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
If you have a structured settlement, it was likely designed to provide you with money for a specific reason. 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 typically based on what they expect the settlement to be worth in a year.
It is up to you to decide whether or not to accept one of these offers. This is an important financial decision, and you need to be sure that it is the right one for you. It can impact your retirement plans, Social Security benefits and tax obligations.
What you can expect
Structured settlements offer a safe and reliable way to receive a regular source of income. These are especially useful if you have a chronic condition that requires extensive medical attention.
Nevertheless, there are times when you need cash immediately. 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. However, it`s critical to make sure that selling your structured settlement is the right decision for you.
It`s important to deal with a reliable company when selling your structured settlement. They`ll take care of the process and help you understand 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.
Cashing out a structured settlement involves working with a factoring company, which purchases your future payments in exchange for a lump sum of cash. This process can take up to 45 days, according to Steve Sexton, CEO of Sexton Advisory Group.
After an offer has been accepted, the factoring firm files a petition to court for approval. 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
Structured settlements can provide financial stability for a long time but sometimes people need cash right away. Selling your structured settlement is a great option in these cases.
To sell your structured settlement, you must first receive court approval in your state. This is required by federal and state laws that encourage structured settlements and protect you.
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. This is why you`ll typically receive less than the full value of your remaining payments.