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If you are or were involved in a lawsuit, then you know that one of the hardest things is having to wait for your settlement payment. If you had the bad luck of becoming temporarily unable to work or completely disabled as a result, your headaches multiply exponentially. You could easily lose control of your finances and fall behind on your credit card payments, living expenses and monthly car installments. You could even lose your home without the means to pay for it. Luckily, you do have options.
The benefits of a cash settlement agreementBecause there are so many people caught up in litigation that have won their cases but are just waiting for their settlement to pay out, companies exist that understand the importance of getting you your money as quickly as possible. These companies turn a tidy profit by arranging to give you a cash settlement for less than your expected return in exchange for waiting for your original settlement to pay out and keeping the difference. This arrangement benefits both parties; you are able to get funds to move forward with your life, and the company gets to see a positive return on its investment in the near future. The cost of such a settlement to you can range anywhere from 20-40 percent of your original settlement amount. Though these figures are by no means all-inclusive, they are a good guide to go by. If at first the cost of such a settlement seems steep, keep in mind that it could take several years for you to see a penny from the settlement, in which time you could lose a lot more than just a percentage of your settlement.
Before you sign any documentation or contracts with any settlement companies, it is a good idea to have your attorney review the documentation and explain it to you so that you understand your rights.If the famous JG Wentworth saying, "It's your money and you need it now!" applies to you, then looking into a cash settlement agreement is right for you.
What else can I help you with?
Cash for Settlement?
Those persons who are receiving a settlement or annuity in increments can sell the settlement agreement as if it were property. A settlement is viewed as an asset that can be sold for cash. Buyers of settlement agreements take over the future payments of the agreement. They also charge a fee for their services. Getting cash for settlement payments is a lot like getting a cash advance loan. The fee for selling the settlement is higher than what would be charged for getting a loan. The company that provides the advancement of full or partial settlement money then receives the scheduled payments until the total advanced plus any fees is recovered. There are many reasons why a person would want to sell a settlement agreement. Many people want to pay off a home or vehicle, or attend college. They may have a large medical bill that demands payment. Settlement agreements are set up to the advantage of the person or company that must pay out the long term payments. It makes paying a large court award feasible for some. As with any cash advance, the reason why a person wants to get out of a settlement agreement with long term future payments is their own business. The lender just wants to be sure that they make a profit and will be repaid. In some cases, the court must approve sale of a settlement agreement. For some people, the court has supervised a settlement and is acting on behalf of that person. A long term settlement payout benefits the person receiving the settlement money because it will provide them with long term income. This is especially useful if a person has been severely injured and cannot work or requires long term care. If that person sells off their settlement, they may find themselves without the long term income they need. Selling a settlement requires careful thought, but you can get cash for a settlement. Consult with your attorney regarding the legal questions or restrictions that may apply. If you take cash for settlement, the total amount you receive will be less than under the structured plan originally set up in court.
Where can I find reliable information on cash settlements?
The primary source of information would be the entity offering the cash settlement. The terms of the settlement and subsequent payout would be dependent on several factors, and detailed in a contractual agreement. You can read general information here: http://www.investopedia.com/terms/c/cashsettlement.asp
Where can you find a cash settlement?
A cash settlement can be obtained through an insurance company if you have a claim in which money is owed to you. A cash settlement is usually paid in one lump sum, as opposed to a structured settlement of paid installments.
When you am awarded a cash settlement how long does the other party have to pay it?
A cash settlement payment by the other party is dependent on the contract that was signed. All vary depending on the terms of the agreement. It is beneficial to reference the contract in which both parties signed.
Can I obtain a cash settlement after a car accident?
Yes, you can infact obtain a cash settlement after a car accident. Once a party is found at fault and proper court proceedings have been gone through a cash settlement can be obtained
What is a cash settlement?
A cash settlement is used to describe several types of financial transactions. This term can refer to funds paid to settle a debt or a lawsuit. A cash settlement is when a company gives a sum of cash in return for a structured settlement that pays you over a period of years. Usually they don't pay you a very high percentage of what you are actually owed.
Is there a company in Colorado that will give a cash advance while waiting for a lawsuit settlement?
Advance America Cash Advance, Allied Cash Advance, and Ace Cash Express will all offer a cash advance, while you wait for your lawsuit settlement.
If a person needs information about cash for settlement, what type of lawyer should they talk to?
