If you`re struggling with debt or money shortages, a sale of your structured settlement payments may be a solution. You can receive a lump sum cash to help you reach financial goals you never thought possible.
A court must approve the sale of your structured settlement. It is therefore important that you find a trustworthy buyer with your best interests in mind. This can be achieved by working with a factoring firm that is familiar with the secondary market and has a track record of protecting 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. Avoid companies that offer high discounts and charge excessive 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. This discount rate is often between 9% and 18%.
Why sell your settlement?
Some people decide to sell their structured settlement payments because they need the money faster than expected. Some people want the cash to be used for other purposes such as paying off high-interest debt.
No matter what your reason for selling, there are many disadvantages to your settlement.
For one, it`s not guaranteed that you`ll get a good return on your 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.
Purchasing companies, also called factoring companies, buy structured settlements and annuities in exchange for fast cash at a discount rate. This discount rate is based on the buying company`s expectation of future interest rates.
Court Approval
If you are interested in selling your structured settlement, you will need to obtain court approval. This is an important step to make sure you don`t jeopardize your financial stability.
A judge will likely approve your sale if it meets all applicable state and federal laws. However, a judge may deny your sale if he or she believes that the transfer is not in your best interest or is likely to cause you or your dependents financial hardship in the future.
After you have signed and filed the paperwork with the court it may take up to six weeks for them to review and decide on 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.
Your structured settlement can be sold in its entirety, partial, or a portion of future payments. Each option is available at a cost, so you`ll want to create a financial plan that fits your needs.
Several factoring companies offer to buy your payments at a discount rate. You will get the amount you paid back depending on how low the buyer is willing to discount your payments.