Structured Settlement Funding Transactions
A structured settlement factoring transaction describes the process of transferring the rights of future structured settlement payments from the annuitant to a second party (a funding company). Many people call this process "selling a structured settlement."
A structured settlement consists of one or more future payments, that a claimant accepts to resolve a personal injury tort claim.
Individuals who receive structured settlement payments may decide at some point that they need more money in the near future than the structured settlement provides over time. The reasons are varied but can include unforeseen debt, medical problems, education, and housing problems. In order to meet their financial needs, individuals choose to transfer their payment rights to structured settlement factoring companies for a lump sum.
