These moneybrokers offer to buy your settlement payments and give you the lump sum in cash, after they take a percentage off the top. The sale of structured settlements is so popular because the buyers' profit margins are so high. And the sale of structured settlements is popular among plaintiffs because people like to have a large amount of money all at once, rather than have it doled out to them in yearly increments. For plaintiffs, the sale of their structured settlements can mean the financial freedom to start a business, buy a house, or pay off debts.
The sale of structured settlements is regulated heavily by the judiciary, and each such transaction must be approved by a judge. This regulation on the sale of structured settlements is in place to protect those plaintiffs who are disabled, and therefore depend on the yearly income their structured settlement payments provide.