A structured settlement in Oklahoma is an agreement between a plaintiff and a defendant that the plaintiff will settle her Tulsa personal injury claim in a series of many payments over a long period of time rather than in one big payment at one time.
The plaintiff will usually receive a larger total amount from the multiple payments in a structured settlement in Oklahoma that she would from one large settlement payment.
FAQ: A Structured Settlement in Oklahoma
Structured settlements allow a plaintiff to manage her settlement monies more responsibly since she receives smaller amounts in scheduled increments.
There are often tax-free advantages to a structured settlement in Oklahoma.
As mentioned previously, a plaintiff choosing a structured settlement often receives more money in the long-run than she would by agreeing to a settlement in one lump sum.
So Why Shouldn’t I Cash Out My Structured Settlement?
For one, cashing out a structured settlement in Oklahoma will cost you surrender charges of up to 10 percent of the value of your settlement. Basically, it is the equivalent of selling a portion of your settlement to have faster access to your money.
Secondly, liquidating a structured settlement is a sophisticated financial and legal transaction that requires court approval. It can be a lengthy process.
The judge has discretion whether to allow you to cash out your settlement. He or she will want to know your reason for seeking liquidation and the discount rate amount.
Judges will tend to disfavor reasons for liquidation unless they are signaled by a major life change such as:
- purchasing a new home,
- saving an existing home from foreclosure,
- starting a business,
- paying for education expenses,
- resolving a debt, or
- paying for a necessary medical procedure.
Before you call the number listed on a television or internet advertisement to cash out your structured settlement in Oklahoma, talk to a Tulsa personal injury lawyer.
Free Consultation: Tulsa Personal Injury Attorney
To find out if cashing out a structured settlement in Oklahoma is the best course of action for you, contact the Personal Injury Law Office of Tulsa today.
For a free, no-obligation consultation, call (918) 924-5528 or send your question using the email form on this page.
