You may need immediate medical attention, cash to pay for college tuition or debt repayments, and your structured settlement might need to be sold.
The process of selling your structured settlement involves transferring your rights to future payments to a third party in exchange for a lump sum of cash. Your remaining payments and the terms of your sale agreement will determine how much you receive.
How it works
Structured settlements are likely to be designed to give you money for a specific purpose. If that need has changed, or if you just want to get out from under the payments, you may be able to sell your structured settlement and get a lump sum of cash.
This type of sale is usually possible online. A company is interested in buying structured settlements will need to receive some basic information.
The company will then contact you and give you some quotes. These offers are usually based on the amount they anticipate the settlement will be worth within a year.
You will need to decide if you want to take one of the offers or not. This is a significant financial decision that you will need to make. It can impact your retirement plans, Social Security benefits and tax obligations.
What to expect
Structured settlements are a reliable and safe way to get a steady source of income. These are especially useful if you have a chronic condition that requires extensive medical attention.
There are occasions when you may need immediate cash. This can be due to unexpected bills, debts or financial hardships.
The ability to sell your structured settlement payments is a lifesaver, and it can give you the freedom to do what`s most important to you. It is important to ensure that you make the right decision when selling your structured settlement.
It`s important to deal with a reliable company when selling your structured settlement. They will take care of everything and explain how it works. Then, they`ll arrange a court date so you can get the green light to transfer your settlement payments.
How long it will take
A structured settlement is a stream of periodic payments awarded to you for personal injury or wrongful death. These payments will help you to meet your future expenses.
To meet financial emergencies or to take advantage of new opportunities, you may choose to sell your structured settlement. These could include a college tuition or wedding, a home purchase, medical expenses, or other significant financial problems.
A factoring company is required to cash out a structured settlement. They will purchase your future payments in return for a lump sum. This process can take up to 45 days, according to Steve Sexton, CEO of Sexton Advisory Group.
Once an offer is accepted, the factoring company files a petition for approval in court. The sale will be reviewed by a judge to ensure it is in your best interests and those of your dependents.
What you can expect to get
While structured settlements provide financial stability over a long period of time, sometimes individuals need a lump sum of cash immediately. When these situations arise, selling your structured settlement can be a great solution.
You must get court approval from your state before you can sell your structured settlement. Federal and state laws, which encourage and protect structured settlements, require this approval.
How much you can expect to receive will depend on a few factors, including the discount rate and fees. It`s important to shop around and get quotes from several companies before making a decision.
Factoring companies calculate the value of your structured settlement payment future payment by using a discount rate similar to what you pay for a loan. The discount rate accounts for the risk the company will lose by not having your money available to invest immediately. You will typically receive less than the total value of your remaining payments.