Common Options To Sell Your Structured Settlement Payments
Sell My Structured Settlement Annuity Payments for Cash
If you have a structured settlement you have a right to sell your payments. Facing a crisis like foreclosure or not having transportation to get to a job, many structured settlement owners choose to sell some or all of their payments.
Does the needs of the injured Change?
When a structured settlement is set up, it’s typically tailored to meet the needs of the injured or surviving person. Unfortunately, sometimes those needs change and the structured settlement owner needs access to his or her money right away. Selling future payments allows someone to get access to the money they need quickly.
Federal and state laws exist to protect consumers against unscrupulous companies. People who need quick access to the funds tied up in a structured settlement turn to purchasing companies to buyout their future payments in exchange for a lump sum. Unfortunately, there are companies out there waiting to prey on people who are in a desperate situation.
When working with a structured settlement buyer, make sure you have all of the end-of-deal fees in writing and no attorney or compliance fees are passed onto you. Bottom line: if your quote says you should get $65,000 for selling your payments that is the amount that should be listed on the check.
Structured settlements are regulated on a national, state and sometimes even local level.
Congress passed the Periodic Payment Settlement Act in 1982, which streamlined the use of structured settlements in personal injury lawsuits. The legislation shielded structured settlement payments from federal, state and local income taxes. Congresses thinking was that by setting up payments over time, individuals would be protected from spending a lump sum too quickly and thus jeopardizing their financial future.
What else require judicial approval?
Federal law, as well as additional regulations in 48 states, requires judicial approval to transfer structured settlement payments. The judge evaluates each case to ensure they meet a “best interest” standard. The judge will ask you a series of questions to make sure you understand the consequences of selling your payments and will be financially secure once the transfer is complete.