Structure settlement can come as a real financial support in the difficult times. This type of financial instrument is likely to be the result of some kind of accident or a lawsuit. In exchange of this structural settlement the guilty party becomes free of any kind of future liability related to this incident. A future date is set for the payment on which the recipient will accept the said amount. This payment may be spread over a short or long period of time.
In many cases the recipients decide to sell their structured settlement. This can however happen only if the recipient is of age and is of sound mind and body to take such decision. One more legal obligation before making the decision for selling the structured settlement is to see that this payment source has not been contractually obliged to someone else. If these criteria are fulfilled then the recipient of the structural settlement has the right of selling the financial instrument.
The seller of the structural settlement receives a flat rate in present in exchange of the future money that is promised by the means of the structural settlement. This rate is decided before making the deal.
Judging the decision:
Selling the payments of structured settlement can be a really good decision for some people. This decision can help them end their immediate financial problems. There are many circumstances in which the people decide to sell this financial instrument in exchange of money to satisfy their present needs. Some of these circumstances are:
- The seller of the structured settlement is unemployed and needs immediate financial support.
- After a disability due to accident many people lose their job or become underemployed. In this situation they need extra money to fulfill the needs of their family.
- In case of the death of the bread winner of the family, it may move to bad financial conditions. To support the family at this time the structured settlement can be sold.
But despite of the immediate cash inflow the seller of the structured settlement should be aware of the guaranteed money he/she is giving up to have their financial needs fulfilled in present. This financial instrument can come as a great support in future, thus the seller should try every other option of fulfilling their needs in present before going out to sell the structured settlement.
For many people selling of structural settlement may come as a relief but before making the deal the seller needs to know, whether it is really the right time to sell it. For making every financial decision there is a right or wrong time and same is the case with structured settlement. However it is pretty difficult to decide whether or not the person should sell this financial instrument but there are a few things which can help him/her in the decision.
Is it is right time to make the decision?
As per Andy from Cash Future Payments this financial instrument should be sold only to the credible buyer. There are some tips which may help the seller in making the correct decision at the correct time.
First thing to think about is whether or not the person needs all cash out of the structured settlement. If the person is not in need of a very big amount then it is possible to sell one part of the structured settlement and keep the rest for the regular installments for future. In this case the seller is fulfilling his/her present financial needs without leaving the security of regular payment in future. So, if the present need is not so big and can wait for a little time, then it is the right time to sell a part of the structured settlement.
The benefits and drawbacks of selling the structured settlement are always the topic of argument among experts but the correct time of selling the structured settlement can make the decision go into the favour of the seller. If the person is in college and does not require a large sum of money, then it is surely not the time to get into any serious action. These people can keep the structured settlement as long as they are able to manage their small needs like rent, groceries and studies.
The people who have to pay the medical bills immediately may come to the instant decision of selling the structured settlement but if there is any chance of paying the bill in a rolling fashion then it is not the right time to sell the source of regular payment. But if it is necessary to pay the bills immediately and there is no other financial source of paying the bills. Before selling the structured settlement it is necessary to think about all the good and bad outcomes of the decision and take a best course of action. There should be proper and accurate calculation of present and future to back up this decision. If the seller can see real benefits in his/her decision of selling the structured settlement then it is the right time to get the process started. But it is better to consult an expert who will be able to provide some valuable inputs in the matter. Taking assistance from a knowledgeable person can come as a real help.