sell my structured settlement payment | sell my structured settlement

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27 Jul, 2023
sell my structured settlement payment | sell my structured settlement

sell my structured settlement payment- If You're Someone Who Receives Periodic Payments From A Structured Settlement, You May Find Yourself In A Situation Where You Need A Lump Sum Of Cash Immediately. Whether It's For A New Investment Opportunity, Paying Off Debts, Or Covering Unforeseen Expenses, Selling Your Structured Settlement Payment Can Be A Viable Option. However, This Is A Significant Financial Decision That Requires Careful Consideration. In This Comprehensive Guide, We Will Walk You Through The Process Of Selling Your Structured Settlement Payment, Its Benefits, Potential Drawbacks, And Important Factors To Consider.

Understanding Structured Settlement Payments


  • What Is A Structured Settlement?
  • How Do Structured Settlement Payments Work?

Reasons to Sell Your Structured Settlement Payment


  • Immediate Financial Needs
  • Investment Opportunities
  • Debt Settlement

The Selling Process: Step by Step


  • Research And Gather Information
  • Choose A Reputable Buyer
  • Obtain A Quote
  • Seek Legal Advice
  • Court Approval And Documentation

Benefits of Selling Your Structured Settlement Payment


  • Access To Lump Sum Cash
  • Financial Flexibility
  • Meeting Life's Demands

Potential Drawbacks to Consider


  • Loss Of Guaranteed Income
  • Tax Implications
  • Long-Term Financial Planning

Factors to Consider Before Selling


  • Financial Situation
  • Credibility Of Buyer
  • Legal And Court Procedures

Finding a Reputable Buyer


  • Researching Buyer's Background
  • Reading Reviews And Testimonials
  • Seeking Professional Recommendations

Obtaining a Quote


  • Requesting Multiple Quotes
  • Understanding The Offer
  • Negotiating The Deal

Seeking Legal Advice


  • Understanding Legal Implications
  • Reviewing The Contract
  • Ensuring Fairness And Transparency

Court Approval and Documentation


  • Filing The Petition
  • Court Hearing And Approval
  • Completing The Transfer

Tax Considerations


  • Taxable Portions Of The Payment
  • Tax Planning And Reporting

Planning for the Future


  • Creating A Financial Plan
  • Investing Wisely
  • Building A Safety Net

The Importance of Timing


  • Choosing The Right Moment
  • Avoiding Hasty Decisions

Understanding the Long-Term Impact


  • Assessing Future Financial Needs
  • Weighing Pros And Cons

sell my structured settlement payment


sell my structured settlement payment | sell my structured settlement

You Can Sell Some Or All Of Your Structured Settlement Payments To A Factoring Company For Immediate Cash. Although You Must First Obtain Court Approval, A Structured Settlement Buyer Has The Legal Right To Cash In Your Future Payments – Either In Part Or In Full. Depending On The Terms Of Your Structured Settlement, You May Also Be Able To Sell The Survivor Benefits.

Key Takeaways


  • Selling Your Structured Settlement Allows You To Convert Its Periodic Payments Into A Single Lump Sum Of Cash.

  • The Amount You Receive Will Be Less Than The Total Value Of The Scheduled Payments.

  • The Structured Settlement Buyer's Discount Rate — Including Its Fees — Will Affect How Much You Get.

  • Structured Settlements Are Thoroughly Regulated By Both State And Federal Laws, And Any Structured Settlement Sale Requires A Judge's Approval.

Structured Settlements Are Carefully Regulated Through Federal And State Laws, But These Strict Regulations Should Not Be Viewed As Evidence That Selling Your Structured Settlement Will Negatively Impact Your Finances. Conversely, The Ability To Receive A Lump Sum Of Cash By Transferring Your Payment Rights Can Help You Achieve Financial Goals That Would Otherwise Be Out Of Your Reach.

How to Sell a Structured Settlement: Key Considerations


If You Are Considering Selling Your Structured Settlement Payment, We Recommend That You Enlist The Help Of A Trusted Attorney Or Financial Advisor With Experience In The Structured Settlement Secondary Market. They Will Help You Find A Reliable Factoring Company With A History Of Protecting Its Clients' Long-Term Interests.

