Cash for Structured Settlement

Cash for Structured Settlement.

In the market fall of 2008, you might have witnessed many families being rendered homeless and even you might have felt bitter touch of recession. These kinds of incidents are very common during an economic crisis. But how do you avoid such circumstances? You could cut down on your expenses to keep you floating. But what do you do if you lost your job and don't see any bright one’s ahead? Here's an instance of a family that I know of and how they were able to find the light deep in the jungle of darkness.

The husband of this family in consideration is a great friend of mine and he happened to narrate this incident to me once. He was working as a senior manager in a software firm. He had a loving wife, three kids and a very well paid job. To sum it up, he was living a great life. But when the markets came stumbling down, little did he know that this hit would affect him to the extent that it did. He lost his job. And due to his lavish lifestyle, it was not uncommon that he had a lot of loans on him. The loan lenders started to trouble him day and night asking him to either pay back the loan or vacate their home so that they can sell it off to settle the bill.

He saw no way out of this dangerous maze. Every direction he could take seemed to end up with a negative result. At this point, the family started going through all their financial assets to see if anything could lift them out of this hell hole. They found some sundry assets but they were not enough to pay off their debt and save their home. That's when the wife found the structured settlement she had received long back when she met with an accident. The structured settlement was scheduled for 30 years and it paid $900 a month. But this was insufficient either. So they decided to sell the structured settlement.

Consider yourself a plaintiff who has just won a compensation case. Now you are asked to choose the type of compensation you wish to receive i.e. a one time cash settlement or a structured settlement. The decision you make at this point of time must include a well thought over choice. In order to receive the right type of settlement, you need to analyze your over all situation and then decide which settlement will help you the most.

In most cases, a cash settlement is preferred, but it may not always be the right choice depending on your specific financial situation or future needs. In a case where you receive settlement for a case of injury where you had to be hospitalized, going for a lump sum settlement would seem better as you may wish to pay the mounting hospital bills without any burden. You may also take up any project that you had previously been holding back due to lack of sufficient funds. For example, getting a new house and setting it up the way you like, going on a vacation around the globe, etc. Cash settlements usually change your whole way of living, which might be a real pleasurable experience.

Lump sum settlements provide you with the total cash under your control. You may use it to invest in your business or take up a new career etc. The point is, cash sum settlements, and you are once and for all done with the defendant in the case and are totally free to make decisions as to where the money goes and how it circulates. This specific point will lead us to analyze the disadvantages of cash settlements due to the basic human tendency of making wrong decisions.

In case of lump sum settlements, you will be handed the total amount. Now it is your decision on the how to handle this sum of cash that will invariably decide the destiny of this amount. The general human behavior is to spend according to the income. Hence, you may start spending lavishly on account of the lump sum balance in your bank. If not planned properly, this amount that once seemed an inexhaustible sum will be merely enough to buy you, or if you are a nice person, just your date a movie ticket.

Another disadvantage of a lump sum settlement is that it tends to be much smaller then the structured payout. Usually people find that the lump sum settlement ideas not provide the relief for the pain and suffering. . A series of structured settlements will create ongoing compensation even for the individual’s lifetime that a lump sum amount does not provide. Hence one is required to consider all these factors while prompting for the type of settlement.

These are the very basic advantages and disadvantages of a lump sum settlement. To know the deeper and more technical aspects of lump sum settlements, talk to an expert in this field at Fair Field Funding. Fairfield Funding is a direct buyer of structured settlement annuities, will help get you cash for settlement.

If you were involved in an accident at work (workers compensation claim), been involved in an automobile accident, or a wrongful death case and won that lawsuit then you were awarded a settlement. If the amount was small it would have been awarded to you in a lump sum. If it was a rather large amount then it would be awarded to you in a Structured Settlement.

Another benefit of structured settlements is that they are specially designed to meet your needs over the period of time. In case of the death of payee the guaranteed portion of settlement is paid to beneficiary named in papers. One of the highlighted benefits of these regular payments is the excellent tax advantages that come with it. It is basically income exempted from taxes unlike the usual salary or other forms of income like royalty or dividends.

Selling your structured settlement payments will make you lose many tax benefits in the process. Selling this guaranteed income has only an advantage of large yet single payment. Ultimately, with structured settlements both parties are in a win-win situation; you become the recipient of a constant flow of income (possibly for life) and the responsible party for paying doesn't have to worry themselves with monthly or annual payments.

If your structured settlement is already in place, keep in mind that it was probably set up from the beginning in a way that is tax-advantaged for you. You may therefore have significant tax penalties if you decide to sell your payments for a lump sum. After receiving the necessary documents, from your attorney, most decisions are made within 48 business hours, depending on how soon they can talk with your attorney. When approved for funding, your funds are received within 24-48 business hours.

Even though the country was in chaos over the recession, a company decided to buy the family's structured settlement for a well bargained $50,000. This might have seemed as a stupid deal to outsiders but it was a splendid boon to the family. It just took them a couple of months to get their money wired to their account. They were finally successful in not only clearing off their loans but also were left with sufficient funds to help start their own business. The family currently run a computer trouble shooting business and is doing pretty well.