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When someone files a lawsuit against another person, they do it with the goal of receiving compensation for what the defendant did. Whether it was a truck accident or medical malpractice, you need money to recover from what happened. That includes medical expenses and recovering your losses if it was a car accident.
Regardless of that, once the judge determines the settlement, they also decide how you get paid. Victims of negligence can be paid in two ways. Both of them have advantages and disadvantages. Yet, you receive your money either way.
The judge doesn’t always decide how the defendant pays out the settlement, though. If that’s your case, your lawyer needs to negotiate with the defendant to determine the best way for you to receive that money. Considering that, it’s essential you know how both payment methods work to make that decision easier.
Dive into this page to learn how settlements are paid out! Even if you are not going through a lawsuit process yourself, learning new things is never a bad thing. We are the Powell Law Firm. Our legal services can help you get the compensation you need. Contact us to receive a free consultation on your case!
Lawsuit Negotiation
As we mentioned before, the judge doesn’t always decide how the maximized settlement is paid out. That’s because the plaintiff and the defendant can try to reach an agreement regarding the lawsuit and how to pay the compensation you are asking for.
That negotiation can end up with the victim receiving more or fewer funds depending on what the St Louis auto accident attorneys discuss. However, if they can’t get to an agreement, the case is taken to trial.
Regardless of that, most civil cases are solved with those agreements. That means you have to decide in which way you want the defendant to pay for your compensation.
This is a common process in the U.S. However, it’s not that popular in other countries. Lawyers negotiate their way out of trials even in penal cases. That’s because the prosecutor can try to make a deal to decide what happens to the defendant and the lawyer is paid afterwards.
Different Ways to Pay Out the Settlement
The first method to pay out a settlement is by sending a lump sum. That means you send all the compensation directly to the victim in a single transaction. After that happens, all the parties involved in the case can forget about it.
Regardless of that, receiving a lump sum has its pros and cons. If you receive all your money in one transaction and don’t know how to manage it, you may lose all your funds over bad decisions or poor investments.
On the upside, you can invest that money to generate profits. That way, you can double the benefits you receive from the compensation. However, there are some things to consider before investing your compensation money into something. The funds you receive from your compensation are tax-free. The ones you get from investments are taxed.
If you don’t want to receive your compensation in a lump sum, you can ask for structured settlements. That method allows you to get periodic payments that can be monthly or annually. People sometimes ask brokers to organize the structured settlements to make sure the payments are enough to cover your hospital bills and related expenses.
This is a flexible method since it allows you to adapt the settlements to your needs. Structured settlements are the best option for people who are not good at managing their funds. When the judge decides the settlement payment method, they tend to go for this alternative.
You have to decide carefully, though. Once you decide on the payment method, you can’t change that choice. Take all the time you need to make your decision. What you decide can determine how much you can benefit from your compensation.
Bottom Line
Deciding how you want your compensation to be paid out is a crucial part of the lawsuit process. That’s the reason you need a skilled St Louis personal injury law firm that helps you throughout the process and tells you everything you need to know about it.
If you need a personal injury lawyer, Powell Law Firm is here for you. We can address many kinds of legal cases, so contact us and see if we can help you get compensation for what happened to you!