Secrets You Didn't Know About Selling Structured Settlements
Why Not to Sell Structured Settlement?
When deciding whether or not to sell your structured settlement, there is one question sellers need to ask themselves, “Will selling my structured settlement improve my life in the long-term?” The key phrase here is ‘long-term,’ as a shopping spree or expensive vacation can most certainly improve one’s life in the short-term, but are not good reasons to sell a structured settlement.
On the contrary, if you are receiving lottery winnings in the form of a structured settlement, you may be able to sell your winnings for a lump sum payment for any reason. You’ve won the lottery.
why not use it for a well-deserved trip?
But back to the case of a structured settlement--you may be thinking, “it’s my money and I should be able to choose how I spend it.” The fact is, a judge must sign off on the reason for selling your structured settlement payments. The only reason a judge will allow you to sell is if he or she believes it is in your best interest. For example, if your reason is you want to buy a new sports car, even though you already have a car, a judge will typically not sign off on this. However, if you don’t own a car and need to purchase one so that you can take a better-paying job that where public transportation is non-existent, this could be considered a valid reason for selling.
Another thing to consider is whether or not the lump sum payment will be of direct benefit to you, the owner. Altruistic endeavors, such as helping out a family member in financial trouble, may seem like an excellent reason to sell a structured settlement, but since the owner will not be the direct beneficiary of the lump sum payment, it is less likely a judge will sign off on such expenditures.
Is There any other recommended options?
At Structured Settlement Selling, the well-being of our customers is our #1 priority, and as such, if we believe selling your structured settlement is not in your best interest, we will let you know help you discover other options. The following are examples of instances in which we have counseled customers against selling their structured settlements:
1-Performing home renovations for aesthetic purposes
2-Purchasing a new wardrobe
3-Buying a car for a child as a graduation present
4-Taking a year off work to travel the world
While many of these are noble and worthwhile expenditures, none of them provide a direct benefit to the owner of the structured settlement or improve their quality of life in the long-term.