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December 19, 2012

Does Anybody Buy Structured Settlement Payments From Small Structured Settlements?

by Structured Settlement Watchdog®

While there are companies that buy structured settlement payment rights from small structured settlements, such transactions make little sense due to the costs involved. Because there are certain set costs associated with a structured settlement factoring transaction such as fees paid to lawyers for the court hearings mandated by state structured settlement protection acts, certain administration fees charged to the buyer by the annuity issuer, plus a profit margin for the buyer and /or buyer's investors to account for, the seller would likely have to sell more than they need to raise cash.

For example, I received a call in the last few months from a woman who was soliciting bids to raise $2,000 to pay for a funeral of one of her parents. The amount she'd have to sell was in well in excess of what she needed due to the attendant transaction costs. It did not seem to make sense. I suggested that the annuitant hold off selling her structured settlement payments, wait for the payments which were due to arrive a short time after and work with the funeral home to come up with better payment arrangements. 

Note: "Buyer" in this context refers to a buyer of structured settlement payment rights from annuitant who owns them.

Last updated August 29, 2021

Posted at 11:35 AM in Albany New York Structured Settlements, Baltimore Structured Settlements, Bethesda Structured Settlements, Boca Raton Florida Structured Settlements, Boston Structured Settlements, Bridgeport Structured Settlements, Bronx New York Structured Settlements, Brooklyn New York Structured Settlements, Broward County Structured Settlements, Buffalo New York Structured Settlements, Buyers of Small Structured Settlements, Chevy Chase Structured Settlements, CT Structured Settlements, Dallas Fort Worth TX Structured Settlements, Owings Mills Structured Settlements, Secondary Market Structured Settlements, Structured Settlement Factoring, Structured Settlement Payment Rights, Structured Settlement Protection Acts, Structured Settlement Tips For Lawyers, Wisconsin Structured Settlements, WV Structured Settlements |

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Guide to Structured Settlements 2023

  • What is a Structured Settlement? What You Need to Know
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  • Structured Settlement Annuity Companies 2023
    Which life insurance companies issue structured settlement annuities going into 2023? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information.
  • Treasury Funded Structured Settlements
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  • Structured Settlement Payments | Types of Structured Settlements
    Ways You Can Structure Your Settlement Payments. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
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  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
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  • Firmwide Qualified Settlement Funds Debunked
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