DBA Lump Settlement: Advantages and Disadvantages

DBA Lump Settlement: Advantages and Disadvantages

Jul 17, 2020 | Defense Base Act

You may be entitled to filing a DBA claim when you’ve sustained injuries because of the negligence of other people. If you’ve been awarded a DBA lump settlement as a result of your claim, you’ll need to understand the pros and cons of your settlement.

In this article, we will provide you with the information you need about receiving a lump sum settlement, both positive and negative. Continue reading this article to find out what you need to know.

DBA Lump Settlement: Advantages

One of the best aspects of receiving a lump sum settlement is that once the money has been awarded to you, it can be used however you choose to use it. This means you could use it to pay for any bills that have been acquired due to the injuries that you were caused or paying your attorney fees.

If you don’t want to spend it on any of those things, you don’t have to. It’s your money, and you can spend it the way that you want to spend it. The next lump settlement advantage is that when you’ve got the money, you can use it for the needs that you’ve got currently.

There are some instances when you can opt to receive your settlement in installments rather than receiving it all at once. A reason for receiving your compensation in installments may be to cover expenses that may occur later.

This all relies on your claim being accepted and not denied.

Disadvantages of Lump Payment Settlements

As we said for the positives, there is typically going to be some disadvantages as well. One of the most significant drawbacks is that receiving your settlement money at once means that once you spend it, then it’s gone.

After you’ve spent all the money, there is no way to get more even if you need money in the future because of illness or being out of work. There is an advantage that we didn’t list, and that’s the ability to invest in things that you want to invest in, but on the reverse side of this is your investment not doing as well as you thought it would.

Another disadvantage is that you’ll be tempted to take your money and spend it wisely on things that you don’t need at the present moment. Also, be wary of people that will use you for your money there are some signs to look out for.

Use Your Settlement Wisely

When you’ve received your DBA lump settlement, you must spend the money you’ve been given wisely. If you don’t use your money in the right way, you may find yourself without the financial stability that you need to support yourself in the future.

If you’re looking for someone to represent you in court and assist you in filing your claim, contact our offices. We will put our expertise to work for you and strive to get the outcome that you desire.