Your Options for Structured Settlement Payment
Structured settlements are a guaranteed way to ensure that you, as a claimant, will receive the court-stipulated compensation from the defendant in the case. What’s interesting to note here is the fact that settlement payments may vary from one case to the next, depending on the contract approved by the court.
A closer look at structured settlement payments
Depending on your financial health as a claimant, you may specify the frequency and duration of the payments. Examples would be every month for a fixed number of years or every quarter. What’s important is that these requirements are legally binding, and if necessary, you can report to the court any violation in the remittance of payments.
There are federal and state laws that govern how these structured settlements should be imposed, as well as the procedure for actually receiving the structured settlement payment from the other party. Usually, a third entity may be included in the arrangement to serve as guarantor that both parties abide by the agreement. The claimant should feel a certain level of satisfaction that, even if the full amount has not yet been paid, the third party will ensure that the money is safe and will be given in due time.
Some situations require that the frequency of payments be increased, or the duration of the structured settlement payment be reduced. This is usually what happens when the claimant’s livelihood is severely affected by the injury or disability that started this whole proceeding in the first place. Unfortunately, the court-approved scheme will still have to be followed, even if it’s not beneficial to the claimant. You will have to pursue other options, like settlement funding or selling your structured settlement, so that you can get your money immediately. Of course, the buyer of the settlement will deduct a small amount from the total claim, reducing the amount you will receive.
Photo Credits: Daniel Borman
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