Understanding Partial Payouts and
Structured Settlement Buyouts

Mar 17, 2010

When you win a lawsuit, you will receive a settlement. This settlement is designed to help you to pay off your hospital or medical bills and to help you to pay all of the bills that are piling up while you are unable to pay them due to not being able to work. Unfortunately a settlement isn’t always deposited in a lump sum in your bank account. You may get a structured settlement where you are to receive a specific amount of money once a month or once a year. While this may help the company who has to pay you to be able to pay you in a way that doesn’t bankrupt them, it doesn’t help you make ends meet. What, then, can do you do?

Structured Settlement

A structured settlement sale is a way for you to get the money that you should receive from the company that you won the settlement against in one lump sum. Basically you sell your right to the settlement to a company who specializes in buying them. They, in turn, then give you cash in one lump sum. The amount that you would receive is always less than what you would receive if you were to wait for all of the money to come from the defendant, but it is a way to get the money that you need now. But did you know that you do not need to sell all of your settlement?

Partial Payouts and Structured Settlement Buyouts

It is possible to sell only a part of your settlement. This is called a partial structured settlement buyout. Basically what that means is that, instead of selling all of what is owed to you to the company, you are giving them the right to a piece of what you are owed. There are a number of ways that this can work. When you sell, for instance, half of your settlement, you may be able to decide if you want to receive half less money each time you are paid, or if you want the money to stop before it was designed to, only giving you half of what you are owed.

Why To Sell

Some people wonder what they would do with the money if they were to sell part of their settlement. For the most part, people tend to take the money in one lump sum in order to pay off bills, but there are many other reasons why someone would want to sell all or part of their settlement. Some want to do it in order to strengthen their investment portfolio, others want to do so in order to help them to supplement the loss of a job, and some want to have their incoming income from the settlement active but need to sell in order to pay bills or to go on a vacation or something similar. If you’re interested in selling all, or part, of your structured settlement, Lawsuit Hotline can help you.