The History of Structured Settlements
Filed under: Structured Settlements — Structured Settlement Expert @ 9:54 pm
Structured settlements are the result of a personal injury legal case and are financial arrangements wherein the injured party is provided a settlement through a series of periodic payments. A structured settlement is essentially a payment solution that allows for ongoing payments to the injured person .
In 1982 Congress ratified the Periodic Payment Settlement Act. This act created an alternative financial solution in personal injury cases. They allowed those receiving the funds to receive money through periodic payments.
However, there are circumstances in which the recipients of structured settlement payments feel trapped by their payments, especially in the face of extenuating financial circumstances that require a lump sum of money.
In such cases, recipients may choose to forgo the ongoing periodic payments and instead sell all or part of their future structured settlement payments. The purchasing company will, in turn, provide the recipient with the lump sum of money that they require.
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