Settlement Funding

How It Works

We've all seen the ads on TV for\ settlement funding companies. Peachtree and J.G.Wentworth are probably the most viewed.

Settlement Funding is where you get a lump sum of cash in exchange for the future of your settlement (i.e. court judgment settlement set out over time).

The Present Value of your settlement is calculated. Based on this, the settlement company will offer you a percentage of what the present value is.

For an explanation of Present Value check out Money Chimps

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Take a simple example:
You are owed $500. You have been paid 400 so far. The remaining 100 is supposed to be paid out over the next 2 years at 0% interest.