People sell structured settlement payments for various reasons. You may need quick cash to deal with an urgent family crisis or medical emergency, or you might be looking for an opportunity.
This process is governed by state laws to ensure that your sale is done in your best interest. Once a potential buyer is identified, their company will arrange a court date so as to seek court approval for your sale.
Why sell your settlement?
People sell structured settlements for various reasons. Some people need quick cash to pay medical bills or to avoid foreclosure of their home. Others want to send their children to college, but the tuition costs have increased since they received their settlement.
A structured settlement can also be used as an investment in a new business venture. This requires funds to cover overhead costs, hire employees, purchase equipment and run marketing campaigns.
A structured settlement recipient may sell all or part of their future payments in exchange for an upfront cash payment. This is known as a structured settlement factoring. Such an action must first be approved by a judge; though doing so will result in financial losses for recipients; under certain conditions it may make sense; therefore it’s essential that they understand this process thoroughly and consult an experienced attorney prior to making their decision to sell structured settlement payments.
Get a Lump Sum
When selling structured settlement payments, the process is highly regulated under both state and federal law. Each sale must be approved and evaluated by a judge in order to ensure that it follows basic financial logic. This protects the seller while also ensuring the buyer is reliable and legitimate.
Cashing out part of their structured settlement payments may help pay for emergency medical care, reduce debt or buy a house more easily. When selling your settlement payments you won’t owe taxes on what is received – only on any additional monies received through earnings from these sales.
You can find a factoring firm with competitive quotes, a good reputation, and a company that will answer all your questions, make you feel comfortable, and efficiently execute court-ordered transfer. Comparing quotes is an excellent way to choose the best factoring company. Be sure to compare each company’s discounts, fees and terms to find the right partner.
Minimize Fees
Some companies promise to save you money by selling your structured settlements for cash. However, they do not disclose that the money received is only pennies per dollar compared to what would have been paid had your settlements not been sold.
You can reduce your fees by getting multiple quotes before settling on a buyer. If you can, sell only a part of your structured settlement payments instead of the whole amount. This will help reduce fees.
Cashing out a structured settlement can be a good idea when you have urgent needs, such as paying for college tuition or high-interest debts. But make sure it’s for legitimate purposes and that the judge approves of it first – financial statements and letters from doctors can help sway their decision in your favor.
Request a Quote
Starting the process of selling structured settlement payments online is straightforward and can be completed at your own pace. First, collect quotes from several factoring companies and compare their offers before choosing the most favorable offer based on future interest rate projections or additional fees levied by these factoring companies.
Your purchasing company will set up a court date to have a judge approve the sale. This step is required under state and federal law in order to protect your interests.
Cashing out a structured settlement would mean sacrificing future tax-free payments which could be used to reduce debt or increase the number of hours worked at your current job. Other viable options include applying for government assistance or creating an emergency fund.