Court judgments where a structured settlement is awarded are called periodic payment judgments. If a claimant has been awarded a financial resolution in which he or she will receive periodic payments instead of a lump sum, a loan may be extended against the value of the settlement.
Such loans are offered by many financial organizations specializing in legal funding. The practice is not held in very high esteem, since the laws concerning structured settlements are designed to protect the recipient from exploitation. However, the fact remains that funds received through a structured settlement represent a form of income, and loans against any sort of regular income are always available.
Availing of such a loan is often the only recourse open to a claimant for obtaining a substantial amount of money. A structured settlement is treated as a special income tax category and cannot be traded in for a lump sum settlement.
The laws surrounding structured settlements are rather specific, and obtaining a loan against them is not as easy as it may sound. Financiers who claim otherwise are usually not reliable. In legal terms, using a structured settlement as collateral for anything at all, including a loan of any kind may void the whole deal. Availing of such a loan is a matter best left to a knowledgeable attorney or law-savvy accountant.
In cases where loans are taken against a structured settlement, the purpose is usually not to obtain hard cash but to buy a house or some other asset. In such cases, the money coming from the settlement may be used to pay regular installments and would not represent a loan in the classic sense of the word.
Monday, March 30, 2009
Wednesday, March 25, 2009
The Right Company For Structured Settlements
For selecting the right one for structured payments, you should take the help of structured settlement consultants. Still one needs to do his or her homework before selecting the right structured settlement dealers. Primarily, understand what the role of a structured settlement company is. The basic role of these companies is to assist you in receiving the payment and ensure that you complete all the procedures without any problem. Second, check the experience of a company in selling structured payments. See whether they have been able to successfully meet the needs of the people and provide them with the assistance to get cash for structured settlement payment or not? If possible, get references from them. Do some online research about the company, read the customer reviews and opinions. You can take the advice of better Business Bureau office, nearest to your home. Once you are willing to get the deal for your annuity payment, check out for terms and conditions. Are they fair enough and does it mention terms for deal rightly. Check the financial issues like interest rate as well. To exactly determine the competence of the company in all aspects, ask the structured settlement broker/executive to give you various proposals, which are fair enough. Take their financial advice on how to maintain cash for annuity structured payment.
Pre-Settlement and Post-Settlement Funding
Pre and post settlement funding are taken in consideration during and after legal activities or litigations. Most of the time these litigations are health related or based on lawsuits for similar purposes. Just like these two terms imply Pre-Settlement transactions are effective before a decision is reached as far as the verdict concerns, while Post-Settlement transactions are processed after a verdict has been reached.
Having in mind the basic requirements each procedure involves we can infer that post-settlement transactions are much easier to execute due to the fact that the final verdict has been reached. These transactions are made to fund a litigation process providing the means for lawyers and clients to financially survive during a legal procedure.
Institutions tend to charge different fees or rates for each type of funding due to the fact that pre settlement transactions represent an increased risk factor because the results of the litigation are not yet known. Having this condition in mind we can also establish that pre settlement funding entails higher fees due to risk factors. If an injured person is not successful during the litigation the pre-settlement funding doesn't have to be repaid in full, instead the client only has to pay the amount of the share of the settlement if it is smaller than anticipated.
Another key difference between pre and post settlement procedures is that post settlement funding does not affect special incentives established during litigation. This also represents one of the advantages of one type of funding over the other. Also, pre-settlement funding is somewhat restricted compared to post settlement funding where the money can be utilized "at will" by the plaintiff.
Post settlement funding transactions are legal throughout all states while pre settlement funding is not legal in some states. Post settlement procedures are convenient to both attorneys and clients because it provides the means to solve legal and financial issues and also allows clients to pay medical bills diminishing the effect of such debts.
Having in mind the basic requirements each procedure involves we can infer that post-settlement transactions are much easier to execute due to the fact that the final verdict has been reached. These transactions are made to fund a litigation process providing the means for lawyers and clients to financially survive during a legal procedure.
