Lump Sum Structured Settlement Overview
You may have been injured and a lawsuit was granted in your favor. One scenario is as follows. For the next 30 years you could be receiving steady monthly payments that increase every year by 3% this is called a structured settlement from a lawsuit or personal injury settlement. If you are getting say $700 a month for next 30 years or 360 months this comes out to $252,000.00 there are other options to this settlement. These $700 a month payments seemed great in the start but now you need more money, lots more. You can get more money from your settlement read more to see how. You may have received the first 5 years of the 30 and now you are wondering if there are ways to sell or get more cash from your settlement. Some problems with this are that you cannot borrow against it, nor use it as collateral. What is permitted is an option outlined by law to sell some or all your future payments in exchange for a lump sum. A court order must be obtained to allow a lump sum for structured settlements.
Get a Lump Sum of Cash For a Structured Settlement.
Now because of rising expenses and a need for cash the desire may be a lump sum. Structured settlements have advantages and disadvantages when thinking about keeping them or holding on to them. Lump sums of cash as approved by a court order can be used for many of the following:
- Down payment on a new home
- Get out of debt that you are drowning in
- Pay off credit card bills
- Pay medical related bills and services
- Buy a new device or equipment that would help your disability
- Pay piled up business expenses or fund a business
- Education tuition and school bills
- New car or payoff of a car
- Home improvements that are desperately needed, such as a new roof
The final decision will ultimately be the judge that is looking at your request. Most requests are approved, but it is not guaranteed that all cash transfers will be approved. There are some items in the settlement that may not allow for the sale of future payments, there may be a non assignment clause, an age to sell clause or other type of restriction. In any case when you need a lump sum from your structured settlement there are ways to do this and it is fairly common now to get cash from your future payments. Find a present value calculator on the web and see what your future payments are worth today. This will help you get a ruff estimate of what the future payments are worth. The settlement funding companies will have their own risk rates for present value.
Use the calculator to see what the ballpark amount would be. When researching to find a good buyer one way to select is to contact the national better business bureau by phone or their web site to see if they have a low amount of complaints. Now you are ready to get a lump sum of cash for your structured settlement. Get the process started now.