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Reselling Structured Settlements

Reselling Structured SettlementsIn these difficult economic times, people are looking for just about any financial relief they can get. When you look at various options, be sure to research carefully and thoroughly. Read the fine print. Make sure what you are doing is:

  1. Legal
  2. Ethical
  3. Clear

The past few years I’ve been hearing and seeing advertisements from companies who want to purchase “structured settlements” for cash. This is sometimes an attractive offer for those experiencing financial hardship.

A structured settlement occurs when a personal injury case is resolved by the defendant agreeing to pay the claimant a set amount for a set period of time. For example, if someone sues a driver for injury resulting from a traffic accident, the injured party might accept $100 per month for ten years of structured settlement payments.

Sometimes people who receive these payments would prefer to get a lump sum cash payment, than to have their settlement sent a bit at a time. Enter: structured settlement buyout companies.

Why would someone buy a structured settlement from a claimant? Because they get it at a discount. In other words, the payment amount of the lump sum payment given to the claimant is less than the total payouts β€” with consideration for interest, etc. It’s an accounting present value vs. future value calculation.

There’s nothing wrong with a structured settlement that is made legally. And there’s nothing wrong with buying a settlement from someone else. It’s a completely arms length transaction to offer someone an amount they agree to in exchange for payments over a long period of time.

When entering into such a transaction, however, do your due diligence. Β It’s up to you to know what you’re getting into, what you’re agreeing to, what your obligations and benefits are. A read a letter written from a claimant complaining about Stone Street Capital, for example. From his letter it would seem the root of his problem came from having no idea what he was doing. His grammar is horrendous (many of the mistakes aren’t even noted in the quoted material). But I tend to be more than a little suspicious of someone who has received enough personal structured settlements to consider himself an expert on reselling them. Does he make his living chasing his own ambulances?

In any event, as with any contract, take responsibility. If you choose to sell a structured settlement, make sure you do your own research to get what you think is fair.

{ 20 comments… add one }
  • Henry G. March 6, 2012, 12:38 pm

    I’ve seen a lot of these commercials lately and wondered if they were screwing people over or if they were actually legit. I can see how an upfront payment would help those who need it now, but I wonder how steep of discount do they normally expect?
    Henry G. recently posted…Throw Away Those Glasses & Fix Your Eyes Naturally!My Profile

  • Henry G. March 6, 2012, 12:38 pm

    I’ve seen a lot of these commercials lately and wondered if they were screwing people over or if they were actually legit. I can see how an upfront payment would help those who need it now, but I wonder how steep of discount do they normally expect?
    Henry G. recently posted…Throw Away Those Glasses & Fix Your Eyes Naturally!My Profile

  • Alison Moore Smith March 6, 2012, 12:44 pm

    I’m sure it varies. But, honestly, I don’t think it matters at all. If you don’t like the discount, don’t take it! πŸ™‚

  • Alison Moore Smith March 6, 2012, 12:44 pm

    I’m sure it varies. But, honestly, I don’t think it matters at all. If you don’t like the discount, don’t take it! πŸ™‚

  • Mae March 9, 2012, 10:25 pm

    This is such an informative piece. Before having a transaction we must be familiar of the possible result of any course of actions that we will be taking especially if it pertains to money and payments.

  • Mae March 9, 2012, 10:25 pm

    This is such an informative piece. Before having a transaction we must be familiar of the possible result of any course of actions that we will be taking especially if it pertains to money and payments.

  • Joy March 9, 2012, 10:49 pm

    “Structured Settlements” – my first time to hear about this. Wouldn’t this cause problem with the one paying the settlement?

  • Joy March 9, 2012, 10:49 pm

    “Structured Settlements” – my first time to hear about this. Wouldn’t this cause problem with the one paying the settlement?

  • Alison Moore Smith March 14, 2012, 1:51 pm

    No. Because the one who pays continues to pay as ordered by the court. They just pay to the company/person who bought the settlement instead of the plaintiff.

  • Alison Moore Smith March 14, 2012, 1:51 pm

    No. Because the one who pays continues to pay as ordered by the court. They just pay to the company/person who bought the settlement instead of the plaintiff.

  • DiNaRa March 16, 2012, 4:39 am

    It is the first time I hear about it and I am surprised even to know about such a possibility in general as in my country it is considered to be scam i fact and it is very illegal.

  • DiNaRa March 16, 2012, 4:39 am

    It is the first time I hear about it and I am surprised even to know about such a possibility in general as in my country it is considered to be scam i fact and it is very illegal.

  • kai April 2, 2012, 7:46 pm

    Such a nice insight for the individuals who are paying settlements. Hope this could help them understand more about structured settlements . Thanks for sharing.

  • kai April 2, 2012, 7:46 pm

    Such a nice insight for the individuals who are paying settlements. Hope this could help them understand more about structured settlements . Thanks for sharing.

  • AA April 14, 2012, 4:26 am

    This is information presents a reminder to those who settle legal proceeding. Make sure that the transaction is clear to the both party so that there is no bias. Better ask a lawyer for settling this matter.
    AA recently posted…Top 5 Ways to Get Pulled Over By PoliceMy Profile

  • AA April 14, 2012, 4:26 am

    This is information presents a reminder to those who settle legal proceeding. Make sure that the transaction is clear to the both party so that there is no bias. Better ask a lawyer for settling this matter.
    AA recently posted…Top 5 Ways to Get Pulled Over By PoliceMy Profile

  • PIA June 26, 2012, 6:54 pm

    This is my first time to hear structured settlement, may this could be an advantage for others but for some are not. In my own opinion the important thing that must do by both parties they must have a lawyer for a a clear settlement for those who are not familiar with a structured settlement. Thank you for posting your blog now I learned another legal term.
    PIA recently posted…Top Five Common Reasons of Car Accident during Rush HoursMy Profile

  • PIA June 26, 2012, 6:54 pm

    This is my first time to hear structured settlement, may this could be an advantage for others but for some are not. In my own opinion the important thing that must do by both parties they must have a lawyer for a a clear settlement for those who are not familiar with a structured settlement. Thank you for posting your blog now I learned another legal term.
    PIA recently posted…Top Five Common Reasons of Car Accident during Rush HoursMy Profile

  • Mj June 28, 2012, 9:42 pm

    It is a must to be responsible all the time because we are also be the one who will suffer the consequences. I strongly agree with Alison Smith that before doing anything, you should research especially when it comes to contracts and other important documents and also when you can’t apprehend things by yourself.
    Mj recently posted…Evidence MattersMy Profile

  • Mj June 28, 2012, 9:42 pm

    It is a must to be responsible all the time because we are also be the one who will suffer the consequences. I strongly agree with Alison Smith that before doing anything, you should research especially when it comes to contracts and other important documents and also when you can’t apprehend things by yourself.
    Mj recently posted…Evidence MattersMy Profile

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