As a result of a personal injuries lawsuit, you may receive structured settlement payments. These periodic payments are a great source of income, but sometimes life happens and your financial needs change.
In those circumstances, you may be able to sell your structured settlement payments to get the cash you need now. Selling your structured settlement is a complicated process. It`s important that you understand your options so you can make the best decision.
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What is a Structured Settlement?
A structured settlement is a series of tax-free payments issued to a plaintiff who has won a personal injury, wrongful death or worker`s compensation case. These annuities can be used to fund medical treatment, retirement or basic living expenses, as well as family needs.
Plaintiffs can rest assured that the payments will continue to be paid no matter what. This can be important for plaintiffs who are not financially capable of taking care of themselves, but need to pay for the basics in life.
Because they offer a steady stream income, structured settlements can be a great option. Structured settlements make it much easier to manage large sums of money. For cases involving physical injury or wrongful death, the money is exempt from all taxes. However, it`s not tax-deferred for other types of injuries.
How do I sell my Structured Settlement?
Selling a structured settlement is an option for people who want to receive a lump sum of cash quickly. This can be used to cover unexpected expenses and financial needs such as paying off your credit cards or making major purchases or saving for retirement.
If you decide to sell your structured settlement, it`s important to do research. You should find a reputable company that offers different sale options and a competitive discount rate.
The company will calculate the amount of your structured settlement, and then offer you a lump-sum. This amount includes a discount rate and other fees. You`ll receive less money for your payments if the discount rate is higher.
What do I need to sell my Structured Settlement?
Structured settlements offer cash payments that last longer than a lump sum.
However, some people may find that the payments aren`t enough to cover their expenses or meet their future financial needs. In these cases, selling structured settlement payments can be a valuable option.
You should carefully consider your reasons for selling your structured settlement before you make a decision to do so. This will ensure that your structured settlement sale is in your best interests and approved by a judge.
How do I find a buyer for my Structured Settlement?
Structured settlements can be a great way for long-term financial security following personal injury lawsuits. They also provide tax-free payments on a monthly basis.
Some people might find their structured settlement doesn`t cover an immediate financial need or investment opportunity. This is where selling the future periodic payments for a lump sum may be an option.
Companies that purchase structured settlements, known as factoring companies, can provide you with the cash you need in exchange for your remaining structured settlement payments. They typically offer a price less than the total value of your payments, which is called a discount rate.
What happens after I sell my Structured Settlement?
After you sell your Structured Settlement, it can be difficult to know where to start. However, there are some basic steps you should take to make sure your transaction is legal and in your best interest.
First, find a buyer willing to purchase your structured settlement payments. Choose a company that is reliable and offers the lowest price for your payments.
Once you have a buyer, the next step is to get court approval for your sale. This is required by law, and it must be done to protect your rights.