Selling Structured Settlements
A settlement results in a long-term payment obligation on part of the defendant in exchange of dismissing the lawsuit. The payments made are either monthly or yearly, depending on the contract or agreement between the involved parties.An important point regarding structured settlements is that they can be easily sold to fulfill an immediate financial need. These settlements are a very useful means of gaining huge amounts of tax-free money without any hassle.
Therefore, whenever a situation like arranging money for the college education or paying for the medical bills arises, people start considering selling structured settlements. However, prior to the sale of a settlement, it is necessary to gain the approval of the court.
Attaining court approval in this regard is not a problem because the sale of structured Majority of the states include a Structured Settlement Protection Act that highlights some of the requirements that need to be fulfilled while selling a structured settlement. Some requirements include the following.
(1) the decision is based on whether the sale will prove to be useful for the receiver of the structured settlements. The seller is required to provide details such as the reason for the sale, the applicable discount rate, as well as other sources of income of the seller.
(2) It is essential for the purchasing company to disclose all the financial conditions stipulated at the time of the sale of the settlement.
Selling structured settlements is a very useful means of collecting the desired amounts of money to fulfill an immediate monetary need. However, it is best to find a competent and trustworthy individual to sell your structured settlement.
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