Selling a Structured Settlement
Those who receive periodic structured settlement payments do so in accordance with terms agreed upon by both parties. Injured parties often receive a structured settlement that pays them in ongoing periodic payments instead on one large payout.
When a structured settlement receives an annuity, it is set up through a third party. Going forward, the structured settlement recipient receives recurring payments from the annuity for the life of the settlement terms.
There are times when the recipient needs may change requiring a lump sum of cash rather than having to wait for their periodic payments. Such circumstances may include the need to pay down significant debt or pay for large expenses such as an education.
In these cases of financial need, the courts may approve a structured settlement recipient selling all or part of their future payments. The recipient can turn to a company that will purchase their structured settlement and their future payments in exchange for a lump sum cash payment.
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