Frequently Asked Questions
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What is a combination settlement?
Some settlement amounts are made by both lump sum payment amount and structured settlement amount. For example, the victim may receive a large sum upfront payment, with the balance of the amount paid out in structured, smaller amounts over time.
What is a lump sum settlement?
A lump sum settlement is one way injury settlements are paid. This is when the total amount of the settlement is paid all at once. Many victims prefer this method in order to ensure they receive the amount they were awarded without any future issues, i.e. the at-fault party filing for bankruptcy in order to avoid paying the settlement amount. If the settlement amount is a large amount, the payment may be set up through a trust.
What is a structured or installment settlement?
A structured settlement is one way injury settlements are paid. The payments are made in uniform amounts over a specified period of time. The victim receives regular payments, over a few years up to throughout their life, depending on how much the settlement amount was and how long the settlement contract is. Many people choose a structured settlement in order to reduce any tax liability that may be associated with the funds.