Many civil cases, in particular personal injury and accident cases, never make it to trial since the parties involved reach a settlement agreement earlier-on in the litigation process. Settlement payments may be lump sum or structured (regular pay outs over a specified period of time). Plaintiffs who win-or settle their lawsuit can often opt to take the compensation as a stream of payments over a specified period of time. In cases involving a large money settlement, pay outs may be extended over a specified period of time rather than given as a lump sum. Settlements that employ these extended series of payment schedules are known as structured settlements. A structured settlement is-used by courts in several different case types to supplement or replace income that was lost through someone else’s fault. To execute these periodic payouts, the-defendant will often buy a form of financial product from-an insurance company called an annuity. An annuity will produce a continuous stream of income for the plaintiff over the term of that structured settlement. The compensation awarded to that person can be a great financial security plan for one’s lifetime in the wake of a tragedy. This way, the-defendant can remove your payment obligation from its-books and transfer this responsibility to companies with expertise in-managing periodic payments. Placing the-annuity with an insurance firm is said to be a more-stable alternative compared to relying on-the financial stability and health of defendant corporations.
The process of selling structured settlement
Sometimes, recipient of structured settlements will seek-out a buyer to purchase a portion of-their payments or all of it in-a lump sum. If you’ve a valid reason why you want the cash, this is your only alternative. Structured settlement owners have a right to sell their annuity payments. Structured settlement companies, also sometimes known as factoring companies, then pay the owner a-discounted lump sum in exchange. Selling your structured settlement payments or annuities is a legal process. The process of selling fairly simple and straightforward. It starts with your decision to sell, and then contacting a structured settlement-company for a quote from potential buyers. Once the plaintiff chooses a company to sell to, he will need to accept a contract offer, and supply documentation in order to verify the annuity. The annuity owner will then sign a transfer agreement to start the process of transferring ownership. It can take some time, usually anywhere from 45 to 60 days to complete the entire selling process. If you’re in immediate need-of cash, many structured payments companies offer small cash advances for the sellers. This is particularly useful in times when you need-the money in a hurry for an crucial financial obligation. Your legal representative will then need to set-up a court date, when you’ll appear in court to have a judge sign-off on your transaction. After the court accepts the annuity transfer, the issuer will then receive the transfer order for acknowledgement. The structured payments company will then send you-a lump sum payment, placing a check directly in your hands. Selling your annuity payments can be the-solution to a range of financial troubles. You may be thinking of starting a small business, buying a house, paying off debt or student loans, facing a crisis like foreclosure, or you may want to use a portion of your future pay- outs to help you get back in financial control.
How to choose the right structured settlement company
Once you decide to put your structured settlements for sale, your work has just begun. You must now find the best company to work with to ensure you receive the most money for your compensation settlement. Also, to ensure that one gets the best service possible – the annuity owner must choose the company that they will sell their structured settlement to. There are state and federal laws which exist to protect clients against unscrupulous companies. However, if you are considering selling your annuity, you may have a difficult time locating potential buyers. That is because there are some predatory structured settlement companies out there waiting to take-advantage of less knowledgeable consumers, and those in a desperate situation. It is therefore very crucial to know what to look-for when choosing an annuity settlement company. Finding a buyer may be as simple as asking your accountant for a recommendation, or even a search over the internet. Regardless of how you find an annuity buyer, all reputable purchasers should have similar characteristics.
Quality annuity-buyers should:
Demonstrate a genuine interest in helping you and avoid high pressure sales tactics
Have positive reviews on review sites
Encourage the seller to speak with other buyers
Be in the business for a considerable amount of time
Encourage the seller to speak with their attorney or accountant
Offer a low discount rate
The ability to get quotes quickly
Let you read the paper-work before signing
Offer cash advances
Employ expert attorneys to facilitate the sale process
Have adequate staff and helpful customer service representatives
Some of the best-rated structured settlement companies include J.G. Wentworth, SenecaOne, and Olive Branch Funding. J.G. Wentworth is nationally-recognized as the largest buyer of future payments in-the nation. It is best for clientss with annuities, structured settlements, or contest or lottery winnings. Olive Branch Funding is ideal for consumers who need access to their money fast, clients with annuities and individuals with contest or lottery winnings. On the other hand, SenecaOne has been in-business for over 20-years, also providing financial counseling to their clients.