Can I Sell My Structured Settlement?

Sell My Structured Settlement

Unexpected events and circumstances, more often household financial burdens, sometimes require a large sum of money.
Before you dive in risky loan-shark waters, check if you have a better option.
Your structured settlement, which provides steady income over time, is a great resource to

Question : Can I sell my structured settlement?
Answer    : You betcha.


A lot of people sell their structured settlement payments for a lump sum of cash, and there are several consultancy firms that provide quotes and bids for future payments to individuals who would like to sell their structured settlements.
Structured settlement recipients can choose to receive lump-sum cash for structured settlement payments to pay off debts, nagging credit card bills, medical bills and other payment obligations.
Some firms provide customized payment plans for individuals who wish to keep part of their fixed income, which do provide financial security.
The payment plans could be full payment, partial payment, shared, and deferred payments to individuals who seek to receive cash for structured settlement payments.
You’ll need a financial expert or a qualified broker to review your settlement and release documents, as well as your annuity policy documents, to see if it’s viable to sell the future payments from your structured settlement.
Don’t worry if your settlement documents indicate that your settlement payments are ‘non-assignable.’ This will not be a problem in your efforts to sell all or a portion of your structured settlement payments.
The 2002 federal law that originally created the framework for selling structured settlement payments will now tell you that the ‘non-assignable’ language should be ignored as it is no longer valid.

Question:  How will I know if the firm is offering the best structured settlement purchase?
Answer:  Here’s an early sign: A good buyer will not charge you for a quote.

It’s a good idea to have an attorney during the process of selling your structured settlement payments. An experienced legal professional will be able to answer your questions and safeguard your interests. Some states in the U.S. will even require you to consult an attorney.
Any court costs, as well as the fees for your attorney, can be paid by you or the structured settlement buyer. Some buyers will not pay for your attorney and will expect you to pay these costs, but others will.
So don’t be tricked. When you compare the quotes you have received from interested buyers, find out if you or they will pay the court costs and the fees for the attorney.

Sell my structured settlement?

You badly need a large sum of money and you ask, ‘Can I sell my structured settlement?’ Well, it depends on where you live.
About two-thirds of states in the United States have enacted laws that restrict the sale of structured settlements, and tax-free structured settlements are also subject to federal restrictions on their sale to a third party. Moreover, some insurance firms will not assign or transfer annuities to third parties, discouraging the sale of structured settlements.
But these don’t stop thousands of Americans in the rest of the states from selling their structured settlements. Unexpected expenses, often household-related, require big cash, and selling one’s structured settlement is better than getting tied to usury.
Bear in mind, however, that structured settlement companies are not godsends.
They intend to profit from any structured settlement purchase, and sometimes their offers are quite low. So be smart enough to approach more than one company to make sure you get the highest payoff.
Also, trust only the company that is well-funded and reputable. Beware of frauds.
You don’t want to let any company obtain the rights to your annuities only to disappear or go bankrupt before paying you the buyout money.
Excessive commission is just one of dirty tricks to watch out for. Check if the commissions charged in setting up a structured settlement don’t consume an inappropriate percentage of its principal.
Another is self-dealing. This happens when the plaintiff’s lawyer is also in the insurance business, and sets up a structured settlement on behalf of a client without disclosing that the attorney is purchasing the annuities from his own business, or is pocketing a large commission on the annuities.
If you have to go to court to get a judge to approve the buyout, you have to consult a reliable lawyer. You need him beside you before entering into an agreement to sell your settlement.
Here’s a helpful tip: It makes sense to purchase annuities for a large structured settlement from several different companies, dividing the settlement between those companies.
If one company goes into bankruptcy, you will still get something from the others.