So you just were awarded compensation from a lawsuit or you just won the lottery - how do you get paid? In some cases you will receive a check for the amount awarded, but not always. Sometimes the courts or the lottery commission can choose to payout in a structured settlement. What is this?
A structured settlement is a payment stream resulting from compensation from a lawsuit, winning the lottery, or selling a mortgage note. The party receiving the payment stream has the guaranteed income over the life of the investment or award. There are good points and bad points to this.
One good thing is that you will have steady income for a long time to come. Some structured settlements last for 20 or 30 years. This will provide income for you and your family on a regular basis. It is also a way to keep the recipient of the award from spending all of his or her money right away.
On the other hand, a payment stream may not be a strong enough instrument to be able to get a loan for something you need right now, such as a home. Sometimes a large down payment is needed to get financing. In addition, the payment stays the same as inflation increases over the years. That makes the payments received 10, 20 or even 30 years down the road less valuable than the payments received today.
If you need a lump sum instead of a payment stream, there is hope. There are companies out there that will buy your structured settlement for cash. The process is a legal process that can take up to 10 weeks to complete, but you can have you money now instead of receiving payments over many years.
See Also : personal injury solicitors
