Business, Legal & Accounting Glossary
Personal injury cases often conclude with the plaintiff or injured party receiving a settlement from the insurance company. Sometimes, the settlement is a one-time, lump-sum payment and the matter is closed. Frequently, the settlement includes a large payment, to be delivered over a long period of time.
This type of personal injury settlement, a structured settlement, can be a true asset and just compensation for an injured person. However, from time to time there may be a need to make a major purchase, such as a house or a new business, that requires a large sum of cash.
Be sure to read the retainer that you sign with your attorney before you agree to any settlement and consider what his share will be. In most states, personal injury attorneys collect anywhere from 30-40% of the total settlement. Others will calculate their fee after any medical bills have been paid, using the net settlement amount.
In any case, be sure that the amount of the settlement will cover all the outstanding expenses, pay your attorneys fees, and still have enough leftover to satisfy your needs.
If you are receiving a structured settlement, you can obtain a lump sum of cash by selling a portion of your future settlement payments to a settlement broker or capital company.
The transaction is not as fast as buying a car, as you will need to have a court approve the settlement buyout contract, but if you use an experienced settlement broker the process will flow smoothly and should be finalized within a few months.
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This glossary post was last updated: 26th November, 2021 | 0 Views.