There may be times when you’re in a financial pinch and need cash now. Selling your structured settlement payment rights can help you get the money you need quickly and avoid the hassle of paying back a loan or creating new debt.

However, before making such a decision, you should consider the pros and cons of the sale. Whether you’re selling your whole annuity or a specific number of payments, it’s important to be sure that the transaction is in your best interest.

What is a structured settlement?

A structured settlement is an alternative to a lump sum payout awarded after a personal injury lawsuit. The payments are a means of providing financial security to injured plaintiffs, helping them cover medical expenses and other costs.

In most cases, the settlement payments are income-tax-free. This is because these payments are typically paid through annuities, which are considered qualified funding assets by the IRS.

There are many different types of structured settlements. Some will start with a large lump sum and then distribute smaller payments over time. Others will increase their payments over the course of the settlement.

How do I sell my structured settlement?

A structured settlement can provide you with a stream of tax-free periodic payments that can offer you financial security for years. But sometimes, you might need cash immediately for things like medical expenses, home repairs, or debt repayment.

The good news is that you can sell a portion or all of your structured settlement for cash. It’s all about making the right decision based on your needs, and working with a reputable company that will make the transaction smooth and hassle-free for you.

Before you start the process, be sure to meet with your lawyer and discuss your situation. It’s also a good idea to do some research on the market so you know how much your settlement is worth. You may be able to earn a purchase offer that’s significantly above your expectations.

Can I sell my structured settlement?

If you need a lump sum of cash, selling your structured settlement payments can be an option. Many customers use these funds to purchase their dream home, pay off debt, or invest in a business.

While the amount you can sell your structured settlement for depends on the size of your settlement, you should shop around for the best price. Buyers typically apply a discount rate and fees that lower your total value.

It’s also important to decide why you want to sell your structured settlement. A judge will evaluate and rule on every sale, so it’s critical to have a strong reason before you begin the process.

How much can I sell my structured settlement for?

Structured settlements provide a secure stream of income for recipients who have received a personal injury lawsuit payment. They are often designed to account for ongoing medical bills, upcoming educational expenses and other financial needs.

A reputable structured settlement company can discuss your options and offer a solution that is right for you. Some companies also offer a cash advance on your future guaranteed payments so you can use it for immediate needs, such as a car repair or emergency bill payment.

Unlike selling your annuity, these cash advances come at a discount. In order to get the best deal, obtain offers from multiple factoring companies. The discount rate, which varies from company to company, is based on the purchasing company's expectations for future interest rates.

Do I need a lawyer to sell my structured settlement?

Structured settlements can be a great option for those who have been awarded a large amount of money. However, they can be difficult to manage.

This is because structured settlements pay out in fixed amounts over a certain period of time. In addition, they don’t allow you to take your money out of the settlement and invest it on your own.

This can be a big disadvantage for some people, especially those who have been struggling financially. For example, if they’ve gone through a lot of debt or have been dealing with financial hardships, they may want to sell their structured settlement payments and use the cash.