Settlement Funds
Settlement funds are large, sticky deposits that sit on the books for years, and require a back office most treasury departments can't staff. Hudson automates the transaction lifecycle, disbursements, compliance, and reporting.
Land the deal. Skip the back office.
Debt restructuring agencies and court-appointed supervisors process payments and claims for thousands of clients. They need the right financial institution to custody the funds, with an intelligent back office to help administer the programs.
Special purpose dedicated accounts accumulate monthly deposits until a settlement is negotiated and pay creditors according to contractually agreed upon terms.
QSFs, class actions, mass torts. A single court-supervised fund holds the settlement until the plan is approved, then disburses to thousands of claimants.
Enrollment, administration, and disbursements
The nature of consumer debt restructuring transactions requires that consumer funds are held in escrow while creditor negotiations play out over months or years. Financial institutions that can accommodate the business relationship can grow sticky, long-duration deposits.
KYC on the enrolling debtor, virtual account spun up.
ACH, wire, check, or RTP.
Funds held in dedicated accounts within a virtual sub-account structure.
Creditor payouts processed for approved and verified settlements.
One settlement with thousands of claimants
Court-ordered allocation, tiered claimant disbursement, and clean tax reporting run end to end so your team can win the deposits without scaling the operations team.
Court order in, settlement account opens with the right tax setup.
W-9 / W-8 collection, identity verification, tiered allocation matching.
Based on conditions in the settlement agreement.
Per-claimant 1099s auto-generated and distributed.
Specialty deposit verticals
Frequently asked questions
Hudson administers consumer debt restructuring and settlement programs ($5K-$50K per account, 24-48 month average tenure) as well as court-ordered multi-party claim distributions like QSFs, class actions, and mass torts ($10M-$500M+ per fund, 3-7 year average tenure).
Hudson manages claimant onboarding at scale, including W-9/W-8 collection, identity verification, and tiered allocation matching, so thousands of claimants can be processed against one settlement fund.
Yes. Per-claimant 1099s are auto-generated and distributed as part of the tax reporting workflow once disbursements are processed.
Lien resolution is built into the disbursement workflow, applied automatically based on the conditions specified in the settlement agreement before funds are released to claimants.
The court order is uploaded, and Hudson runs account setup with the correct tax structure, followed by claimant onboarding, allocation, disbursement, and tax reporting end to end.
Hudson handles consumer onboarding with KYC, automated draft schedules (ACH, wire, check, or RTP), escrow custody within virtual sub-accounts, and creditor disbursements with a full audit trail.
Consumer debt restructuring accounts typically run 24-48 months, while court-ordered multi-party settlement funds typically remain open for 3-7 years, making both sticky, long-duration deposits.
Ready to grow deposits?
Check out how Hudson solves for the money movement and ledgering complexity that lives with Property Managers.
