Deciding to Sell a Structured Settlement
Filed under: Structured Settlements — Structured Settlement Expert @ 5:46 pm
Structured settlements are designed to meet the ongoing financial needs of those who settle a personal injury case. When most people think of financial settlements in connection with a court case of this type, they may assume that the claimant is written a large check for their total award. Yet, this is often not the case; rather in many cases, the recipient is given a structured settlement, whereby the total amount of their settlement is divided into payments. The recipient then receives these payments periodically through an annuity that is set up to make the payments.
Ultimately, a structured settlement is designed to avoid dealing with a lump sum of money — the recipient is able to budget their payments to meet their ongoing financial needs. However, because of changing financial circumstances, there may come a time when the structured settlement recipient may consider selling all – or some – of their future payments.
Deciding to sell structured settlement payments is completely dependent upon the recipient’s current needs. They may be dealing with significant debt, or facing large medical bills, or even struggling with the threat of foreclosure on their home. In such cases, the sale of future structured settlement payments in exchange for a large sum of money that can meet these needs may be advisable.
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