Pro Tip

  • Check With Your State Attorney General's Office Or Consumer Protection Department To Make Sure The Factoring Company You Choose Has No Complaints On File.

The Terms Of Your Settlement And The Laws Of Your State Will Determine Whether You Can Sell Your Payments. State Laws Covered By The Structured Settlement Protection Act Are Intended To Protect Settlement Recipients From Unethical Structured Settlement Buyers. Your Sale Must Also Be Approved By A Judge For Your Protection.

All Structured Settlement Sales Require A Judge's Approval. The Judge Will Consider The Terms Of The Sale — Whether You Are Selling Some Of Your Payments, A Portion Of Each Payment, Or Your Entire Structured Settlement — And How The Sale Will Affect Your Long-Term Financial Situation, Including The Possibility That You Will Face Financial Hardship Without Regular Payments From Your Structured Settlement.

The judge may take into account:


  • Your Living Expenses
  • Your Future Financial Obligations, Such As College Tuition
  • Your Life Expectancy

The Court-Approval Process Takes About 45 To 60 Days.

Although State And Federal Regulations Are In Place To Protect You From Entering Into A Contract That Could Cause You Undue Financial Hardship, You Must Take Responsibility For Your Financial Future. You Know Your Goals Better Than A Judge Or Buyer's Representative. Ultimately, You Have To Make A Decision That Is Right For You And Your Family.

Carefully Consider The Implications Of Selling Your Payments. The Sale Could Potentially Affect Your Eligibility For Retirement Plans, Social Security Or Other Government Assistance Programs And Your Tax Obligations.

What is a structured settlement?


sell my structured settlement payment | sell my structured settlement

Structured Settlements Are A Type Of Annuity That Allows A Lawsuit Claimant To Receive Their Settlement In Multiple Payments Over Time Rather Than A Single Payment. Structured Settlement Annuities Are Usually The Result Of A Personal Injury Or Wrongful Death. These Annual Payments Are Not Subject To Income Tax, And The Claimant Determines The Payment Schedule When Drafting The Settlement.

An Advantage Of Having A Structured Settlement Is That You Get Long-Term Financial Security In The Form Of A Reliable Stream Of Income. Even Better, As The Recipient Of A Structured Settlement, You Have The Right To Sell Part Or All Of Your Overall Payment For A Lump Sum—And This Is Where Jg Wentworth Can Help.

If You Have A Structured Settlement Annuity And Need Cash Now, Not Later, Call Us. We Can Help You Get The Money You Need At The Best Price, Guaranteed.*

Why should I choose JG Wentworth?


Jg Wentworth Is The Industry Leader In Structured Settlement Procurement, And With Good Reason! Reputation Is Everything To Us, So Our Goal Is To Give Customers The Best Possible Experience. Our Company Accounts For 80% Of All Structured Settlement Sales In The Us In Other Words, We Help A Lot Of People—And Our Customers Love Us.

Here Are Some Of The Certifications And Perks We Like To Brag About:

  • More Than 30 Years Of Experience
  • A+ Rating From The Better Business Bureau
  • Rated "Excellent" On Trustpilot With Over 2,000 5-Star Reviews
  • Long Standing Relationship With Top Insurance Companies
  • Best Price Guarantee*

When You Work With Us, We Guarantee That We Will Make Every Effort To Provide You With An Excellent Customer Experience. Also, As A Jg Wentworth Customer, You May Be Eligible For A Significant Cash Advance Prior To Court Approval—Ask Your Representative For Details When You Call.**

Understanding the Structured Settlement Selling Process


If You're Getting Paid From A Structured Settlement, You Can Consider The Benefits Of Getting A Lump Sum In Exchange For Your Future Payment Streams.

Perhaps You Have A Significant Expense To Cover, Or You Want To Make A Significant Investment In Your Future. Whatever Your Motivation, Selling Your Structured Settlement Can Be A Worthwhile Option. However, Understanding The Process And Potential Outcomes Is Essential Before Making A Decision.

