Settlement Funding

When an individual settles a lawsuit or worker’s compensation case, the money is often paid out through a structured settlement. The structured settlement outlines a plan for paying out the total awarded amount of money over a long period of time. That means that a “million dollar settlement” is quickly reduced to smaller payments that are received over many months or years. Payments may be made annually, quarterly, or periodically, but once the settlement agreement is reached, the terms of the agreement do not change.
Through the years as structured settlements have become more commonplace, recipients have often found themselves in need of money faster than it is being paid out. This may happen as a result of unanticipated medical needs or a loss of income, or it may be that more money is desired to fund the purchase of a home or other investment. When these types of situations arise, people turn to companies like Fairfield Funding, that offer settlement funding.

Simply put, settlement funding is when a settlement recipient sells the rights to either their total award or a small portion of their award in exchange for a lump sum received immediately. Typically companies in the settlement funding business, such as Fairfield Funding, offer to purchase the structured settlement payments and will pay for the administrative and legal costs associated with the transfer. Settlement funding options are available in most states and are closely regulated by Federal and State statutes to protect both the settlement funding company and the recipient. After the transfer is complete, the recipient gets the lump sum of money they want now rather than waiting on their smaller payments to be paid out.