There will always be major decisions to be made in a person’s lifetime and selling structured settlements would top the list since most settlements are large sums of money. So large that they are life altering amounts of money for many of the individuals involved. The problem is that when such large amounts of money are involved in complicated financial instruments, savvy finance companies will look to rip of unknowing individuals who might be in cash strapped propositions. It is important to take precaution and seek advice of an accountant or attorney familiar with this area of the law. The biggest drawback to selling is the discount rate. Sellers can expect to give up anywhere from 12-15% to 50-70% of the money. This is the single biggest deterrent to selling if the individual is not pressed for the lump sum. The other negative is the time it takes for the transaction to finalize. It is generally two months to get the court order of approval and all the paper work complete.
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