The Legality of Selling Structured Settlements
Filed under: Structured Settlements — Structured Settlement Expert @ 4:23 pm
When a personal injury case ensues following an accident and injury, often the case is settled out of court and the claimant is given a financial settlement. The claimant may be given all of their settlement money at once, or sometimes a claimant will be given a structured settlement.
A structured settlement is a payment arrangement that defines the schedule over which the claimant will be given their money. So rather than the claimant receiving a one-time settlement payment, they are sent payments until the entirety of the structured settlement has been reached.
Should the recipient desire a lump sum of money down the road, however, they may begin to explore the possibility of selling all or part of their future structured settlement payments. However, they may also be hesitant as to the legality of such a sale.
The reality is that there is a legal mechanism that allows for the sale of structured. Purchasing companies will make a deal based on the current market value of the structured settlement – taking ownership of future structured settlement payments in exchange for a lump sum of money now.
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