When the action is settled, the compensation is given as a lump sum or a series of payments. A settlement has been issued in a series of payments over time is called a structured settlement. Structured settlements are generally created by a third party intermediary to obtain financing.
How to Purchase Structured Settlements
State and federal laws may restrict the sale of structured settlements, and there are many legal complications that may arise. Since you need to replace cash for the right to receive future payments, make sure you're protected.
1. Working with an established broker.
2. Look for a structured finance solution that is a member of the National Structured Settlements Trade Association, which also places settlements with private investors.
3. Get more training to ensure you get the best price.
4. Retain an attorney to review the agreement to ensure that your interests are safeguarded.