Guide
Understanding your offer
An offer is a proposal to resolve your claim for a set amount, usually on stated terms. Before you answer, know what is being offered, what you would give up, and what you would actually receive.
Herdough Settlement Ledger is an independent information provider and is not operated by, endorsed by, or affiliated with any employer, law firm, or funder.
Cash now or payments over time
Some offers pay one lump sum. Others pay part now and the rest in installments over months or years. A dollar that arrives later is worth less than a dollar today, so the two kinds of offer cannot be compared by adding up the totals.
The calculator handles this by showing the present value of future payments at a comparison rate you choose, for example what you could earn on the money elsewhere. That puts both kinds of offer on one footing.
The gross amount is not what you receive
The number in an offer is usually the gross amount. Attorney fees, case expenses, and liens come out of it before you are paid. The guide on gross versus net proceeds explains the order and why it matters.
What you give up
Most settlements require you to sign a release, which means you agree not to pursue the claim further. Read what the release covers, including any claims you have not yet discovered, before you agree.
Questions to ask your attorney
- Is there a deadline for responding to this offer?
- Is the amount stated before or after fees, expenses, and liens?
- Is any part of the offer paid over time, and if so, who guarantees those payments?
- What does the release cover, and are there other conditions, such as confidentiality?
- What do you recommend, and why?