Walking Through the Process of a Structured Settlement Sale
Filed under: Structured Settlements — Structured Settlement Expert @ 9:48 am
A structured settlement is merely a fancy title for a relatively simple financial arrangement which results from a personal injury case. When a case is settled out of court and a financial understanding has been reached the claimant is sometimes given a structured settlement in lieu of being given the entirety of their settlement at once. So instead paying out the award in cash, arrangements are made for the money to be given to the recipient in payments over time.
From then on – through the term of the structured settlement – the recipient is sent scheduled payments from a third party annuity that has been created for this specific purpose. On the other end, the party responsible for paying out this money is charged with funding the annuity.
This structured settlement arrangement is designed to work and to benefit all parties involved. But the courts can’t account for everything; and there may be instances when the structured settlement recipient would benefit from a lump sum of money in lieu of their payments, such as in the case of financial hardships, significant debt, and education expenses.
If approved by the courts, the structured settlement recipient may sell all or part of their future structured settlement payments in exchange for a lump sum of cash. The purchasing company will make an offer to buy the structured settlement. But the other responsibility of a reputable purchasing company is to walk their client through the sale process so that they are aware of what to expect.
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