A structured settlement is a bundle of payments that are given to a person who has won a lawsuit. Contrary to payments that are done in full, structured settlements are paid over time. If you have won a lawsuit, you can sell your structured settlement to factoring companies if you’re looking to get immediate cash.
Unfortunately, you can’t just sell your structured settlement like a bond or a share. To do that, you will need to receive the court’s approval. Then, you will have the authority to either keep or sell your payments. You can receive your payments either in full or in part, it depends on the company that you’re dealing with.
Benefits
From a financial point of view, structured settlements are better than lump-sum payments because they are tax-free. This will save you a ton of money over the course of many years. Imagine receiving a $100,000 payment minus tax and, on the other hand, you get $100,000 over the course of three years, without tax. Which one sounds better? Definitely the second one.
Stable Source of Income
Structured settlements are an amazing source of income. They’re stable, and they can assist you in managing your expenses and budgets. It’s always better to have another stable stream of income. Plus, they might save you when you incur an injury or a medical problem, in which case you might need a hefty sum of cash, and here’s where your structured payments will aid you.
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