Case Studies in Annual or Monthly Payments
College Tuition Covered
Thanks to the secondary market, a young Washington man is now going to college. At age 18, he sold a series of annual payments from a structured settlement resulting from a personal injury case. He used the money for college tuition and living expenses, something his divorced parents were not in a position to help him pay for.
Out of Work & Out of Debt
Without the secondary market, one unemployed 36-year-old Washington State resident would still be deep in debt. Unable to find work, he and his wife were barely keeping their heads above water on her salary alone. He sold several monthly payments from a personal injury settlement and used the $42,000 to get up to date on past-due child support payments to his ex-wife and to pay off all of his credit card debt and an auto loan.
Paying for Chemotherapy
An unmarried, 30-year-old Arizona man, with no children lost the use of his legs in an accident. His structured settlement provided for $1,000 monthly payments over a number of years. While recovering from the accident, he was diagnosed with cancer. He had no health care insurance and could not qualify for Medicaid under new Arizona rules that exclude childless adults from its indigent health care system. He sold 10 years of his $1,000 monthly payments for approximately $100,000 to pay for his chemotherapy.
Staving off Homelessness
An Arizona man with epilepsy relied on his wife to be the family breadwinner. When she lost her job in the recession, she promptly returned to school to train as a veterinary assistant. Before she could find employment, she was the victim of a criminal assault. She lived, but a broken back and wrist kept her from working for a long while. During that time, the couple had to live off credit cards and got behind in their rent. She sold payments of $42,000 due to her in 2022 and received $12,000. This allowed the couple to pay off their debts, get current on the rent, and even pre-pay the rent. Now instead of being homeless, the woman now has a new job, a secure place to live, and less debt.
A 50-year-old Native American woman and her extended family have land on the reservation, where they grow hay. She was entitled to monthly payments of $200 from a structured settlement. With the current high prices for hay, she knew that owning instead of renting a tractor would improve the farm’s profit margin. She sold 13 years of her monthly payments to raise $15,000 for the purchase of a tractor. The increased profit on the hay more than made up for the discount taken when she sold her payments.