WHAT ARE  THE BENEFITS OF STRUCTURED SETTLEMENT PAYMENTS

As a general rule, because the structured settlement payments arise out of claims for “personal injuries”, or “wrongful death” actions, they are given a special status, tax treatment, and are generally exempt and protected from almost all creditors.  For example:

(1) The payments are “tax free” to the injured party or their heirs;

(2)  The payments ARE exempt from being attached or garnished to pay off liens, judgments, and MOST all other obligations that may come up against the recipient of the payments;

(3)  This exemption also often extends into bankruptcy, where in most cases,not even a bankruptcy trustee can take the structured settlement payment stream to pay off creditors, in the event an injured person files for bankruptcy.