A structured settlement agreement can never be altered once it has been made, preventing you from getting a lump sum amount when required during an emergency. But the law does allow you to transfer the rights of receiving the annuity to a third person if you wish to do so; or in short, the law does not deny selling of the structured settlement and obtaining money for it.
So whether it’s a medical emergency, an opportunity to buy a high value real estate or for even funding college education, you can sell the structured settlement and obtain the appropriate money for it. Obviously here the question rises of where to sell the settlement and to whom. This article outlines everything you need to know about finding a buyer for your structured settlement, how they operate, what are the costs involved and the legal formalities involved.
The definition Of A Structured Settlement Reliable Buyer
In order to prevent the recipient of a settlement squandering money and again ending up in financial trouble, the periodic payment settlement act was established in 1982, which presented the option for defendants to pay the agreed settlement in the form of annuities. Though this was a boon in one way, it was quite restricting for the recipients as the economic condition was ever changing. To help people out in such cases, few financial companies started buying the structured settlement and paid the lump sum amount to the recipient in return.
But during the 90’s the business took off so well, that a lot of them started to make unreasonable profits out of it by charging extra fees and undervaluing the original settlement amount. Hence the reliability of the buyers became questionable and the government had to intervene to make the process more transparent.