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What Are The Positive Aspects Of Structural Settlement For The Liable And Injured Parties?

Comments Off on What Are The Positive Aspects Of Structural Settlement For The Liable And Injured Parties? 27 March 2011

If you have had a personal injury case decided in your favor, you may receive what is termed a structural settlement. This is a settlement for personal injury damages that isn’t a lump sum payment but rather a series of payments over time.

The payments are like payments on anything else that you might be making as part of your bills, like a car payment or a house payment, but instead the liable party is paying on their settlement to the injured party, until the entire amount is paid out.

It works like this. When you are injured and you press a lawsuit against the other party, the other party is found liable and you are awarded damages. The settlement damages are then scheduled for a payout over time. It is like you are a creditor, and the liable party has to make payments on what they owe you, although they do not pay interest on this. It simply breaks down the amount owed into regular payments.

Your damages will be paid out over the specified period of time. The total amount will be divided up such that it is paid in full. Generally this is paid monthly, and the full amount paid out over years. The exact time frame depends on the amount of the total settlement and the monthly payment.

Believe it or not, a structured settlement has good parts for both the liable party and the injured party. The injured party benefits from getting money paid over time. Otherwise they would end up getting it all in one lump sum.

This covers them for future issues that may arise from the injury. At the time of settlement, you may not accurately know how long recovery can take.

It isn’t just the injured party that benefits when damages are awarded via structured settlement. The liable party also benefits. The liable party ends up avoiding a huge tax burden. The tax amount is reduced since the settlement is paid over time.

When you have a personal injury case, a structured settlement may be your best option. It helps to know how these work. Such a settlement can ensure you have income over a long period of time, which can really be a major plus.

In addition to settlements, this author additionally regularly publishes information on buying individual health insurance and dental sedation.

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