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How to Sell Structured Settlement Payments for Cash

A structured settlement is a powerful financial tool made exclusively for injured people in a personal injury case. After winning a personal injury lawsuit, you can either receive a lump sum payment or a structured settlement, where you’re provided with regular, tax-free payments over an extended period. Instead of having to deal with the unexpected stress and difficult decisions you have to face when handling a large lump sum of money. Structured settlements are the safest and the most logical (economically speaking) way to go.

What about the need of selling? Can I sell my structured settlement? Is that possible? It is. From buying a house to putting together funds for that vacation you always wanted, selling your structured settlement will give you the financial leeway to do it. But it is advised that you carefully consider your situation before proceeding with the sale. Most financial advisers would recommend you to avoid selling your settlement, if possible. This is because, in the long run, you receive a lot more money from the periodic payments of your settlement plan. With most plans, the money is tax free. So it is always best to collect all the pertinent information and consider all options and routes before deciding which path you will take.

On average, it takes about 45 days for you to receive your money after you sign the contract. The structured settlement companies that we recommend more often than not can get the money in your hand faster than “the average.” Please do note that payment purchase transactions are separate from different states as each state has different laws and regulations regarding such transactions.

Selling a structured settlement can be tricky, not the actual selling part, but the aftermath. What most people don’t realize is the payments are usually tax-free income for many years. When you cash in the structured settlement, there could be a tax bill, and most people don’t understand that when they go to sell it.

It can be brutal, but you may be able to avoid if you have the right information. But often, circumstances present themselves which are far worse than the hit of cashing in. For example, the $500 a month payment from a car accident from years earlier may have helped with the medical bills back then, but if job loss, home repair, or other unexpected bills occur, a lump sum payout for $65,000 looks better every day.

But what if you are just starting out in the process with your accident claim, and you have bills piling up, and the settlement isn’t close to being reached. Do you have options? Can you get help? The answer is an absolute yes. There is a process called pre-settlement funding, and you can get an advance on your future settlement so you can take care of your bills now.

What are the negatives of selling structured settlements?

Selling your settlement can carry charges of up to 10% of the remaining balance.
Selling before the age of 59 ½ can create federal taxes and/or penalties.

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