Auto accident settlements occur when involved parties agree on an amount to cover property damage and injuries. The agreement can be reached before trial, or at any time after the trial starts. Settlements are contracts that state the responsible party will pay a set amount to make up for losses suffered by the victim. In many cases, a settlement is a favorable outcome because it saves both sides money and time. Read further to learn how an attorney’s Exceptional legal services can help a client get a fair settlement.
Payouts for Auto Accident Settlements
Funds from car accident settlements are distributed in one of two ways: through structured settlements or lump sums. A structured settlement is payments made at regular intervals; this option can help a plaintiff avoid the tax ramifications of receiving a large initial payout. Lump sums allow the person to get all of the settlement at one time, but there are major tax consequences to consider.
If the Other Person Won’t Pay
One of the main disadvantages to structured settlements is that the responsible party may stop making the scheduled payments. Stoppages can occur due to bankruptcy, but they more commonly occur when one simply refuses to pay. Therefore, some choose the lump sum option to protect themselves from future problems. If a defendant cannot make a payment in a lump sum, courts sometimes take other measures. For example, the person’s property can be seized and sold to make the payments.
Does an Accident Victim Need an Attorney’s Help With a Car Accident Settlement Payout?
During the aftermath of a car accident, victims have many decisions to make. However, the choice of accepting an annuity or a lump sum payout can be one of the most difficult. A person may want to schedule a Free Phone Consultation with an attorney if they need legal advice on a car accident settlement payout. A lawyer can help the client in the courtroom, and they can ensure that the client’s rights are fully protected. Laws on accident settlements are complex and vary by location, and an attorney’s Exceptional legal services can help the client work within state laws to get the settlement they deserve.
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