Do you need to file a lawsuit but would rather avoid going to court? Have you been sued and want to handle the matter without going to court?
Then you need to know the answer to the following question — what is a settlement? This refers to a legal proceeding outside of the purview of a court.
It is an agreement that both parties decide upon. It helps save time, money, and is often the most civil method for resolving conflict.
So how does a settlement work? Is a settlement a good option for your conflict?
Here’s what you need to know:
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Qualified Assignee
The plaintiff has to inform their attorney that they wish to offer a court settlement to the defendant. This type of attorney is known as a qualified assignee.
The qualified assignee’s responsibility is to research how to get funding for the structured settlement.
Depending on your claim, there will be different funding options for your settlement. For example, you can learn more here about settlement funding for illnesses.
The qualified assignee will then prepare the settlement plan. They’ll then inform the defendant about the settlement and negotiate with them.
Outline of the Settlement Process
Now let’s look at the full outline of the process of agreeing upon a settlement.
- The defendant has responded to a lawsuit from the plaintiff
- The qualified assignee offers the option for a settlement instead of going to court
- Both plaintiffs and defendants will then decide on the best financial amount to settle upon
- The qualified assignee will sign up for a life insurance plan which provides payments to the plaintiff
The settlement process is straightforward and is far more preferable to going to court. The only thing that might take time is negotiating the financial amount for the settlement.
The plaintiff will have to justify the financial amount. They’ll have to explain why this amount is sufficient for their illness or injury. They’ll likely have to defend why the amount isn’t extravagant or unreasonable.
Life Insurance
A final step that the plaintiff should know about is choosing their life insurance plan.
You want to choose a life insurance plan with a great reputation. If the life insurance company goes bankrupt, you might not receive your full settlement.
You also want to ask about how long the settlement lasts. For example, let’s suppose you’re granted $10 Million. Within how many years do you expect this amount to get paid in full?
You also want to decide how often you’ll get paid and the amount of each payment. These are all factors to consider before you choose your life insurance plan for your settlement.
Now You Know What Is a Settlement
Now that you know what is a settlement, you can decide if it works for your situation.
Make sure you assess whether it’s best to opt for a settlement or go to court. You also want to make sure you find the best-qualified assignee to help you with the process.
Take your time with the research on different life insurance plans. Work with your qualified assignee to help negotiate the terms with the defendant.
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