Who Can Benefit from Selling Structured Settlement Payments?

Structured settlements and annuities are often used to provide financial security for individuals who have experienced a personal injury or wrongful death. In some cases, however, the terms of the settlement may not meet the needs of the beneficiary. In these cases, it may be beneficial to sell all or part of the structured settlement payments in exchange for a lump sum of cash. A structured settlement purchasing company, also known as a factoring company, can provide this service.

They can offer an immediate lump sum of cash in exchange for entitlement to future payments or parts of future payments. When considering selling your structured settlement payments, it is important to understand the process and the legal requirements involved. You must first get court approval before you can withdraw your payments, either in part or in full. It is also important to remember that you are not only looking for the discount rate of the quote you get, but also the quality of the service of the structured settlement buyer. It is important to find a company you can trust. Structured settlements became popular in the 1980s, when new tax laws and regulations in the United States made all personal injury and wrongful death settlements non-taxable.

Most people don't sell their entire structured settlement. Instead, they sell a portion of their payments. They could decide to sell six-month payments, which would leave them without a regular income stream from their structured settlement during that time period. Most people consider selling when they want to make an investment, such as buying a home, or when they are in financial distress. In other situations, people regret selecting structured settlement rather than lump sum payment and want to overturn their decision.

If you see any of the following situations, you should stop the process immediately and look for another buyer:

  • The buyer is pressuring you to sign quickly
  • The buyer is offering an unusually high discount rate
  • The buyer is offering an unusually low discount rate
Once you have found a reputable buyer, you will need to sign a contract and submit it to court for approval. Then, once the contract is signed, the buyer submits the required documentation and arranges a court hearing. Legal requirements for the sale of a structured settlement can delay the buyer's receipt of money, which can affect the final offer. If you are interested in selling your annuity or structured settlement payments, a representative will provide you with a free, no-obligation quote. While it may take some time and involve going to court, selling structured settlement payments is easier than it seems.

Selling all or part of your future structured settlement payments may be the best way to get a lump sum of money for an unexpected expense, such as a large medical bill or an urgent home renovation. In general, when you sell your payments to a structured settlement purchasing company, such as RSL Funding, you receive your prize money up front and ahead of schedule in the court's adjudication schedule. With that in mind, consider the amount of money you're willing to sacrifice and for how long. In all cases, you should not feel restricted by the payment schedule of your structured settlement. If the need is great enough to justify selling your structured settlement payments, seek information from a proven and trusted buyer. As a trusted structured settlement buyer in the secondary annuity market, CBC Settlement Funding can provide you with a lump-sum cash advance for all or part of your structured settlements.