Whenever there is a case where a plaintiff sues a defendant for a lot of money, some legal agreement must be worked out. The problems could arise as a work related problem where someone got injured on the job, or it could be a personal matter but either way the plaintiff must get their money somehow. When the plaintiff demands a large amount in a trial, the defendant is then responsible for these payments. If the defendant cannot afford to pay the amount in its entirety, then a structured settlement can be agreed upon. Structured settlements allow the defendant to get the money to the plaintiff in chunks; these portions are determined by the court.

As for a few examples, let us say that someone gets hurt while they are at work and they sue the company. The company would then have to pay for any expenses that that person would have. If they cannot return to work, they must compensate them for that and help them by giving them money for their everyday needs such as rent and food. An advantage to these smaller payments is that there is not as much tax because the money is distributed over time. The tax is still technically the same, but it is spread out more and easier to manage; there could also be more exemptions due to the circumstances.

Although, there are advantages to this system such as getting paid little by little so that you do not run out of finances, there are also a few disadvantages. Some people who sue want to get the money right away but at times that is just not possible. This all depends on the financial situation of the person who is being sued. Some people do better getting paycheck by paycheck but others would prefer to take a lump amount. It just depends on if you are responsible enough to make that money last because when it is gone, it is gone.

The main point of these agreements is to help the plaintiff. Usually these agreements are made between someone who was hurt on a job and someone who is sick due to something that was not their fault. These agreements are made strictly to help the plaintiff and also allow the defendant to be able to pay. There are many advantages to this because it gives someone who has been hurt a chance to get a steady income. It helps them with tax deductions and it guarantees them an income.

There are always ups and downs to everything. It is a great idea, but it still leaves that plaintiff in a tough spot. When they cannot go back to work because of an injury that has occurred, it leaves them alone and dependent on the defendant. If you are someone who was hurt on the job and can no longer work, you should make sure that you are getting what you deserve because it is your right to get paid when someone or something takes away your ability to work for your own income.

Author Bio: Stewart Wrighter recently researched a landmarkstructured settlement case for an article. He learned that structured settlements are the best alternative in some cases.

Category: Finances
Keywords: structured settlement,structured settlements