Have you ever heard the term structured settlement and not known what it is? I have heard it more than once, especially since my sister is in the middle of a lawsuit over my nephew’s lead poisoning. When you win a lawsuit, there are different ways that it can pay off. It can be done as a lump sum or as a structured settlement.
A Structured Settlement takes the sum of your settlement and breaks it down into smaller payments over the course of time. It’s usually set up this way so that you don’t have all the money come in at once and get overwhelmed. The problem, however, is that often when Structured Settlements are set up, they don’t take into account people getting into a situation where they need more money.
Perhaps your structured settlement is from getting hurt at work and not being able to work for a period of time. If that’s the case, then the payments need to be enough to cover the expenses that are normally incurred, but those aren’t taken into account when the settlement payments are set up. Perhaps you have medical expenses that you’re trying to pay off, but the settlement doesn’t give you enough to pay for them.
Lawsuit settlements aren’t the only type of Structured Settlements, though. Lottery payments are set up that way as well. Most winners take their winnings over time, thinking that they are getting more that way, but sometime down the road, they get hurt or something happens and they’re facing financial hardships. That’s why there are companies like Stone Street Capital out there, they offer you the option of converting your structured payments into a lump sum payout.
They let you take care of what you need to take care of without the wondering if your next payment will be enough. Just something to think about if you’re ever in that position.