Information About Personal Injury Structured Settlements

When you are in the middle of a personal injury lawsuit, your mind is in constant motion with questions about all the possible outcomes of your case. Although you might have an experienced personal injury lawyer on your side who is fighting for your rights to compensation, it can be tough putting your mind at ease until the case is completely settled.

Many people are worried about their settlements and wonder how they will receive their payment in the end. Questions like, “Will I get all my money at once?” and “Is it possible that my compensation will be awarded as a structured payment?” are all common concerns by most personal injury plaintiffs.

Injury Lawyers Indianapolis Indiana 317-881-2700
Injury Lawyers Indianapolis Indiana 317-881-2700

The Benefits of Structured Accident Settlements

A structured settlement is an agreed periodic payment plan in which the recipient receives a set amount of money over a specified period. Structured payments are a fairly common method of dispersing personal injury settlements and verdicts. Whether a structured settlement is a good result or a bad one really hangs on the recipient. There are both advantages and disadvantages of structured payments, depending on personal perspective.

The number one benefit of a structured settlement is that you usually receive more money overall. In a lump sum payment, the amount is usually negotiated lower. Another major benefit is personal financial management. When a large sum of money is paid out overtime, it is typically easier to manage your finances, pay bills, save money, and maintain a positive financial portfolio. It may be especially beneficial in terms of tax liabilities as well.

Additional Advantages of Structured Payments:

☑ Simpler Tax Planning
☑ Possible Income Tax Advantages
☑ Additional Annual Income
☑ Broader Subsidy Opportunities
☑ Budget Protection

Disadvantages of Personal Injury Structured Settlements

One of the common downfalls to structure pay is limitation. For those consider themselves financially savvy, not receiving your full compensation can be a huge restriction since you cannot use the money to make any lucrative investments. In other cases, a personal injury victim has already paid all of their hospital bills, medical expenses, and other related expenses, out of pocket. They have also already incurred lost wages from work. So, by not receiving a full payment can be frustrating since victims in this type of situation is simply trying to put the money back where it was before their accident.

Timeline for Receiving a Structured Settlement

If you win your claim and an insurance company agrees to give you a structured settlement, you will not be given a paycheck right away. Instead, you will be paid a set amount over a set period of time. The terms of structured settlement agreements vary from case to case, and payment amounts, and schedules can be set in many different ways. These payments generally begin as soon as all the paperwork is processed; however, this time period can vary, and sometimes can take up to one year to begin receiving payments.

Lastly, a settlement can also be a portion paid out up front in cash and a portion in a structured settlement.

Are you looking for a seasoned personal injury law firm to obtain the maximum settlement for your Indiana accident claim? Contact the Law Office of Craven, Hoover, and Blazek P.C. at 317-881-2700 to schedule a free personal injury case evaluation. You can speak directly with a trusted and experienced Indianapolis personal injury lawyer over the phone, via online video, or in person at our office. We represent clients throughout the state of Indiana.

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Pros and Cons of Insurance Company Structured Settlements
The Benefits of a Structured Settlements

Pros and Cons of Insurance Company Structured Settlements

When an insurance company agrees to pay someone a settlement, they may offer to make payments periodically rather than in one lump sum. This is called a structured settlement, and it does sometimes occur in insurance claims and lawsuits. At first thought, you might expect a structured settlement to be a bit of a disadvantage to the payee, however there may be more benefits to structured settlements that meets the eye. On the other hand, there are also a few disadvantages, or what some would consider cons to structured settlements.

Continue reading to learn some of the pros and cons of insurance Company structured settlements, and where to get the best legal advice regarding your potential accident claim.

Personal Injury Attorney Law Firm
Personal Injury Attorney Law Firm 317-881-2700

Potential ADVANTAGES of Structured Settlements 

If you were to ask a group of individuals who have received a structured settlement in the past from an insurance company, they would likely tell you that the primary benefit they experienced was secure financial management. By receiving their settlement in increments rather than one lump sum, they were able to better control their spending and savings, and therefore, practice improved financial management.

Here are some additional prospective benefits to receiving a structured settlement:

In many cases, a structured settlement usually winds up paying out more money than a lump sum payment.

Structured settlements can also make financial planning, namely tax planning, a lot easier when compared to the process following a lump sum payout.

Due to the added annual income a structured settlement provides, recipients may be eligible for certain tax benefits and advantages.

Many recipients of structured settlements enjoy adding to their annual income as an alternative to receiving a bulk payment from an insurance company settlement.

By receiving a structured settlement in periodic payments, recipients can better control their spending and savings over time.

