Should I Take a Lump Sum or Structured Settlement?

Staff Writer | February 21st, 2020

If you’ve had to bring a lawsuit against an individual or company for a personal injury, your eventual settlement can be paid in one of two ways: a lump sum or a structured settlement. If the settlement is paid in a lump sum, you receive all of the cash at one time. If it’s paid as a structured settlement, you receive guaranteed periodic payments over time.

Let’s say, for instance, that the defendant settled for $500,000. Rather than receiving the $500,000 in one lump sum, the plaintiff receives a structured settlement. A $500,000 settlement may be paid in installments of $50,000 per year for 10 years, for instance, rather than a one-time payment of $500,000.

Structured settlements are used in many different kinds of personal injury lawsuits, including cases involving wrongful death, premises liability, product liability, and more. They are increasingly being offered in medical malpractice, class action lawsuits, and mass tort cases. Finally, if your case involved divorce, worker’s compensation, property loss, sexual harassment, or employment discrimination, you may have received a structured settlement.

Structured settlements can save you on taxes versus a lump sum, and for many people work as a form of income or annuity every year.

How To Receive More Than Your Structured Settlement

Structured settlements can work in many instances. But they may be less than advantageous in others. Say you’ve been out of work for some time due to your injury, and bills are mounting up. You may want more of your settlement to get out of debt. If you have a large pile of doctor’s bills from your injury, you can use a larger payment to get up to date on medical expenses.

What if your children need college tuition, or you want to buy a new house? Or what if you have a great business opportunity, and want to start your own company? A larger settlement payout might be more appropriate for all of these needs.

That’s where LawStreet Capital comes in. If you’ve won a suit and are receiving a structured settlement, LawStreet Capital can help you get the money now, rather than waiting for annual payments to accumulate.

We are a leader in plaintiff funding throughout the industry. By obtaining funding through us, you are getting access to what is rightfully yours – the settlement you received. We can grant you funding at no risk because our funding is based on the amount you have already won in court.

Obtaining a Cash Advance

LawStreet Capital can provide a cash advance on your structured settlement, leaving you with more of it at one time for your financial needs. You can also sell your structured settlement to us.

Call LawStreet Capital representatives today to start the process. We are ready to help you now!