A structured settlement agreement is a legal arrangement between two parties, commonly used in personal injury cases, where the plaintiff receives periodic payments over time instead of a lump sum settlement. While structured settlements provide long-term financial security for the plaintiff, there may be situations where the plaintiff needs a lump sum payout to cover immediate expenses.
This is where a claim resolution structured settlement agreement comes into play. It allows the plaintiff to sell a portion or all of their structured settlement payments to a third-party company, called a structured settlement purchaser, in exchange for a lump sum payment. The purchaser assumes the obligation to make the future periodic payments.
The process of selling structured settlement payments requires court approval, which involves demonstrating that the sale is in the plaintiff`s best interest and that they fully understand the consequences of the sale. The court will review the terms of the agreement, including any fees or commissions charged by the purchaser, and determine if the sale is fair and reasonable.
Before entering into a claim resolution structured settlement agreement, it is essential to carefully consider all factors. There may be tax implications, and a lump sum payment may impact eligibility for means-tested government benefits. The plaintiff should consult with a financial advisor or attorney to assess the long-term financial implications of selling structured settlement payments.
Moreover, it is important to select a reputable structured settlement purchaser. Unfortunately, some companies engage in predatory practices, charging high fees and providing little benefit to the plaintiff. Be sure to research potential purchasers and check their ratings with the Better Business Bureau and other consumer protection agencies.
In conclusion, a claim resolution structured settlement agreement can provide financial flexibility to plaintiffs with structured settlements. However, it is crucial to approach the process with caution and seek expert advice to ensure that the sale is in the plaintiff`s best interest. As always, transparency and informed decision-making are essential components of any legal agreement.