Sums

Individuals that win their civil suits for compensation can decide that they want all of the money they are owed paid to them at once. This is called taking a “lump sum” payment. There are several reasons why someone may decide that a lump sum payment makes sense. For instance, if their injuries were extensive and they required intensive medical care and treatment, their medical bills may be quite costly. A lump sum would allow them to pay these bills and any others that accumulated while they were injured and working through the legal process.On the other hand, a structured settlement may be more appropriate to obtain payment. When a structured settlement is chosen, the money that is owed to a victim is paid to them in installments until all of the money has been paid out. A victim may decide that monthly payments work best or payments made on a yearly basis will do the job.Structured settlements may be beneficial for those who may not do well managing money. Having portions of money dispersed on a schedule can help alleviate the risk of spending the money too fast and making unwise choices with a large sum. It may also be helpful in situations where a person is unable to work but still needs money coming in on a regular basis. In addition, there could be tax benefits from taking a structured settlement over a lump sum.

Speak with an Attorney at Edelstein Martin & Nelson, LLP Today

If you were injured by a negligent party, the legal team at Edelstein Martin & Nelson, LLP can help you with your claim. Additionally, Edelstein Martin & Nelson, LLP offers trusted guidance throughout the entire process, including what options you have to receive your settlement. Call today to schedule a free consultation with an experienced attorney at (215) 731-9900.