Why legislation allows for the sale of Structured Settlements?
Filed under: Structured Settlements — Structured Settlements Pro @ 11:19 am
This post will discuss the reasons why states passed the legislation to allow the sale of structured settlements.
The primary reasons states were petition to enable this legislation is the fact that in some cases a families best interest were no longer being served by their settlement payments. In the majority of the cases structured settlements are set up to help the recipient to manage their money over time and enable them to pay their financial obligations on a regular basis. This is particularly true when the injured party is no longer able to work and generate steady income.
However, sometimes circumstances change creating new and different priorities that may require a more immediate need for cash. This is where structured settlements are inflexible and don’t allow the recipient to switch their original settlement from a structured to a lump sum settlement within the framework of the original agreement.
States passed legislation to allow those receiving settlement payments and in financial need to cash in their future payments. This was the birth of a new industry with companies guiding recipients through the process and converting their future payments into cash.
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