Settlement Solutions

Written by Jacey Harmon
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There are a variety of different settlement services. Mutual funds and stockbrokers may use settlement services to process stock trades. Banks use settlement services to handle the large volume of transactions that banks are responsible for. Settlement services are used by lawyers and individuals to settle lawsuits. This article will focus on settlement services for lawsuits.

Types of Settlement Services

The most obvious type of service involved with lawsuit settlements are provided by lawyers. Lawyers will handle court filings and proceedings for clients. Lawyers will also be the negotiator for the plaintiff in deciding and designing a settlement. A premium should be placed on finding and using a good lawyer when going through a lawsuit.

Since lawsuits can last for an extended period of time, there are services available that will advance money ahead of an expected settlement. Only the soundest lawsuits will be able to get an advance on an expected settlement. Since a settlement is not guaranteed, funding companies are very selective in providing advances. Advances on settlements are most commonly used to provide for income, especially in the case of personal injury lawsuits.

Once a settlement is agreed upon, the reward may be paid out over a period of time. This type of settlement is called a structured settlement. In cases settled with structured settlements, one can request advanced funding of future payments. Unlike advanced funding of an expected settlement, advanced funding of a structured settlement does not depend on the strength of the settlement. Structured settlements are typically guaranteed by an annuity or government bond; this ensures that the advanced funding company will get their monies back. That guarantee allows funding companies to work with any type of structured settlement.

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