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Risks of Trading Your Settlement Payments for a Lump Sum

Companies that buy structured settlement payments market fast cash, but the trade is permanent and can leave you with much less than your settlement is worth over time. Here is what the Consumer Financial Protection Bureau says every seller should understand first — the costs, the tax questions, the court approval process, and the alternatives worth exhausting before you sign.

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Legal Protections for Money Saved for Debt Settlement

If a debt settlement company tells you to save money toward a future lump-sum settlement, federal law gives that money real protection. The funds remain yours, the account must be run by an independent third party under your control, and you can withdraw at any time without penalty. Here is how those protections work, what they do not cover, and what Colorado borrowers should do before signing anything.

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