If you`re struggling with debt or money shortages, a sale of your structured settlement payments may be a solution. It can provide you with a lump sum of cash, so that you can achieve financial goals that otherwise would have been out of reach.
Selling your structured settlement requires court approval, so it is important to find a buyer who is reputable and has your best interest in mind. You can do this by working with a factoring company that is knowledgeable about the secondary market and has a good track record of protecting your financial interests.
How It Works
You can sell your structured settlement payments for a lump sum of cash. This will help you pay for urgent financial needs such as home renovations or medical bills.
Always shop around to find a trustworthy buyer. You want to avoid companies that charge high discount rates and fees.
A reputable company will give you multiple quotes to choose from, including a partial sale.
The buyer applies a discount rate to the remaining value of your structured settlement payment rights. The discount rate can be between 9% to 18%.
Why sell your settlement?
People sell structured settlement payments when they are in dire need of the funds faster than anticipated. Others want to use the cash for other purposes, such as to pay off high-interest debt.
No matter what your reason for selling, there are many disadvantages to your settlement.
First, you don`t know if you will get a good return on investment. You may also lose some of the money due to fees.
Finding a Buyer
A structured settlement is often awarded to someone who wins a personal injury lawsuit or wrongful death case. These payments are made in periodic installments and provide financial security. They can also be used to pay medical bills and other expenses.
If you need cash immediately, selling your settlement may be a good option. It is important to ensure that you get the most value for your money when working with a highly-rated buyer.
Factoring companies are buying companies that purchase structured settlements or annuities to get fast cash at a discounted rate. The discount rate is determined by the buyer`s expectation of future interest.
Court Approval
If you are interested in selling your structured settlement, you will need to obtain court approval. This is a necessary step to ensure that you are not jeopardizing your financial stability.
A judge will likely approve your sale if it meets all applicable state and federal laws. A judge can deny your sale if it isn`t in your best interests or likely to cause financial hardship for you or your dependents in the future.
Once you have signed the paperwork and filed it with the court, it can take three to six weeks for the court to review it and set a hearing date. Once the court approves your transaction, Liberty Settlement Funding will complete the transfer and send you your lump sum. It can be sent by wire transfer, direct deposit or by check.
How to Get Your Money
If you need a lump sum of money to cover an unexpected expense, selling your structured settlement payments can provide that needed cash. However, it`s important to know that the sale of your structured settlement payments is a legal process and requires court approval.
You can sell your structured settlement in full, a partial, or a percentage of its future payments. Each option is available at a cost, so you`ll want to create a financial plan that fits your needs.
Many factoring companies will buy your payments at a discounted rate. The buyer`s discount rate, along with its fees, will determine how much you get back after the sale.