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The Two Sides of Structured Settlements

By Jason M Rigler

Creating and Factoring. Structured Settlement Planners and Brokers assist injury victims and lawsuit winners in the process of structuring a financial settlement to pay out over time in a manner best suited to meeting future financial needs. Structured Settlement Factors assist individuals receiving payments over time from a structured settlement in the process of restructuring the payout, usually obtaining an immediate lump sum at a discounted rate.

Wherever you are in the process, there is a wealth of information available on the internet to help you on your way. www.settlementplanners.org is a great resource “to assist injury victims, claimants and attorneys in resolving their legal financial claims, and to advocate the injury victims' right to choose settlement planning advisors and financial and guarantee providers." Their efforts reach all the way to Washington DC, standing in the political and legal arena for the rights of claimants to have the best possible access to financial compensation. The NSSTA is also on the creation side of structured settlements advancing “the use of structured settlements as a means of using periodic payments to resolve personal injury claims, workers compensation, and other types of claims.”

The Factoring side is represented by a handful of funding companies and an army of factoring brokers. While there is a larger organization, referred to as NASP, considered to be the watchdog of the industry, there is very limited information on the organization itself. Structured Settlement factors provide “cash now” for future payments, in essence, restructuring or in some cases, dismantling, the previously approved payout in exchange for a lump sum of cash sooner. The services provided can be timely in the case of dire financial need, but the steep discount is a major drawback for those considering their options. Go to here for more information.

Two very different industries, both offering a service to the same group of people, from opposite sides of the product. One group creates structured settlements in the best interests of claimants, the other group factors the current payout to meet immediate financial needs. Whichever service you need, there is plenty of information on the internet to help you along the way.

Jason Rigler "Settlement Advocate" and consultant for Prosperity Partners Customer Service Department.

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