A structured settlement is a series of payments made to an injured party as part of a court award. Structured settlements are payable over time and the terms of those payments, which may be two or three, or spread out over twenty years, are dictated by the court system.
But what about when you need the money faster than you are getting it? Is there a way to get the money in a lump sum so that medical bills and other expenses can be paid in full? The answer is, it depends.
There are literally thousands of companies known as settlement funding companies or settlement investors who make it their business to purchase your structured settlement payments for a reduced cash price, or lump sum payment. These companies will work with you to determine the actual value of your settlement, what fees you would be responsible for and help you gain approval from the court to sell your structured settlement payments.
There’s a fee? Absolutely. An investor is in the business of loaning money for a profit, much like your bank does, except the investor is looking for greater returns on his or her investment. There are many complicated financial fundamentals at play when purchasing structured settlements, but the bottom line is, fees can range anywhere from 30% to 50% or more of the overall settlement, which is pretty steep, but is potentially worth it if creditors are calling daily.
Many of these companies are online and will offer you a free quote as far as the money you would be able to expect to receive and the fees associated with the transaction by simply completing a short online form. That form is generally followed up with a brief conversation with a staff member who can discuss options with you so that you can choose the best plan for you.
Be wary of any company that wants to charge you an upfront fee for obtaining a quote. Most reputable companies will earn their money on the back end of the transaction, through receiving your payments. The quote you receive from them should be free. If not, look elsewhere.
For more information or a free quote for a lump sum cash payment on your structured settlement, contact Professional Settlement Buyers