Many individuals who are beneficiaries of structured settlements consider selling some or all of their future payments for immediate cash. The reasons for doing so are varied, but the general process remains consistent across states. Numerous settlement-purchasing companies offer various plans to buy structured settlements and provide a lump sum payment. These plans can be beneficial for debt repayment, financing education, or capitalizing on business opportunities.
Given the number of companies purchasing settlements, it’s crucial for sellers to consult with their attorney and financial advisor before choosing a specific company. Online research can reveal numerous structured settlement companies. Key factors to consider include the interest rate charged, the buyer’s financial stability and reputation for fair dealing, and their relationships with insurance companies or the entities responsible for the structured settlement payments.
Since the immediate cash payout is always less than the total value of the settlement, sellers should actively seek a buyer offering the highest possible payout. Costs associated with selling a structured settlement can include service fees, closing fees, broker fees, and legal expenses. Ultimately, the responsibility for maximizing the value from the sale rests with the seller. This includes understanding any state-imposed waiting periods and all relevant state and federal regulations governing such sales.
A court order is legally required before the seller can receive the cash payout. Court approval hinges on the seller demonstrating that the sale is the most viable option for achieving liquidity. Brokers with expertise in court procedures related to structured settlement sales can provide valuable assistance to the seller and their financial advisor. The entire process, from application to receiving funds, can take up to sixty days, encompassing application submission, document signing, and legal formalities.