Selling A Structured Settlement Isn't As Simple As Finding A Buyer And Exchanging Your Future Payments In One Fell Swoop. You Need To Consider The Legal Aspects, Assess Your Financial Situation And Strategize To Secure The Best Deal.

How Much Is My Structured Settlement Worth?


Your Structured Settlement Is Technically Equal To The Current Value Of Your Contract, But Not The Amount You Would Receive If You Sold Your Payment.

The Factoring Company Calculates The Present Value Using A Formula That Takes The Future Value Of Your Payments — Because The Company Won't Receive The Money Until Some Future Date — And Subtracts The Growth Potential The Company Will Lose By Not Having The Money On Hand. To Invest Immediately.

Using This Formula, The Company Calculates The "Discount Rate". The Discount Rate Is The Percentage Factoring Companies Charge To Account For The Inherent Risk Associated With The Money They Will Receive In The Future. The Discount Rate Usually Falls Between 9% And 18%.

In Addition To The Current Value Of Your Settlement, The Company Considers Your Number Of Payments, Your Payment Dates, Current Market Rates And Economic Conditions, And Any Service Fees Associated With The Transaction To Arrive At Your Discount. Rate

You Can Get An Estimate From A Structured Settlement Calculator, But Remember That No Calculator Can Account For The Detailed Terms Of Your Contract. Use Estimates As A Starting Point And Expect Quotes To Vary Between Purchasing Companies

What Are the Benefits of Selling My Structured Settlement?


In A Nutshell, The Benefit Of Selling Your Structured Settlement Is Liquidity.

While Structured Settlements Provide Financial Security For Many Years, Sometimes People Find Themselves In Situations That Demand Large Amounts Of Cash Immediately. When This Happens, The Ability To Sell Your Structured Settlement Payments Can Be A Life Saver – Sometimes Literally.

For Example, You May Need Immediate Treatment And Have Limited Or No Insurance. Or Perhaps The Bank Is Ready To Foreclose On Your Home. The List Of Financial Difficulties Is Long, And Sometimes People Have To Decide Between Their Future Security And Their Immediate Needs.

If You're Faced With A Need For More Money Than Your Periodic Payments Can Provide At Once, The Benefit Of Selling A Portion Of Your Settlement Is A Lump Sum Of Cash That Not Only Allows You To Address Expenses, But Also Gives You Peace Of Mind.

The Stress Of Looming Debt Can Cause Legitimate Health Concerns. According To The New York Times, Stress Can Lead To Many Serious Health Conditions, Including Heart Attacks. If Selling Your Structured Settlement Can Ease Your Anxiety, The Benefits Extend Beyond Finances And Your Health And Well-Being.

But It's Not Just Financial Hardship That Drives People To Sell Their Structured Settlements. If You Received A Structured Settlement For A Personal Injury That Resulted In Your Inability To Earn Income, You May Not Be Able To Rely On Your Payment As Someone Who Was Unable To Work. As A Competent, Gainfully Employed Adult, You Have The Right To Make Your Own Financial Decisions.

Selling a Minor’s Structured Settlement


The Most Carefully Guarded Structured Settlements Are Those That Cater To Minors. If A Child Under 18 Receives A Structured Settlement In A Personal Injury Case And His Or Her Circumstances Have Changed Profoundly Since The Settlement Was Ordered, A Parent Or Legal Guardian May Sell The Right To Future Payments, But The Burden Of Proof Is Higher.

The Parent Or Guardian Must Conclusively Demonstrate To The Court That There Is An Immediate Need For The Cash And That The Child Would Be Better Served By Selling The Settlement Rather Than Receiving Payment In The Future.

More Questions About Selling Your Structured Settlement


Now You Know The Basics Of Selling Your Structured Settlement, But You May Still Have Questions.

If You Can't Find The Answers You're Looking For From The List Of Frequently Asked Questions Below, Contact A Structured Settlement Buyer To Discuss Your Options.

Does a judge have to approve my structured settlement sale?


