When one wins a sum of money in a lawsuit or in the lottery, one can decide to be paid the money in batches by an insurance company (or, in the case of a lawsuit, the insurance company of the payer/defendant). These batches can be paid in anyway, at anytime: once on the 21st of every month; once every leap year; or even once on Christmas every year. These are what are called structured settlement payments, or structured settlements for short. Now, one can sell their structured settlement if they feel the need to, however, there is a process they have to go through first. To begin, they have to decide: why should you sell your structured settlement?
Sell Your Structured Settlement: Assess The Situation
Before one can just up and sell their settlement, they have to assess the situation necessitating the sale. These reasons must be those that absolutely must be addressed with cash immediately: if they are not, then one should explore the option of awaiting the next structured settlement payment. However, if it is any of these reasons, you are free to proceed with the plan to sell your structured settlement:
- The roof caved in while the family slept
- The children (all 5 of them) are starting college next month (and your settlement payment plan is the once a year at Christmas one. That is 5 months away)
- Medical bills
- House and car mortgage (and the bank is hot on your heels)
- Any life threatening situation that can only be resolved immediately with cash.
Sell Your Structured Settlement: Do Your Research
Once one has decided that the need to sell their structural settlement is greater than the need not to, they should immediately start their research.
They should meet up with people have (successfully or not) sold their structured settlements. They should ask them deep and searching questions, making sure they cover all the basics.
Then, they should hook up with a lawyer with knowledge on how to sell structured settlements. After talking and you have decided he/she knows their stuff, hire them.
That done, look for a financial company that dabbles (legally) in buying and selling structured settlements. Even if they are certified, legal financial companies, make sure they won’t attempt to swindle you out of your money.
After all this has been done and confirmed, proceed to sell your structured settlement.
Sell Your Structured Settlement: Proceed With Sale
Due to financial companies and other fraudsters cheating honest folks out of their much deserved cash payouts, the whole buying and selling structured settlement gig is a court-regulated process. As such, the complete sale and receipt of cash may take anytime form a month to three months. So, to sell your structured settlement…
The seller, after approaching the chosen financial company, will fill out some paperwork and bring forth some paperwork related to the structured settlement. The company buying the structured settlement will look everything through, fill out some of their own paperwork, and submit to a judge. The judge will go through everything (or, at least, is supposed to go through everything) with a fine tooth comb. The judge ensures that the company is playing fair; the seller’s reasons for selling their structured settlement is worth it; and the sale of the structured settlement is in the seller’s best interests. After the judge’s approval has been given, the seller will get their money.
Sell Your Structured Settlement: The Pros
The advantages you get when you sell your structured settlement are:
- No more waiting for the next leap year to receive your payment: you get it NOW
- You can invest and gain even more money
- Just in case one owes gajillions of money in rents or mortgage, the payout will settle all of that
Sell Your Structured Settlement: The Cons
The disadvantages that come when you sell your structured settlement are:
- Now, you pay tax. Structured settlements are tax-free, but once you sell them you are eligible for tax-payment
- You are a terrible spender. The load of money you get will instantly be spent if you don’t know how to curb your enthusiasm.