If an organization is responsible for any injury or death of a person, then that organization may provide regular payment to that person or family members of the deceased person over a period of time. This process is known as structured settlement. This is a process of providing compensation to the victim in the form of installment payments instead of a lump sum amount. In case you have faced injury due to the malpractice of an organization, you can become eligible for a structured debt settlement to compensate for your financial costs (due to the injury) and financial loses.
Understanding the process of structured settlement
Structured settlement involves payment in parts which is done over a period of time through an annuity system. The victim or the family members of the deceased (in case of death) may file a case against the organization (that is responsible) for the damage done. The issue can be resolved (by the organization) by offering a structured debt settlement to the claimant. To obtain structured settlement, the claimant must drop the case that is filed against the organization. It should be done before the case is taken to the court.
Cases in which structured settlement is applicable:
- In case of serious injury, that will require long-term medical treatment.
- Inability to work due to the injury or the inability to earn the same level of money that the person used to earn before.
- In case of death of a person where his/her family members will be in need of a regular income.
- Disability caused by the injury (temporary or permanent) which may call for a long recovery period.
The benefits of structured settlement
Severe injuries or death are intensely traumatic. They can make the situation worse by calling for massive financial trouble. Structured settlement can be a solution to at least the financial problems. You can take care of the medical debts and other forms of debts (as a result of the injury) by receiving structured debt settlement. Given below are the benefits of structured settlement:
1.) Financial security can be obtained ? Through the process of structured settlement, you?ll be getting regular payments over a period of time instead of one lump sum amount. It would give you a sense of financial security as a regular flow of income will come your way.
2.) Freedom from tax liability ? You?d not be required to pay any tax for the money received through structured settlement. This is indeed an advantageous feature of this method.
3.) Court hassles can be avoided ? Court involvement will call for a lot of costs from both the defendant?s and claimant?s end. The defendant party would often prefer to offer a structured settlement to avoid the hassles and charges of the court. It would be beneficial for you as well because you can eliminate court costs and receive a regular flow of payment. It will spare you of the need to go to the court whenever called for.
Structured settlement has its share of disadvantages as well. In case of senior citizens, this may not be a good plan due to life expectancy. It would be better for them to receive a lump sum amount with which they can live their life according to their wishes. In other cases, a lump sum amount can be more beneficial as it can be used to make more through investment or other money making medium.
Nevertheless, structured settlement can be a good way to ensure a regular flow of income. You can get rid of your debts caused by the injury with the help of this structured debt settlement.
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