Hi folks, J.G. Wentworth here with a list of some common terms associated with structured settlements. If you are currently receiving regular payments from a structured settlement, and are considering selling these future payments for cash, feel free to use these word definitions as a guide to help you understand what to expect from any transaction.
Court Order – A legally binding ruling issued by a judge or properly empowered administrative officer.
Court Order Attorney – The attorney that files a petition for court approval of a structured settlement payment transfer.
Full Purchase – A transaction in which the customer sells their entire structured settlement payment stream.
Gross Purchase Price – The sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights, before any reductions for transfer expenses or other deductions are made.
Legal Representative – A person acting with legal authority to execute a contract for an individual.
Lump Sum/Lump Sum Payment – A sum of money paid in a single installment.
Net Present Value – The amount of cash today that is the equivalent in value to cash to be received in the future, based on a specific discount rate.
Net Purchase Price – The sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights, after any reductions for transfer expenses or other deductions are made.
Partial Purchase – When a customer sells only a portion of their structured settlement payment stream.
Payment Stream – Payments received periodically from a structured settlement.
Periodic Payments – Payments that are paid or received regularly, typically on a monthly or quarterly basis.
Purchase Price – The amount that the purchaser is offering to pay for the purchased payments.
Settlement Agreement – An agreement between parties to actual or potential litigation, under which the parties agree to a resolution of the dispute.
Stream of Payments – Payments received periodically from a structured settlement.
Structured Settlement Agreement – The agreement, judgment, stipulation, or release which dictates the terms of a structured settlement, including the right of the payee to receive periodic payments.
Structured Settlement Obligar – The party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement.
Quote – A stated price for assets or services.
Have questions about any of the structured settlement terms described here? Or do you have other questions related to your own structured settlement agreement and specific financial situation? Whatever the question, please feel free to give J.G Wentworth a call anytime at 877-227-4713.