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What is a structured settlement?

 

A: A payment of a settlement in installments over a period of time.

Ordinarily, when you settle a lawsuit or win a judgment, the defendant pays you in one lump sum. In certain circumstances, though, it makes more sense to have a settlement paid in installments over time. For example, where there has been a catastrophic injury and there will be a need to pay for future medical expenses, a structure settlement may make more sense.


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