Yes, A Judge Must Approve Your Structured Settlement Sale. Unlike Commercially Available Annuities, Structured Settlement Annuities Are Always Subject To Court Approval. This Does Not Mean That Selling Them Is Illegal. It Is Perfectly Legal To Sell Your Structured Settlement When The Judge Approves The Sale. That Said, There Are Circumstances Under Which A Judge Will Not Approve Your Settlement Sale. This Usually Happens When The Judge Considers The Sale Against Your Best Interests Or The Best Interests Of Your Family Members And Dependents.

What are my selling options?


Your Sale Options Include Selling Your Entire Structured Settlement — Meaning You No Longer Retain The Right To Any Future Payments — Or Selling Only A Certain Number Of Payments Or A Predetermined Dollar Amount. Selling Only Part Of Your Payment Means You Will Still Receive Periodic Payments, Either Resuming After The Last Payment Date You Sold Or Continuing At A Reduced Amount Without Interruption.

Do I have to pay tax on the sale of my structured settlement?


In Most Cases, No, The Amount You Receive From The Purchasing Company Will Not Be Taxed. However, Some Exceptions Apply. According To The Irs, Compensation For Lost Wages, Emotional Distress Absent Physical Injury Or Illness, And Punitive Damages Can Be Taxed In Cases Of Discrimination. The Irs Also States That "Interest On Any Settlement Is Generally Taxable As 'interest Income' And Should Be Reported On Line 2b Of Form 1040." Taxable Structured Settlements Are Rare, But Before You Sell Your Payment, Review The Terms Of Your Contract With Your Attorney.

Will I be charged interest if I sell my payment?


Factoring Companies Charge A Discounted Rate On Structured Settlement Payments. Average Discount Rates Range From About 9% To 20% And Are Intended To Offset The Risk Assumed By The Buyer In The Transaction.

How long does it take to sell my payment?


How Long It Will Take For Your Payment To Sell Depends On A Number Of Factors. Your State's Laws And The Availability Of Courts To Review And Rule On Your Sale Are Key Determinants. Additionally, Any Errors In Your Documentation Can Delay Your Sale.

Understand the Discount Rate


When Looking At Quotes From Potential Buyers Of Your Structured Settlement, You Want To Keep An Eye Out For A Low Discount Rate!

The Discount Rate Represents The Annual Return That The Factoring Company Is Required To Pay You In Cash Up-Front. Buyers Primarily Base Their Discount Rates On Their Expectations For Future Interest Rates. The Higher The Discount Rate, The Less They Will Pay For Your Structured Settlement Payment.

Some Factoring Companies Also Charge Additional Fees, So The Discount Rate Isn't The Only Factor In How Much You'll Get. This Fixed Fee Means It Is Better To Sell Structured Settlement Payments Only Once Rather Than Making Many Smaller Partial Sales.

Discount Rates Vary Among Structured Settlement Buyers, But There Is Always A Price For Quick Cash. Most Companies Use A Discount Rate Between 9% And 18%, But Some Companies Use Higher Rates.

Qualifications of a Good Buyer


When Selecting A Buyer To Pay Your Settlement, Make Sure They Meet The Following Criteria:

  • Strong Industry Experience
  • Professional And Transparent Customer Service, Without Being Pushy
  • Some Negative Reviews On Third-Party Rating Websites
  • Free, Non-Binding Quote
  • No Hidden Fees
  • Multiple Purchase Options Available
  • Legal Process And Paperwork Assistance
  • Competitive Discount Rates And Fees

What Is a Structured Settlement?


A Structural Settlement Is Easy To Understand—It's Basically Money Being Paid To "Right A Wrong." A Structured Settlement Is A Regular Stream Of Tax-Free Payments Over A Period Of Time. These Are Quite Common Practices And Are Usually Awarded For Cases Relating To:

  • Personal Injury
  • Compensation Of Employees
  • Medical Malpractice
  • Wrongful Death

When A Lawsuit Is Filed, The Defendant (The Person Or Party Accused) May Agree To A Structured Settlement Of Their Own To Avoid A Lawsuit, Or The Case May Go To Court. If It Goes To Court And The Defendant Is Found Liable, The Judge Will Set A Dollar Amount To Compensate The Plaintiff (The Person Or Party Who Was Wronged).

