Pittsburgh, PA -- (SBWIRE) -- 01/04/2013 -- The popularity of structured settlement has reached new heights in the United States along with various other parts of the world. These types of settlements generally take place when a party places financial burden, medical or serious injury on some other party. The injured party places lawsuit against the guilty party to get financial compensation or peace of mind. Settlements like these are most common in case of medical malpractices as well as personal injury cases like on job injuries or vehicle accidents. Usually there is an upfront payment followed by a series of small payments over a certain period of time decided by the party who owes the money and the injured party.
Majority of people benefit a lot through structured settlement as it guarantees to offer them some kind of financial help every month or year till the time the money is paid in full. Such types of arrangements do not work for everybody as different people have different opinions and views. But structured settlement proves beneficial for many people as it serves as a guaranteed income source. One of the significant benefits of this settlement is that it helps in reducing the tax burden. Even though somebody may owe money but the government requires one to pay the taxes for the money earned. If the injured party gets a large sum of money then the tax associated with it automatically increase. However, when the money is paid in small amounts, the taxes which need to be paid, lowers down significantly.
The process of structured settlement is advantageous for people who have a tendency to spend money irresponsibly. Instead of getting a lump sum amount they receive small amounts at a time which definitely helps with the finances. Apart from that there are different cases where the guilty party is not capable enough to cover the entire amount at once. In those cases, the structured settlement definitely proves as a good option. Sometimes it is good to settle for the money owed rather than aiming for the lump sum amount which is not available with the other party.
Like several other legal procedures, structured settlement too comes with its drawbacks. One of the noteworthy drawbacks of this settlement is that after signing the contract, a person is legally bound and changes cannot be made to the terms of the agreement. Therefore, it is always a good idea to hire some stellar attorney who can help with the entire process of structured settlement. It can also happen that the owing party may pass away in between before making the full payment. So a professional needs to be consulted to make sure that every minute detail of the agreement is taken into consideration.
About Structured Settlement Trend
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