Institutions tend to charge different fees or rates for each type of funding due to the fact that pre settlement transactions represent an increased risk factor because the results of the litigation are not yet known. Having this condition in mind we can also establish that pre settlement funding entails higher fees due to risk factors. If an injured person is not successful during the litigation the pre-settlement funding doesn't have to be repaid in full, instead the client only has to pay the amount of the share of the settlement if it is smaller than anticipated.
Another key difference between pre and post settlement procedures is that post settlement funding does not affect special incentives established during litigation. This also represents one of the advantages of one type of funding over the other. Also, pre-settlement funding is somewhat restricted compared to post settlement funding where the money can be utilized "at will" by the plaintiff.
Post settlement funding transactions are legal throughout all states while pre settlement funding is not legal in some states. Post settlement procedures are convenient to both attorneys and clients because it provides the means to solve legal and financial issues and also allows clients to pay medical bills diminishing the effect of such debts.
Five things NOT to do when Selling your Structured Settlements
One: Don't sell to the highest bidder. Why?
There is what is called High Balling. Some brokers or structured settlement or annuity sources will make a high offer just to get someone under contract. Then they will start making excuses and reduce the offer. Once you are under contract with a funding source, it is very difficult to back out. Even if you are able to pull out, you will have to start the whole process over again losing valuable time, at a time when you may need money desperately.
Two: Believing the funding source when they say you will have your money in a couple of weeks.
The time to close is dictated by individual state laws, both where the state and the insurance company have their home office and the state where the client resides. In some states, it is possible to close in about a month. In other states, it can take as long as four months. With the rest, it is somewhere in between. Court orders take time and all transactions need one. Don't believe it if someone says they can close in a week or two.
Three: Thinking you have to sell the whole settlement or annuity. Not determining how much you really need.
Why sell a $300,000 settlement when you only need $25,000? If you need additional cash sometime in the future you will be able to sell more payments or lump sums at that time. You will end up with more cash, than if you sell all payments at once; and it allows you options.
Four: Letting emotions or being desperate control our decisions.
We have all gotten excited or felt desperate when faced with various situations. We could be excited about buying a home or starting a new career; or we could be feeling desperate because we are about to lose our home or are facing high medical expenses. Even though we are excited or desperate, we really must think through our decision. Some brokers or funding sources will try to take advantage of us and our situation. We should discuss our situation with a trusted family member, friend, attorney, pastor or whomever. We do not want to ruin tomorrows financial options by making irrational decisions today.
Five: Check out the reputation of the structured settlement or annuity purchaser.
Call the attorney general or consumer affairs in your residence state and the state where your funding source is located to see if there are any complaints about that funding source. If there are a lot of complaints against the source you are considering, take that as a red flag and move onto the next source. Don't agree to anything or sign any agreements until you feel you are dealing with a reputable structured settlement or annuity purchaser.
Remember to first look for other sources of money like family, banks and ect., before selling payments. If your settlement is your only source of income it is not in your best interest to sell. Make sure the people who are buying your payments have your interests in mind. SELLER BEWARE.
I hope that you have a positive experience and put the money to good use, if you decide to sell your payments.
There is what is called High Balling. Some brokers or structured settlement or annuity sources will make a high offer just to get someone under contract. Then they will start making excuses and reduce the offer. Once you are under contract with a funding source, it is very difficult to back out. Even if you are able to pull out, you will have to start the whole process over again losing valuable time, at a time when you may need money desperately.
Two: Believing the funding source when they say you will have your money in a couple of weeks.
The time to close is dictated by individual state laws, both where the state and the insurance company have their home office and the state where the client resides. In some states, it is possible to close in about a month. In other states, it can take as long as four months. With the rest, it is somewhere in between. Court orders take time and all transactions need one. Don't believe it if someone says they can close in a week or two.
Three: Thinking you have to sell the whole settlement or annuity. Not determining how much you really need.
Why sell a $300,000 settlement when you only need $25,000? If you need additional cash sometime in the future you will be able to sell more payments or lump sums at that time. You will end up with more cash, than if you sell all payments at once; and it allows you options.
Four: Letting emotions or being desperate control our decisions.
