by Structured Settlement Watchdog
Restructured settlements are a concept promoted by certain structured settlement factoring companies as part of a “customized solution” to address structured settlement recipients’ actual or promoter-created needs.
The basic options advertised are
- sell all
- sell part, and have some other payment flow with the some or part of the cash proceeds.
The use of the terms “restructured” and “restructured settlement” by factors and promoters is misleading
- When “restructured” is used in connection with “structured settlements” there appears that there is some connection between the two. THERE ISN’T.
- Structured settlements have unique benefits set forth in the tax code.
- To do a so called “restructured settlement” you must (1) sell your structured settlement payment rights AT A DISCOUNT, which might be substantial, BEFORE (2) other products are purchased to create a new payment stream with the discounted amount of money.
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