What is a Structured Settlement Factoring Transaction

Imagine going through a long, drawn-out medical malpractice case and winning a multi-million dollar verdict. Even after paying off your attorney and other fees and expenses, you are left with more money than you ever thought you would see in your life time. You are about to make plans to pay off all of your debts and move into a big, new house when you learn one troubling detail from your attorney. Instead of getting one lump sum of $1,000,000, your attorney tells you that the terms of the settlement call for 20 annual payments of $50,000 each. That is nice, but hardly what you need or expected.

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What are the Pros and Cons of Structured Settlements?

A structured settlement is when a lawsuit is resolved out of court by one side agreeing to pay the other over a period of time in a planned format that both sides have agreed upon. This is a common way to settle a case in a way that is beneficial to both sides. However, there are definitely advantages and disadvantages to going the structured settlement route.

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