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Should You Accept a Lump Sum or Structured Settlement for Injury in Chicago?

If you decide to forgo a trial in favor of a settlement, you might have a couple of options for how you receive payment. Lump sums and structured settlements can be helpful, but they also have certain drawbacks.

Whether or not it is a good idea to accept a lump sum versus a structured settlement is entirely up to you. You should pick the option that best fulfills your needs, whatever they might be. Each possible settlement option has advantages and disadvantages that you should weigh with an attorney. Alternatively, our lawyers can help you reject a settlement to get greater compensation through a trial. Although lump sums and structured settlements can get you some money without needing to go through a trial, a trial often gets you far more money and might provide you with compensation that matches the true worth of your case.

Lump sums and structured settlements should only be considered if they adequately meet your needs after an injury or accident. Otherwise, our Chicago personal injury lawyers are ready and able to represent you in a trial. Call the Rhatigan Law Offices at (312) 578-8502 for a free case review.

Is it a Good Idea to Accept a Lump Sump or Structured Settlement in a Chicago Injury Case?

It is difficult to say whether a lump sum or structured settlement is the better legal option without first talking to an attorney about your case. While each settlement option has pros and cons, you should only pick one if it fulfills your needs and covers your damages.

Generally, the upside to settlements is that they help plaintiffs get at least some of their damages covered, and both parties might save money on legal fees. If you decide to accept a settlement, you might have the option of taking a lump sum or agreeing to a structured settlement. An attorney can help you decide which option you should consider.

Accepting a settlement is not always the smartest idea in injury cases. If you have strong evidence to back up your claims, you might be shortchanging yourself by accepting a settlement. Our Illinois personal injury attorneys can help you use this evidence to prove the defendant’s negligence and court and get the full extent of your damages compensated.

Accepting a Structured Settlement or a Lump Sum for an Injury Case in Chicago

Depending on your case and your financial needs, lump sums and structured settlements offer certain advantages. However, you should consider several key disadvantages before making a decision. Remember, you do not have to accept a settlement offer. Our Joilet personal injury attorneys can represent you in a trial and fight for all the compensation you need and deserve.

Advantages

Perhaps the primary advantage of a lump sum is that you often get more money right away. Lump sums are made in a large, one-time payment, providing plaintiffs with an immediate sum of money. This is great for plaintiffs who have immediate needs or expenses they need to take care of. For example, you might have no savings after dealing with your injuries and costs from the accident, and you might be unable to return to work to earn an income. A lump sum might give you the financial safety net you need to get back on your feet.

A lump sum also gives you more liquid assets to work with. You might decide to pay off all your expenses and save whatever is left over. Alternatively, you could invest the money and grow it into something more, paying off your debts from the accident over time.

Structured settlements tend to be worth more overall compared to lump sums, but they are paid over time rather than in one large payment. Often, defendants pay a structured settlement because the settlement is so large that they cannot afford a lump sum. In addition, regular settlement checks help provide a sense of financial stability, as you always know when the next check is coming.

Disadvantages

Although a lump sum gets plaintiffs a larger, one-time payment, it is often somewhat smaller than what your settlement is truly worth. Many defendants pay a lump sum because they cannot afford to pay for the full extent of their damages. Accepting a lump sum means you get whatever you can now, even if it is less than what you deserve.

Getting a large amount of money up front might seem great, but that money might have to stretch to cover all your expenses and needs, especially if the settlement is smaller than you would have liked.

Structured settlements might not come with a large immediate payment, and surviving on smaller checks over time might be difficult, especially if you are too injured to work. Not only that, but if the defendant goes bankrupt later, your settlement might be at risk. Rather than accept a risky settlement, our Naperville personal injury lawyers can help you fight for full compensation in court.

Pursuing a Trial Instead of Accepting a Settlement in a Chicago Injury Case

Settling can be helpful in some cases, but in many others, a settlement only serves to rip off injured plaintiffs. Settlements are often worth less than the total value of your claimed damages. For example, you might claim $50,000 in damages, but a settlement might only be worth $30,000. While a settlement helps plaintiffs get compensation without going through a trial, a lot of money is often left on the table.

You should take your case to court to get the full value of your damages. Our Rockford personal injury attorneys can help you prove the defendant’s negligent behavior caused your injuries, and the court might award you a much greater damages award. In most cases, a lawsuit is already in the works when the parties negotiate a settlement. If you have strong evidence to use as leverage in a settlement, you might have favorable odds in a trial.

Contact Our Chicago Personal Injury Attorneys for Help

Your injuries might be severe, your expenses high, and your bank account low. Accepting a settlement might be tempting, but pursuing a trial can get you the compensation you truly deserve. For a free case review, call the Rhatigan Law Offices at (312) 578-8502 for a free case review.