What is the difference between a structured settlement and a lump-sum settlement?

In California, the difference between a structured settlement and a lump-sum settlement is the way the personal injury award is paid out. A structured settlement is a payment plan where the plaintiff is paid in regular payments, generally over a period of years. For example, the plaintiff may receive a set amount every month or every year for a predetermined amount of time. The advantages of a structured settlement is that it provides a steady stream of income, and it allows the plaintiff to budget for their future needs. A lump-sum settlement, on the other hand, is a one-time payment. The plaintiff is paid a predetermined amount in a single lump sum. This is often the preferred method if the plaintiff needs immediate funds or needs to pay off any outstanding debts. The advantage of a lump-sum settlement is that the plaintiff can immediately use the funds as they wish. However, the drawback of a lump-sum settlement is that the plaintiff does not have a consistent stream of income and may not have the funds to cover their long-term needs. In summary, a structured settlement is a payment plan where the plaintiff is paid in regular payments and a lump-sum settlement is a single payment of a predetermined amount. The pros and cons of each settlement should be carefully considered and discussed with an attorney before deciding which option is best.

Related FAQs

How can I prove my lost wages due to an injury?
How can I document my injuries and losses in a personal injury case?
How can I prove the other party is liable in a personal injury case?
What makes a good personal injury lawyer?
What is the average amount of time to settle a personal injury case?
How much will I have to pay my lawyer if I win my case?
What should I do if the other party tries to settle without going to court?
How can I prove my pain and suffering in a personal injury case?
What are the common types of damages in a personal injury case?
What is the difference between a personal injury claim and a lawsuit?

What is the difference between a structured settlement and a lump-sum settlement?

Related FAQs

Related Blog Posts