What Does a Structured Settlement Mean?
In a personal injury case, the injured person can receive compensation in a variety of ways. One situation is called a “lump sum” settlement, and that occurs when the injured person gets the entire monetary amount of their settlement at once. For example, if your settlement is $100,000, a lump-sum arrangement would mean you get all $100,000 in one go. However, since the passage of the Periodic Payment Settlement Tax Act of 1982, a different form of settlement has been increasingly common: structured settlement.
A structured settlement is an arrangement in which the opposing party pays the total value of the settlement to the injured person in installments. For instance, if your settlement is $100,000, you may sign an agreement for the opposing party to pay you $10,000 per month for a total of ten months. In the end, you get all of the money you are owed, but you get it in periodic payments rather than all at once.
Disadvantages of a Structured Settlement
The concept of a structured settlement inherently favors the paying party. If you are the injured person, it is often much better for you to get a lump-sum payment rather than having to wait for a series of payments over an extended timeframe. Below are just a few reasons that structured settlements can be bad for injured people.
Lack of Justice
When you agree to a structured settlement, you and your family may feel inadequately compensated for the harm done to you. While the opposing party will pay you the full amount of your compensation eventually, structured settlements allow them to do so at a more comfortable rate. There is sometimes a deep sense of injustice when the at-fault party is made more comfortable while you have had to suffer due to their actions or negligence.
Lack of Ease
Becoming injured through the actions or negligence of another person is a strenuous process. Given the fact that you can file your personal injury claim at any point up to two years from the date of your accident per the statute of limitations, plus the fact that negotiations can take months and trials can last even longer, your economic status can suffer for years from this single injury event. The stress of losing wages due to injury, coupled with mounting medical costs and the persistence of your regular bills like rent and utilities, can leave you financially burdened.
When you agree to a structured settlement, these financial burdens may not be adequately eased. For example, the amount you get each month may not be enough to cover monthly medical costs, or it might leave you with very little for living expenses after meeting those costs.
Lack of Control
Your settlement is your money, but having it paid to you in installments can strip you of control. When you are given a lump sum, you can do with that money as you please, paying off all your damages at once and avoiding interest, investing it, or taking advantage of opportunities as they arise. With a structured settlement, your options are much more limited, as you have a much lower amount at any given time.
Getting Money Now
The good news is that, with Silver Dollar Financial, you can apply for a structured settlement loan that gives you your money now. Instead of having to wait for these small payments to trickle in over who-knows-how-long, enjoy the full value of your settlement at once. The process for getting structured settlement funding is simple and straightforward, outlined below in three easy steps.
First, click the Apply Now button at the top of the page. This will take you to a form in which you can input information relevant to your case. Be sure to include:
- Your contact information
- Your attorney’s or law firm’s contact information
- Details about your settlement
- Details about your finances
Once we receive your application, Silver Dollar Financial will assess your need and our ability to provide you with a loan of up to $100,000. Important: Your credit score is not part of our evaluation process! We may request additional information from you or your attorney, but clients have been approved in as little as 24 hours.
This is the fun part! Once you are approved, Silver Dollar Financial will transfer your structured settlement loan to your bank account. You and your family will have your money as soon as possible so that you can take control of your finances and your life.
I Can Pursue Structured Settlement Funding Today
If your case resulted in a less-than-ideal structured settlement, consider getting the full value of your compensation now by applying for a structured settlement loan. To begin, click on the Apply Now button at the top of this page. For more information about loans from Silver Dollar Financial, call our offices at (844) 871-0628.