What is a Court Structured Settlement?
Why Structured Settlement
Initially when these two words structured Settlement were mentioned what came into my mind was a house constructed using some form of materials which are movable. It took me a lot of time to really find out what structured settlement is, after some weeks of such and reading of materials, asking questions from relevant people and material I came to know more about structured settlement and that is what this hub is all about. For those that do not know about structured settlement keep reading while those that understand it well can update themselves on this topic
When there is a case in court and the a plaintiff has to be paid a large sum of money, the defendant attorney will process a payment in an installment manner, paying through installment is known as structured settlement where money is not paid in lump sum. Structured settlement is always done in form of annuities (pension, allowance) and by doing structured settlement by annuity will guarantee that future payment are done without any problem. Once the two parties have agreed on this payment mode, they then decide over how what period should the money be paid
Why structured settlement?
With this form of payment any party will not feel the burden of paying the whole sum of money, and some instances payment do not attract tax, hence enables one to avoid other charges. Structured payment is of benefit to plaintiff since if he is a bad spender then he will not spend this money at once. Structured Settlement is like a kind of saving whereby you will be receiving money a given time for a particular period, and this guarantee you with positive cash flow
Problem with Structured Settlement
A plaintiff may be delayed with this kind of payment and if he did budgeted for the money in a lump sum, then they will have to wait, this will force them to get money elsewhere and repay as they receive money from their structured settlement payment form
Do your due diligence before getting into Structured Settlement with anybody as there could some kind of exploitation and under estimation which can cost you a lot of money through Structured Settlement Payment