Selling your structured settlement can be a great way to get cash in your pocket right away. It can help you pay off debt, invest in your future, or buy a new car.
However, it is important to understand the process before you sell your structured settlement. A judge must approve the sale, and it is regulated by state laws.
Benefits of selling your structured settlement
Selling your structured settlement is a great way to get a lump sum of cash, but it’s important to consider if it makes sense for you. You might need money now more than you need future payments, or you may want to spend your lump sum on a vacation or other luxury item.
If you plan on selling your structured settlement, make sure that you work with a reputable company. They should be familiar with the court approval process, have your best interest in mind, and provide a smooth transaction.
Structured settlements are a type of annuity that are paid to plaintiffs who win or settle personal injury lawsuits. These payments are tax-free and do not fluctuate with market changes.
Requirements for selling your structured settlement
Selling your structured settlement is a legal option, but it must be done properly. It requires advance court approval under Federal law and state structured settlement protection acts.
Under these laws, the sale must be in your best interest and the buyer must offer a fair deal. Whether you are planning to sell your entire structured settlement or just a portion of your future payments, the court will weigh your needs before making a decision.
Selling your annuity payments can help you get the cash you need for your current financial needs or investment opportunities. However, it is important to obtain offers from multiple structured settlement buyers and compare their rates. Purchasing companies typically base their charges on a discount rate that can range from 9% to 20%, depending on the purchase company's expectations of future interest rates.
How much money can I expect to receive from selling my structured settlement?
If you're considering selling your structured settlement, it's important to understand how much money you can expect to receive from the sale. It's important to keep in mind that a company that purchases the rights to your payments will have administrative and legal costs and also exist to make a profit.
Many people sell their structured settlement because they need extra money for something like a major medical bill or to pay for emergency home repairs. This type of cash-out can help you avoid loans and credit card debt, which can lead to even more financial stress.
However, all structured settlement sales require a judge's approval and it can take between 45 and 60 days for the court to review your paperwork. You and your lawyer will need to be able to demonstrate that selling your structured settlement is in your best interest and benefit you in the long run.
How long will it take to sell my structured settlement?
If you have received a structured settlement to resolve a personal injury, medical malpractice or wrongful death lawsuit or an inheritance, selling your future payments can give you the financial freedom you need. With a lump sum of cash now, you can make a major purchase or pay down debt or take care of another urgent financial need.
You will need to obtain court approval before selling your structured settlement, so prepare accordingly. Getting the right information and answering the proper questions will increase your chances of getting a judge’s approval, as well as earning a purchase offer above your expectations.
The process takes about 30 - 45 days on average, but can be longer in some states, depending on the laws. You will need to appear in court and answer questions for the judge, who will determine if the sale is in your best interest and will consider how your money will be spent.