If It Is Not A Huge Sum Of Money, The Plaintiff May Have The Option Of Getting A Lump Sum (All The Money At Once). It's Like If Someone Rear-Ended Your Parked Car And Dented Your Fender. If This Happens, You Will Likely Receive A Lump Sum Check From Their Insurance Company For The Cost Of Fixing Your Damaged Fender.

But It's A Whole Different Ball Game When Dealing With Settlements Of $100,000 Or More. With Large Payouts, The Court Usually Decides That The Plaintiff Will Be Paid Through A Structured Settlement.

Should I Sell My Structured Settlement?


There Are Many Benefits To Having A Structured Settlement. For One, You Get Guaranteed, Tax-Free Payouts. Plus, Spreading The Payments Over Time Instead Of Getting A Lump Sum Will Save You From Making Stupid Purchases When You Get A Lot Of Money Overnight (Can You Say Qvc Shopping?) And It's Worth Repeating - An Annual Interest! This Means That If You're Getting A Lump Sum, You'll Get More From A Structured Settlement Over Time.

While Not Everyone Has The Option Of Getting A Lump Sum, Everyone Has The Option Of Selling Their Structured Settlement. But Just Because You Can Doesn't Mean You Should. Be Aware That No Matter Who You Sell Your Settlement To, You Are Selling It At A Discount. You Have To Be Careful With How Deep The Discount Is. If You Cash Out Now, You Are Guaranteed To Get A Smaller Amount, As The Money Will Not Have Time To Earn Interest. But If You Invest Your Money Right, You Can Make Up For That Lost Cash Or Even Make It Past What It Would Have Been In An Annuity Account.

There's Nothing Wrong With Buying A Structured Settlement If The Discount Isn't Too Deep, But Make Sure You Have A Very Good Reason To Sell Your Settlement. For Example, It May Be Worth It If You Need To Pay For Urgent Medical Care, Pay Off A Mountain Of Debt, Or Buy A Home. But If You're Planning To Cash Out And Hit The Vegas Strip, We Strongly Suggest You Don't Touch That Money.

The Best Way To Decide If You Should Sell Is To Sit Down With A Financial Expert And Crunch The Numbers. Shop Around For Companies That Buy These Settlements And See What Kind Of Offers You Get. Then Talk Those Numbers Over With Your Financial Advisor And See How Much You'd Lose By Selling The Settlement.

sell my structured settlement payment {FAQ}


Experience True Financial Freedom By Selling Your Structured Settlement Payment. Our Fast And Hassle-Free Process Offers Competitive Offers And Tailored Solutions, Empowering You To Embrace New Opportunities. Take Charge Of Your Future Today!

Is selling my structured settlement payments the right decision for me?


Selling Your Structured Settlement Payments Depends On Your Specific Financial Needs And Circumstances. Consider Consulting A Financial Advisor To Make An Informed Decision.

Will I get my full settlement value when selling?


No, The Purchasing Company Will Usually Offer You A Lump Sum That Is Less Than The Total Future Value Of Your Structured Settlement Payments.

Can I sell only a portion of my structured settlement?


Yes, You Can Choose To Sell A Portion Of Your Structured Settlement, Leaving The Remaining Payments Intact

Will selling my structured settlement payments affect my credit score?


No, Selling Your Structured Settlement Payment Does Not Affect Your Credit Score Because It Is Not A Loan.

How long does the sales process usually take?


The Sale Process Can Take Anywhere From A Few Weeks To A Few Months, Depending On Your Location And The Court's Schedule.

Conclusion

Selling Your Structured Settlement Payments Can Provide The Financial Freedom You Need At A Critical Time In Life. However, It Is Essential To Carefully Assess Your Situation And Thoroughly Research Potential Buyers Before Making This Decision. Get Professional Advice, Understand The Legal Implications And Ensure The Process Is Transparent And Fair. Remember, It's About Securing Your Financial Future And Making Informed Choices.

I hope you enjoyed reading the post. And we hope you got what you wanted to read. Always visit our website to get all such information. Thanks for being on our side.

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