Should You Accept a Lump Sum or Structured Settlement for Injury in New York City
Many injury cases in New York City are resolved through settlement rather than trials. The nature and terms of your settlement might be complex, and there is more than one way you might receive payment.
You might accept a settlement as a lump sum payment or negotiate a structured settlement agreement. Knowing which option is best for you can be difficult, and a personal injury attorney can help you decide which is the better choice. The benefits of each option are compelling. Lump sums offer more money up front, while structured settlements usually pay out more in the long run. You should also consider potential disadvantages. Lump sums might pay out more up front, but they tend to be smaller than structured settlements. Meanwhile, structured settlements might take years to pay out fully. Discuss your damages and needs with a lawyer to choose the right option.
A lump sum or structured settlement both have pros and cons, and our New York City personal injury attorneys can help you decide which option works best for you. Call The Carrion Law Firm at (718) 841-0083 for a free review of your case.
Is a Lump Sum or Structured Settlement Better for Your Injury Case in New York City?
Whether a lump sum or structured settlement agreement is right for your case depends on multiple factors unique to your situation. While each option has benefits and drawbacks, one might fulfill your needs in ways the other does not. Talk to our New York City personal injury attorneys about choosing the best settlement option.
A structured settlement is a settlement agreement where the defendant pays the plaintiff the agreed-upon sum of money over a period of time. In many structured settlements, plaintiffs might receive settlement checks weekly, bi-weekly, or monthly. Structured settlements are more common in cases where the plaintiff’s damages are worth a considerable sum of money and the defendant cannot or does not want to pay it all at once.
A lump sum settlement is an agreement where the defendant makes a one-time settlement payment to the plaintiff. There are usually no future settlement checks. Lump sum settlements are better suited for cases involving somewhat smaller damages or when the plaintiff wants more money up front.
Benefits of Lump Sums and Structured Settlements in New York City Injury Cases
Lump sums and structured settlements both have appealing aspects. Depending on your situation, one or the other might very well suit your needs. Before finalizing any settlement agreements, talk to our New York City personal injury lawyers about your case.
Lump sum settlements might appeal to those who need a lot of money right away. Often, defendants have mounting debts and expenses that need to be taken care of, and they might not have time to wait for numerous paychecks to roll in over weeks, months, or years.
A lump sum settlement usually gives plaintiffs more money for their immediate needs. The settlement is paid in one large payment, and the plaintiff may then use it as they see fit. Additionally, there is no need to worry about arranging future payments or waiting for more settlement checks, and you can move on from the ordeal faster.
One of the biggest advantages of structured settlements is that they might be larger, and the overall settlement amount tends to be significant. Payments are made over time so such a large sum does not have to be paid all at once. You can also sell or transfer your rights to receive payments, which might come in handy under certain situations you can discuss with our Binghamton personal injury attorneys.
Disadvantages of Structured Settlements and Lump Sums in Injury Cases in New York City
There are some drawbacks to lump sums and structured settlements that you should consider when making a decision. You can talk about the pros and cons of settlement options with our New York City personal injury attorneys.
While lumps sum settlements offer a large, up front, one-time payment, this can also be a bit of a disadvantage. While a large payment can help you take care of immediate needs, it might be challenging to stretch over potential future expenses. For example, if your future medical expenses related to your injuries are greater than anticipated, you might have difficulty paying for them with the lump sum settlement.
In addition, the lump sum payment might be a smaller amount than what the case is worth. Rather than pay for the full extent of your damages over time, the defendant might agree to a lump sum settlement to pay you a bit less. The one-time payment might be large, but a structured settlement might be larger once fully paid out.
Speaking of structured settlements, they might add up to a greater sum over time, but the regular settlement payments might not be enough to cover immediate needs. Suppose you have extensive medical bills and vehicle repair costs to contend with, and maybe mortgage payments are unpaid because you are too injured to work. Structured settlement payments might help you get started, but they might not be large enough to cover all your debts now. Instead, you end up paying down these debts over time.
How to Choose Between a Lump Sum and Structured Settlement for Your New York City Injury Case
The ins and outs of settlement negotiations and agreements are complex and tricky, to say the least. Before deciding whether to accept a lump sum or structured settlement, our Albany personal injury attorneys can help you weigh these options so that you make the right decision.
Discuss what you need with a qualified attorney. If your damages add up to a relatively small or moderate amount, a lump sum settlement might be the best way to get your money quickly. If your case is worth a very large amount of money, such as in catastrophic injury cases, a structured settlement might get you more money over time.
We can assess your damages so that you know the full value of your case. You must also determine if you are okay with accepting a lump sum and possibly leaving some money on the table. Additionally, you must determine if you are okay with getting the full extent of your damages, even if it takes a very long time.
Contact Our New York City Personal Injury Attorneys for Assistance
If you have an injury case in New York, a lump sum or structured settlement agreement might help you get the money you need in a way that is most helpful to you. For a free case review, call our Garden City personal injury attorneys at The Carrion Law Firm. Call our team at (718) 841-0083.