I am receiving periodic payments from my worker’s compensation award. I will continue to receive them for several years. It would be great if I could receive the payments in a lump sum. I have been looking into companies who buy judgments. Can I do this in New Jersey?
No. Under the New Jersey Worker’s Compensation Law worker’s compensation payments must be periodic, which means weekly, and insurance companies must make payments in this manner. In addition, an award of compensation benefits can’t be assigned or attached, which rules out any attempt to “sell” or otherwise assign the award to a funding company. The only way to receive a lump sum when receiving periodic worker’s compensation payments is to formally apply to the Court for what is known as a Commutation. These are not allowed lightly; the Statute only permits commutations is rare cases where unusual circumstances exist.
Al Vitarelli is a Shareholder in Stark & Stark’s Marlton, New Jersey office, specializing in Workers’ Compensation Law. For more information, please contact Mr. Vitarelli.