Selling Structured Settlements- How It Works

Shay Morrigan | November 24th, 2012

If you successfully pursued a worker’s compensation or other personal injury claim and were awarded compensation by a jury, you may now be receiving regular payments on what are called a “structured settlements.” The payments may be satisfactory for a time, but what if you come up against a financial emergency? What if your child is ready to go to college, you lose your home in a natural disaster, or someone in the family is facing a serious illness?

That settlement money is yours, which means if you need more money at one time than you’re receiving in payments, theoretically you should be able to get it. That’s where “selling” your structured settlement can come in handy. Here’s how it works.

Structured settlement funding

Back when you first heard the news that your case had been won, and that you would be receiving compensation, you may have talked to your lawyer about the best way to receive the funds. Sometimes plaintiffs take the settlement in a lump sum. However, this option can present certain pitfalls that plaintiffs did not consider at the time the offer was made.

Parties offer and accept structured settlements for many reasons. First, it guarantees plaintiffs a source of income for life, or at least for many years. Second, the payments may be subject to lower tax rates. Third, a structured settlement protects you from the temptation to spend all the money at once, making it easier to make smart money-management decisions. This option is also especially useful for minors, as the money can be held until adulthood.

Plaintiffs can also negotiate the terms of the structured settlement, establishing a payout schedule that works with their anticipated needs. Sometimes, however, things come up that no one could have predicted.

Selling a structured settlement

Structured settlement payments may be ideal for a time. But an unexpected financial emergency, such as a health crisis, can turn things around in a hurry.

When things like this happen, you can actuall sell structured settlement funds. In its simplest terms, selling a structured settlement means exchanging your regular payments for a lump sum. You can do this either with your entire settlement, or only part of it—it’s up to you.

Because of the way a structured settlement is set up, the money is not all there when you may need it. In other words, the entity sending you the payments likely invested a much lower amount than the entire settlement, then let that money accrue interest over the years to support the payments to you over time.

Lawsuit funding companies like LawStreet Capital that has access to the cash you need. If you are approved, we provide you a lump sum of cash, and in return, “buy” the rights to the settlement.

Apply to sell structured settlement funds today

If you’re facing an immediate financial emergency, LawStreet Capital gives you a simple, straightforward option to receive a cash payout for your post lawsuit settlment. It costs you nothing to fill out the application, there is no credit check required, and you will know if you are approved within 24 hours. You need not worry about fees or interest payments. All up-front fees and legal costs are paid by the funding source.

There’s no reason for you and your family to face financial hardship. Call toll-free 800-345-8500.