We have all gotten excited or felt desperate when faced with various situations. We could be excited about buying a home or starting a new career; or we could be feeling desperate because we are about to lose our home or are facing high medical expenses. Even though we are excited or desperate, we really must think through our decision. Some brokers or funding sources will try to take advantage of us and our situation. We should discuss our situation with a trusted family member, friend, attorney, pastor or whomever. We do not want to ruin tomorrows financial options by making irrational decisions today.
Five: Check out the reputation of the structured settlement or annuity purchaser.
Call the attorney general or consumer affairs in your residence state and the state where your funding source is located to see if there are any complaints about that funding source. If there are a lot of complaints against the source you are considering, take that as a red flag and move onto the next source. Don't agree to anything or sign any agreements until you feel you are dealing with a reputable structured settlement or annuity purchaser.
Remember to first look for other sources of money like family, banks and ect., before selling payments. If your settlement is your only source of income it is not in your best interest to sell. Make sure the people who are buying your payments have your interests in mind. SELLER BEWARE.
I hope that you have a positive experience and put the money to good use, if you decide to sell your payments.
Tuesday, March 24, 2009
Tips To Sell Structured Settlements
If you want to sell structured settlements, you have come to the right place. Structured settlement is a payment option of, mainly, insurance claims and lottery prize disbursement. In simple terms, it is the method of paying the claim amount as periodic installments than as a single lump sum. Suppose a person has agreed for this payment scheme at first but afterwards the person suddenly faces a financial crunch, to overcome which a large sum is required, if you have a structured settlement and want to get money by selling it, you can do so quite easily. Just fill the forms here and know the real value of your settlement.
The Need To Sell Structured Settlements
The structure and payment mode of these agreements ensure that you get a specified amount on regular intervals. While it offers a great financial security of a fixed income, it does not serve well to overcome a sudden financial crunch we all find ourselves in at some point of time. But there are companies that purchase these settlements and provide money to people. So if you want to get a large sum of money quickly, you can get that by selling structured settlements. You will not get the full value of the insurance amount. The concerns of rising inflation and interest rates play spoilsport here. But still you can sell structured settlements to get a major portion of the claim amount.
The proportion of the actual insurance amount one gets depends on the time remaining for the expiry of the agreement. If this duration is long, then the proportion will be less. But if the duration is short, then one is likely to get a substantial portion of the remaining claim amount.
Another aspect one should keep in mind when one sells structured settlements is the law in that particular US state. There is a federal law regarding structured settlements, and 36 US states have legislation that allows a person to sell structured settlements.
Choosing the right company for selling structured settlements is also important. One must do some sort of research about the companies before settling in to do business with a particular company. Good companies have some common features. They will have registration, insurance, and a proper agreement bond. It is ideal to select a company that has an excellent working relationship with the insurance company. There are plenty of options available for getting the payment when you sell structured settlements. But the important thing one must know is the value of one’s settlement.
Choosing Conference Call Services For Business
The Internet is a vast universe where developments a made everyday. It is expanding at an incredible rate. Service providers realized early on that business conference call was a service that has not yet reached its full potential and wanted to get in on the ground level.
There are many different companies that are taking advantage of business conference calling and have begun to offer this service to its clients.
By using the Internet to business conference call, you can call anywhere in the world and there is no charge. This is because each Internet service provider (ISP) includes this service in their monthly rate.
When you do a Google search, you will find that there are thousands of links to companies that provide conference call services. These companies have realized just how far business conference calling can go and have jumped in to be a part of history.
There are many different business conferencing plans, however, most charge by the minute so it is very important that you decide on which plan is best for you. Doing your research in the beginning will assist you in both saving money and running a profitable business. Choosing the right equipment is also crucial to the success of your business.
Business conference calls will continue to be improved and upgraded for years to come. There are new designs and breakthroughs everyday just waiting to be introduced into the market. Businesses will continue to use these new features, as they will continue to contribute to their success.
Five Reasons to Apply for a Settlement Loan
A settlement loan provider reviews the probability and merit of winning your current lawsuit and determines if you’re eligible. Below are the top 5 reasons why a settlement loan would be right for you.
#1. Credit checks or Income Amounts Aren’t Required with Settlement Loans.
