A structured settlement is a certain amount of money a
person wins in a court case that is being received over a period of time. If a
person successfully sues another person or company in court, he or she will
then be awarded a certain amount of money from the loser. If the amount is too
large for the loser to cover in one lump sum, he or she will have to negotiate
an amount that can be paid over time. Often times, a structured settlement is
the standard way to get paid, as this eases the burden on the loser. Many
plaintiffs also prefer structured settlement so they can count on a set amount
of cash each month or year.
However, the person’s needs may change. Perhaps he or she
realizes that they would rather have a lump sum now. Also, they could go
through other changes like an illness or accident and they need money now to
pay off bills. In many cases, the original settlement agreement will be
difficult to change. That’s why they start looking for a structured settlement buyer.
They can sell their settlement money (for a fee or percentage) to the
structured settlement buyer and get a lump sum. They buyer then has the burden
of waiting for the entire sum to come in and takes on any risks associated with
the settlement agreement. Selling a structured settlement can be easy as there
are many companies out there who would be willing to take the money. However,
it’s best for owners to shop around and find the best deal they can.
