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Understanding Structured Settlements

 

When two individuals or legal entities get into a dispute, one often ends up bringing the other to court. This happens quite commonly in the United States; statistics from the courts service show that there are more than 250,000 civil cases in America each year.

When the plaintiff (the person who brings a case) wins, the money they receive is called a settlement. Typically, you receive this money in a single lump sum. Sometimes, however, a judge will decide to award the money as a structured settlement instead.

This means that you get your money in regular payments over a given period of time. If you are awarded $100,000, for example, a judge might decide to give you $10,000 a year for ten years, rather than handing it to you all at once.

Read on as we delve a little deeper into the subject of structured settlements, and share some information about accessing funds.

Why Are Structured Settlements Awarded?

Judges decide to award structured settlements for a number of reasons. First and foremost, they may feel that the interests of the plaintiff would be best served by this arrangement; if the person is young and will have ongoing expenses for many years, it makes more sense for them to receive a structured settlement.

Similar logic applies if the plaintiff has a family that needs to be taken care of. Education costs and other expenses incurred by dependent children tend to arise in a consistent fashion over the course of many years.

The Advantages of Structured Settlements for Plaintiffs

Even if you don't have concrete obligations that make a structured settlement necessary, there are reasons why it can work better for you. The most obvious one is that the temptation to spend your settlement recklessly is removed; you can't spend what you don't have!

What to Do if You Need Your Money Up Front

If a judge gives you a structured settlement, but you need a large amount of money at once for one reason or another, you have options. There are companies that, for a fee, will trade your structured settlement payments for a lump sum.

Rightway Funding is one such company. Check out these reviews if you'd like to know more about the service it provides.

Getting the Right Payment Solution for Your Needs After a Courtroom Win

A structured settlement offers a victorious plaintiff a number of undeniable benefits. For one thing, it keeps you from blowing all your money as soon as you get out of court!

However, it's not always as simple as that. Many people have significant financial obligations that need to be met. In that case, it might be worth looking into alternative options when you receive your structured settlement.

Did this article answer your questions? If so, you'll be glad to learn we have lots more super-informative content just like this on our website! Check out our articles on tech, health, and much more besides.

 

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