A settlement loan is a provider or investor buying interest into your pending lawsuit. They provide a specific monetary portion of your estimated awardable amount in return for a specific amount of it and the original amount loaned to you. Since settlement loans are solely based on your case your credit report and current income play no role in the application process.
#2. Your Are Required to Only Pay Back if You Win.
This is the main reason settlement loans aren’t consider traditional loans. If you lose your lawsuit you’re not responsible or obligated to pay back the amount of the settlement loan. You only pay back the amount if you win your lawsuit case; this fact alone makes a settlement loan far better than a traditional loan.
#3. Prevent Early Settlement of Your Pending Lawsuit
You’ll probably not be able to work during your pending lawsuit; income will be unattainable and you’ll be stuck with your current assets. Ethical rules prevent attorneys from loaning their client money, as it might create situations where you’ll feel you’ll need to settle sooner when you really didn’t want to. A settlement loan can provide you with financial support during your pending lawsuit. You won’t feel the stressed to settle your case early; you’ll be able to make all medical payments, auto payments, home mortgage, etc on time and protect your credit history.
#4. Your Not Required to Take Out The Full Amount
You never need to take out the maximum amount allowed in you’re approved settlement loan. Settlement loan providers go as low as $150 and up to $5,000,000+ when it comes to loan able amounts in your pending case. This allows you to only take out what you need during the case and keep more of your awarded money after a verdict is reached in your case. Settlement loan providers allow you to take out multiple settlement loans if you still need more money and the case has not ended yet.
#5. Settlement Loans Do Not Affect Your Case.
For some reason people think settlement loans will effect their case, this is farther from the truth. The defendant in your case is never notified if you apply for andor get accepted for a settlement loan. In fact, the court itself isn’t even notified about the settlement loan and the provider is not required by law to notify anybody beyond your attorney.
Why Settlement Loans Aren't Really Loans
In fact, a settlement loan is really a settlement loan provider buying interest into your pending case. They are taking the risk that if you win the case they will give little now and gain big later. Settlement loan providers do not require clients to pay back loans if they lose their pending lawsuit. This simple fact alone doesn’t quality settlement loans as an actual loan.
This however is the main reason large interest amounts are attached to settlement loans. This allows the settlement loan provider to be able to handle a certain amount of losses per year and still make a profit. Settlement loan providers will also only accept a case that has good merit and a good chance of winning in the long run. You’ll find that more people are denied settlement loans than are accepted.
You can shop around with different settlement loan providers if one denies you. They all have their own guidelines when it comes to accepting a case for a settlement loan. Shopping around will also allow you to find the best deal. Make sure to ask about any fees and what interest rate the loan will be provided at.
Remember; don’t jump at the first offer provided to you! You’ll be surprised at the difference in fees and interest rates charged per settlement loan provider. Some instances that occur are one will apply for a loan at the beginning of the case and get denied. Then, half way through apply again and get approved. This is because as the case goes on it’s easier to determine if your will be won or not.
Benefits of a Structured Settlements
One significant advantage of a structured settlement is tax avoidance. With appropriate set-up, a structured settlement may significantly reduce the plaintiff's tax obligations as a result of the settlement, and may in some cases be tax-free.
A structured settlement can protect a plaintiff from having settlement funds dissipated, when they are necessary to pay for future care or needs. Sometimes a structured settlement can help protect a plaintiff from himself - some people simply aren't good with money, or can't say no to relatives who want to "share the wealth", and even a large settlement can be rapidly exhausted. Minors may benefit from a structured settlement as well, such as a settlement which provides for certain costs during their youth, an additional disbursement to pay for college or other educational expenses, and then one or more disbursements in adulthood. An injured person who has long-term special needs may benefit from having periodic lump sums with which to purchase medical equipment or modified vehicles.
In some situations, it will be better for a severely disabled plaintiff to set up a special needs trust, rather than entering into a lump sum or structured settlement. Any plaintiff who is receiving, or expects to receive, Medicaid or other public assistance, or the guardian or conservator entering into a settlement on behalf of a disabled ward, should consult with a disabilities financial planner about their situation before choosing any particular settlement option or structure.
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