Potential DISADVANTAGES of Structured Settlements

When it comes to the possible disadvantages of structured settlements, there may be a few. In fact, if you were to ask the same group of individuals in the last example, they would likely have a few complaints as well. One of the main disadvantages discussed among structured settlement recipients and legal advisors is the fact that it can hold you back from taking advantage of certain investment opportunities, such as investing in stocks, bonds, real estate, business, schooling, and more.

Here are some other possible cons to accepting a structured settlement:

In some scenarios, a structured settlement can turn out to be less money than a lump sum payment after you consider commissions, fees, and inflation.

Many are opposed to structured settlements from insurance companies because they don’t like the idea that a financial institution has control of their settlement.

There are several legal regulations restricting how you can sell your structured settlement, if you ever choose to do so.

Trusted Legal Advice About Insurance Settlements for Indiana Injury Claims

Call The Law office of Craven, Hoover, and Blazek P.C. at 317-881-2700 to discuss your potential Indiana personal injury claim with a licensed accident attorney you can trust. Our law firm offers free initial consultations and never collects lawyer fees unless we recover a settlement or judgment for you. Get started on your path to financial and emotional recovery with a simple phone call to our Indianapolis accident injury lawyers, today.  We represent clients throughout the State of Indiana.

Indianapolis Personal Injury Lawyers 317-881-2700
Indianapolis Personal Injury Lawyers 317-881-2700

Personal Injury Settlement Checks

When a person is injured in an accident and sues for compensation, upon winning their case they should receive a financial settlement in the form of a check. This can take up to two years depending on the number of appeals, which is a common occurrence for personal injury lawsuits. Continue reading to learn about the process behind receiving a financial settlement after winning a personal injury lawsuit and more.

Personal Injury Lawyers 317-881-2700

Personal Injury Lawyers 317-881-2700

Order of Settlement

After a case is settled or a trial is won, a personal injury lawyer has the responsibility of relaying this information to the court. When the court is informed that a case has been settled, they issue an “order of settlement”, which obligates both parties to completing a series of settlement paperwork. Depending on the state or the court, this paperwork must be completed and returned to the court within 30 to 60 days. One of the most vital components to the settlement paperwork is the release.

Release Documents

The defense attorney is responsible for preparing the release document. It is a document that underlies and sets forth all the terms of the settlement. Although this document can be narrowed down to a few short pages, it is common for defense attorneys to take their time on a release document, filling it with thick legalese reaching up to 20 pages long or more. Upon completing this release document, the defense lawyer will send it to the plaintiff’s lawyer for approval.

A release can be completely honest and direct, or it can be quite objectionable. This is why the accident attorney needs to approve it before it is finalized. This segment of a personal injury settlement can take some time because both attorneys have to come to an agreement. It can take days or even weeks to come to a reasonable consensus, delaying the entire settlement process. But in the case that the two attorneys cannot agree on the release, they will ask a judge to make the decision for them.

Now, when the release is agreed upon by both lawyers, the personal injury lawyer will send the release document to their client to review it and sign it. It is common for clients to do this in the presence of a licensed notary, perhaps in triplicate, for this part of the process. It is important for injured clients to carefully read through the release and asking their lawyer any pertinent questions about the document before adding their signature in front of a public notary. This is because there is no opportunity to alter this document once it has been signed and sent back to the defense attorney.

The Settlement Check

A settlement check is sent directly to the client’s lawyer, not the client or their insurance company. Again, this can take a couple of years to actually receive in the mail, depending on the amount of appeals and the productivity of the appellate court. This check generally will have the names of both the client and the attorney. This means it will need to be endorsed by the client before it can be deposited into their lawyer’s client-trust account. Once in this account, the lawyer will deduct their share of the settlement, which should have been negotiated at the time of hire. Another check will be issued by the law firm to the client of the remaining settlement amount.

Clients should ask their attorneys for a copy of the settlement check, or all checks totaling the settlement amount, sent by the insurance company, as well as, a financial breakdown sheet of the settlement, BEFORE the check is deposited into an attorney client trust account. This is the lawful right of every personal injury client.

Craven, Hoover, and Blazek P.C.

Craven Hoover Blazek Personal Injury Law

Craven Hoover Blazek Personal Injury Law 317-881-2700

Call Craven, Hoover, and Blazek P.C. at 317-881-2700 and speak with a personal injury lawyer in Indianapolis about filing an accident claim, today. Lawyers, Daniel Craven, Ralph Hoover, and Keith Blazek are highly accomplished, seasoned accident attorneys with extensive trial and litigation experience. Our law firm offers free initial consultations and never collects lawyer fees unless we win your case. Call 317-881-2700 to file a personal injury claim in Indianapolis, IN today.