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20 Feb 2014

Structured settlement for debt repayment

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While the exact amount will vary from company to company, consumers report getting between thirty and fifty percent of the total amount they would have otherwise received. Because some structured settlements are designed to make payments until the end of the recipients life, it is hard to determine how much that person would have received had they opted to continue to get payments. In cases where a structured settlement is set up like this, most companies will pay between three and five years worth of payments in a lump sum. In cases where a person believes that they will not live this long, it may make sense for them to sell their structured settlement.

The Beginnings of Structured Settlements

I was around for a very little while before we had the codification that we got with the law. There were some questions on all the structured settlements as to what the liability would be for those who owned them, what we used to call the buy and hold annuities, said Early. The Ringler representative said that Senator Baucus role in clearing up ambiguity with structured settlements was to give definitive closure for both sides of the case. The creation of the qualified assignment allowed for a defendant to extinguish its obligation by getting a structured settlement, putting it with a qualified assignee and removed any concern about what the future obligations were of the defendant to the plaintiff. The plaintiff no longer had to look to the defendant for the ultimate security but to a subsidiary of a life insurance company, which was the final security and certainty that every plaintiff wants and the corresponding closure that every defendant wants, Early said. The tax code implementation made it easier to determine where liability or the responsibility would rest for structured settlements.


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