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When it comes to closing past-due lines of credit that are dragging your credit score through the mud, a lump sum settlement poses one of your best options. Creditors are often willing to slash your total amount owed by up to 50% in order to minimize the risk of having to turn your account over to a collection agency for non-payment. 2 major factors will influence the amount of your final settlement. First, your representation (or lack thereof) will play a major role in how much you pay. Second, your ability to pay creditors on the spot will greatly factor into how much they are willing to reduce your total principle owed. You would be wise to consider these factors at length before deciding how to proceed with your settlement negotiations.
Representation
Lending institutions deal with non-payment cases on a regular basis and as such, many have grown cold to the individual circumstances that land people in crushing debt. They typically have a standard procedure by which they deal with individual consumer debtors and a set reduction amount from which they are very hesitant to stray. For this reason, you would be wise to consider retaining professional representation when it comes time to negotiate settlements with your various lenders. Specialized lawyers or debt-relief teams offer a terrific resource when you are in need of representation. While these services come at a price, they could result in you saving a great deal of money in the long run.
Cash on Hand
Creditors will be more willing to reduce the total amount of monies owed if you are able to pay your lump sum settlement amount on the spot. One of the best ways to acquire the cash you need is by taking out a consolidation loan, which is a large sum borrowed in order to pay off all your creditors at one time. Once approved for a consolidation loan, you will have a great deal of leverage in negotiating settlements with financial institutions. Bottom line, lenders want the money owed to them as soon as possible. If you are able to give it to them immediately, they are likely to reduce your settlement by up to 50%.
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What are the advantages of a lump sum settlement?
The advantage of a lump sum settlement is that one does not have to pay tax on it. The money has already been paid, so there is no worry about arrears.
How do debt consolidators eliminate debt?
Debt consolidation companies do not eliminate debt. Do not confuse this with debt settlement. Consolidation companies simply merge all of your debts together into one payment a month that you make to them and sometimes lower interest rates. Debt settlement companies, however, negotiate directly with your creditors/collection agencies to settle debts for a lower, agreed upon, lump sum. This in turn gets you out of debt quicker.
Is Debt Settlement easier than bankruptcy?
It depends on the amount you in your debt. If your debt is a large sum and figure, the best and most ideal thing would be to declare bankruptcy. If not debt settlement would be much easier.
Can my Debt Settlement amount be included in my bankruptcy?
Your best bet is to cancel your plan, and file bankruptcy. To have both is a bad bet. Most debt settlement claims aren't very useful in the long run, and you'll probably end up bankrupt either way, unless a lump sum is paid. There will be consequences to canceling, but it will probably outweigh the risks of having both.
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.
What are the advantages of a lump sum settlement?
The advantage of a lump sum settlement is that one does not have to pay tax on it. The money has already been paid, so there is no worry about arrears.
How can I change my settlement, after the fact, to a lump sum settlement from a bi-yearly payment in Texas?
You can change your settlement, after the fact, to a lump sum settlement from a bi-yearly payment in Texas at any banks. You can start the process at www.patriotsettlement.com/testimonial-letters.php
Lump Sum Settlement Can Be Sold?
If a person wins a lawsuit, a settlement agreement may be reached that provides income to the plaintiff in one large lump sum, but the timing of payment may be at some time in the future. There may be appeals that take up time before the ultimate settlement occurs. Other awards, like a large lottery win, promise a future lump sum settlement. Divorces may also contain lump sum settlement agreements that are to occur in the future. These lump sum settlement agreements can be bought and sold like assets. Occasionally there is some court involvement if the settlement requires supervision to protect the interests of the settlement holder. The main reason a court might intervene in the sale of a lump sum settlement would only be to protect the person who is to receive that settlement. Perhaps a person is physically or mentally disabled for life and can no longer work. The lump sum settlement provides needed income for that person that may be expected to last for their lifetime. If a settlement holder sells their arrangement to obtain a lump sum of cash right now, instead of in the future, that is a possibility. They will pay a large fee to the company that buys out their settlement. They receive a large, but lesser amount of cash at one time, and they get it right now instead of at some future date. If a lump sum settlement is sold, the payee is no longer the person who will receive the future lump sum. The company that has loaned them the lump sum of cash will receive the large payment whenever it does materialize. The lender gets a big fee plus their money back. It is an investment for them and an immediate windfall for the person who is selling out their settlement agreement. There are many reasons for wanting to sell out a lump sum settlement agreement before it is actually paid. What a person does with their settlement is optional unless the court is supervising the settlement for the recipient.
What is the advantage to taking a workers comp lump sum settlement?
You can read about the advantage to taking a workers comp lump sum settlement at www.workerscompensationinsurance.com. Another good site is www.iowaworkforce.org/wc/settlement.htm
What companies help people obtain their lump sum cash settlement?
There are many companies that will pay a lump sum for a structured settlement. Several of these companies are Stone Street Capital, Peachtree and Fairfield Capital.
If my disability rating is 23 as a result of a lower back injury what is my lump sum settlement?
Your lump sum settlement is determined by factors such as your monthly salary, amount of disability, length of time unemployed, and medical costs.
Lump Sum Settlement?
A lump sum settlement is one that results in a one-time payment rather than a series of payments. They are often used to take the place of payment plans of a indefinite term, such as alimony payments. Rather than making or receiving a payment every month or on some other set schedule, people who choose to use a lump sum settlement pay a larger sum upfront. Though they may pay more initially, people who make a lump settlement often pay less than they wold over time. They also avoid having a constant expense to pay, which can help avoid debt in the event of unemployment or other unfortunate events. Lump sum settlements also have benefits for the recipients. People who have incurred large medical bills, for example, need money to pay for their procedures and can’t afford to wait for a structured settlement to pay out. This can be especially advantageous for newly disabled persons, who may need to make large outlays of cash and are no longer able to work. On the other hand, there are certainly disadvantages to taking a lump sum settlement. When a person opts to take a lump settlement, they forfeit a large percentage of the initial settlement. A lump sum settlement can be as little as half of the original settlement. Recipients, therefore, trade the advantages of immediate cash for the larger amounts they would receive if they could wait to get the full settlement. For this reason, lump sum settlements are chosen much less frequently than structured payouts. If a lump sum is especially large, it may be subject to taxes. In addition, some people may not be able to make such a large payment in one lump sum. For these reasons, a lump sum settlement may not be possible in all situations. However, interested people should discuss their options with an attorney. Some settlement funding companies are able to pay out a lump sum to the injured party; in exchange, they receive all further payments and also charge a fee for their services. It is important to discuss options with an attorney rather than just going off advertisements as reputable companies may have lower fees.
What does a lump sum settlement refer to?
A lump sum settlement refer to receiving money from a structured settlement or payment plan or winnings instead of mouth by mouth you give up a few month in oder to receive a bigger share of the money up front.
How do debt consolidators eliminate debt?
Debt consolidation companies do not eliminate debt. Do not confuse this with debt settlement. Consolidation companies simply merge all of your debts together into one payment a month that you make to them and sometimes lower interest rates. Debt settlement companies, however, negotiate directly with your creditors/collection agencies to settle debts for a lower, agreed upon, lump sum. This in turn gets you out of debt quicker.
What is the definition of debt?
A lump sum of money which is owed to someone/a group of people.
What percentage fee does an annuity settlement buyer usually charge?
Annuity settlement buyers offer you a lump sum in exchange for the future payments you are due to receive. Most of the time these companies offer a 50% - 60% lump sum of the total payments.
What is the largest Illinois work comp settlement?
$825,000.00 in a lump sum settlement see case No. 00WC11909 on the Commission website http://www.iwcc.il.gov
