If you are a victim of personal injury and are looking for a settlement, then structured settlements are the way to go. In a structured settlement, you would receive part of your compensation in periodic payments. This compensation would arise as part of the lawsuit you have won. You can claim payment of money with respect to a personal injury lawsuit. During negotiations, you being the plaintiff can either request for a structured settlement or you will be offered one by the defendant. Structured settlements seek to avoid unnecessary expenditure of money by not going to trial. In certain cases, albeit requiring the fulfillment of certain conditions, you as a claimant would not owe any Federal Income Tax on the money received. These periodical payments may be funded by the purchase of annuities which have been paid in full for the life of the payment stream and insured.

Why Should You Sell Your Structured Settlement

Once you become a victim of personal injury and win a lawsuit for a structured settlement from the defendant you elect to receive part of your settlement immediately. The rest of the settlement can be paid off in a series of structured, periodic payments that can be customized according to your needs in respect to the amount and time of payments. However the companies who insure your settlements must comply with Internal Revenue Code 130 of the United States which does not allow for any modification with respect to the schedule of payments. You cannot get the payments due to you earlier that what was negotiated and agreed upon.

structured settlement cash

As always there is a loophole to this law as well as selling structured settlements is becoming more and more popular these days. People may sell their settlements for various reasons mainly being the requirement of a lump sum of money. This sale of a settlement may mostly be used to pay off a debt or to help pay for college tuition of their child/children. This sale of a structured settlement payment rights is called structured settlement factoring transaction. There are certain purchasers of structures settlements mostly companies which buy part or all of a settlement from a person and pay them a lump sum of money which is not equal to the remaining amount of settlement. Most people however do not sell their structured settlements because they require and depend upon this periodic influx of money to run their households.

How to choose the right structured settlement factoring company

Certain individuals do not depend upon the future periodic payments offered by the structured settlements. Others may require a sudden influx of cash. They decide to sell their structured settlement payment rights and have to choose a structured settlement factoring company. These companies draw up an agreement and buy off the settlement. Then they offer a lump sum of cash to the individual. However any sale of this sort will require approval by a court judge for compliance to local rules.

Choosing the right company to sell your structured settlements is very important. Do not sell your payment rights to companies that make you sell but does not listen to your queries or concerns. Some companies who are leaders in this field talk to you about the benefits and disadvantages and help you make a decision. Here are some companies who are at the top of their field:

  1. JG Wentworth: This company is one of the top firms in this field and they offer some unique options. They help you in getting payment as soon as possible and even help in getting pre-settlement funding so that you have adequate money till your case is settled. They also help customers in selling their annuity payments in part for unforeseen expenditures.
  2. Olive Branch Funding: This company has a unique understanding of the future payment purchasing industry and can respond to your needs better. They pride themselves on being a customer friendly company. The customers can take advantage of the company’s help and talk with their representatives.
  3. Seneca One: Having a personalized approach to its customers needs is the strong point of this company. They build an understanding of the customers’ problems one at a time with representatives who talk to each customer. They also have a BBBA+ rating that shows that they excel in customer service.

This article will help you decide what to do with your structured settlements if you have any and what to look for in companies that offer to buy your payment rights.