What Is The Difference Between A Formal Lawsuit And An Informal Settlement?Share
Settling a car accident case is not always the easiest and fastest event in life, especially when the accident caused major, lifelong injuries. If you are ready to pursue settling your case, you should understand that there are two main methods to do this. The first is through a formal lawsuit, and the second method involves an informal settlement. Here are the differences in these two options.
Formal lawsuits involve the court
Using a formal lawsuit will always involve the court in your area, whereas an informal settlement is a method that offers a way to settle outside of the court. With an informal settlement, your attorney works with the other person's attorney or insurance company, and together they reach an agreement that both parties consider fair and reasonable.
If you proceed with a formal lawsuit, the court handling the case will hear the evidence presented and will decide how to proceed with the case. The court will basically determine, from the evidence, if you win or lose your case. The court will also determine the value of your settlement, and this too is based on the evidence your lawyer offers to the court.
An informal settlement is faster
If you are looking for a fast method for settling your case and receiving your settlement proceeds, you will probably want to consider using an informal settlement rather than a formal lawsuit. Going through the court with a formal lawsuit takes time. Courts are busy places, and things must be handled a certain way according to the laws in your state. If you are not in a hurry for your money and feel that you would receive more through a formal lawsuit, this might be the better route to take.
Both offer ways to settle a car accident case
The one thing both methods have in common is they both offer the ability to settle a car accident case. You can settle any car accident case with either of these methods, but one option might be better for your situation. You should not decide which option to use without consulting with a personal injury lawyer first. Your lawyer will listen to your case, review the evidence, and determine which is the better option for your situation.
If you want to pursue a settlement for the injuries you incurred from a car accident, talk to a personal injury lawyer to find out which of these options would be right for your case.