What type lawyer is needed for advise concerning a cash settlement?
How much money am I losing if I decide to go the route of cash for settlement?
The amount of money you will lose if you take a cash settlement depends on the amount of the settlement. Usually the amount you lose is worth it if you need the cash or don't want the other settlement option. If the other option is stocks then cash might get your more at this time due to the ups and downs of the stock market.
How is the fee for a cash for structured settlement deal determined?
The fee amount is determined up front as teh cash settlement deal is finalized. This fee is often based on the total percentage of the settlement.
What Is Cash For Settlement?
In the financial world, a settlement is the process where securities or interests are delivered to fulfill contractual obligations. In the legal world a settlement is an agreement between disputing parties about the case, reached before or after the trial. In the real estate world, a settlement is the final step before executing a transaction. As you can see, across the spectrum the term settlement has slightly varied meanings which ultimately mean the same thing. A settlement is, as you would expect, when two parties come to agreement. But what is cash for settlement? How does that work in the settlement process? Cash settlements typically occur as payments relating to futures contracts (a standardized contract to buy or sell something at a date in the future at market price) or a part of a legal dispute. The basic premise of a cash settlement is to use physical cash to conclude some sort of outstanding obligation, thus fulfilling the terms of the transaction. This agreement must be reached by both parties as a fair deal and is considered a resolution to the problem or transaction. Once the cash is delivered, neither party is obligated to the other any longer. So how does this work? In a legal sense, cash settlements are typically reached prior to court dates. In many cases a cash settlement will be reached when the offending party wishes to avoid time consuming litigation or perhaps fears the repercussions of being a headline news story. In this sense, a cash settlement can be used as a public relations move to help a company or person save face. Some may also opt to settle outside of court to avoid all the expensive legal fees involved in litigation. It is important to note that despite the speculation which may ensue, a cash settlement is not an admission of guilt. Another form of cash settlement takes place between vendors and clients. If a customer is facing severe financial issues with the threat of bankruptcy, a vendor may offer a settlement to avoid being listed as a creditor in the bankruptcy. This amount will typically be far less that the actual amount owed, but a sufficient amount to cover the expenses accrued sans profits. Finally, in the financial world, a cash settlement is a convenient way of transacting futures and options contracts. For example, if someone purchase a hay futures that is cash settled, rather than being required to possess all of the physicals bales of hay, they are required only to pay the different between the current price of the hay and its futures price. Essentially, cash for settlement is a simplistic way of handling a more complex situation. It can be used to settle contracts, legal disputes and debts. By opting to utilize a cash settlement, parties forfeit potential gains, but also reach a speedy and easy conclusion.
Selling a Cash Settlement for a Lump Sum?
After being awarding a cash settlement, some people are forced to receive small amounts of money over an extended period of time. Life changes like marriage, divorce, a child going to college or emergency medical bills can drain small payments quickly leaving no money for continuing expenses. Cash settlement payments can be cashed out, all or in part, for a lump sum payment. In order to sell a cash settlement, legal documents must be filed.Selling a Cash Settlement – More for LessPeople who choose to sell a cash settlement need to understand certain facts. The total amount a company offers for the cash settlement will be nowhere near the total amount that would have been received if smaller payments were continued. For instance, a structured settlement buyer may offer $5,000 to buy out payments that would have equaled $10,000 over a number of months. The person selling the money gets one lump sum to work with and the buyer makes money on the exchange.Dangers of Selling a Cash SettlementOnce the cash settlement is sold, there will be no more monthly payments. Payments will be restructured to go to the company that bought out the annuity or structured cash settlement. They will receive payments for the duration of the agreement. If the money was cashed out to pay major expenses, it could be gone within weeks and no further income will be received. In some cases, people choose to sell a cash settlement on a whim and later regret selling.How Long Does it Take to Sell a Cash Settlement?Total time will depend on the local court system and availability for court dates. In some cases, businesses offering to buy out the cash settlement will offer an advance on the total offer in order to keep clients around while waiting for court dates and legalities to be finalized. If the court case falls through, monies received may have to be paid back. Reading the fine print of any agreement can prevention further legal issues with selling a cash settlement.It may seem like a great idea to sell a cash settlement to a company willing to pay a lump sum in exchange for small, monthly payments. It is important to go over the pros and cons of receiving a lump sum verses small, monthly payments before agreeing to sell any cash settlement for a fraction of its worth.
