Cash for Structured Settlement Payments through the Sale of Partial Payments
- This was posted on April 25, 2008
In the event that one is involved in an injury case that goes to court – or a wrongful death case for that matter – the case may result in the assignment of a certain amount of money to the claimant. However, while it was once standard for the claimant to receive the entirety of their money at once, today it is much more common for the claimant to receive – or choose to receive – a structured settlement. With a structured settlement the recipient receives their money through payments rather than all at once – through an annuity that has been purchased for this purpose. Initially claimants may choose this method of payment because it helps them to budget the money they are to receive, and also because when all is said and done they will ultimately receive more money through payments than they would with a lump sum amount.
However, as circumstances change, the recipient of the annuity payments may find that they are in need of a lump sum of money for a particular purpose – having found themselves out of work, the accumulation of medical bills, significant debt, college expenses, and so forth. Under these circumstances the recipient may choose to sell annuity payments to a reputable buyer in order to have the cash they need to meet their obligations.
A buyer of structured settlement annuity payments – a purchasing company that specializes in this kind of transaction – will turn over a lump sum cash payment to a seller in return for the right to receive annuity payments.
To sell annuity payments, however, does not necessarily require the sale of all of the payments. Sellers can offer for sale just a portion of their future payments – enough to cover their immediate financial needs.
Cash for structured settlement payments can be arranged in a number of ways to serve several purposes, but it does not have to be an all or nothing proposition.
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