How to Sell a Structured Settlement
Sometimes people who choose structured settlements over cash settlements may feel trapped by it, change their minds, or find themselves facing financial needs that the steady income cannot satisfy. There is no way to change from a structured settlement to a cash settlement once the arrangements have been made. The only way out is to sell your structured settlement.
Can You Sell a Structured Settlement?
The question of whether you can sell your structured settlement or not would depend on your location and the conditions of your settlement. For instance, some states have enacted laws that prohibit the sale of structured payments and federal laws prohibit the sale of tax-free settlements. Also, some insurance companies discourage the sale of structured settlement payments by refusing to transfer annuities to third parties.
Get Cash for Structured Settlements
If there are no restrictions that apply to you, then you are free to sell your settlement annuity. There are companies that buy settlements for investment purposes. These companies will give you cash once you sign over your annuities to them. The amount they give you will be the current cash value of your settlement less their profit. When you compare the long term value of your annuities to the cash offered by these companies, what you get may be rather small. It is always advisable to consider carefully before you make this decision.
Here are some steps to follow to sell your settlement:
Get a Quote. The companies interested in buying structured settlements want to make a profit. Regardless of who you choose, you will have to part with some of your money. To lose as little as possible, get quotes from a good number of respectable companies before you make a decision.
Choose an Established Company. Avoid companies that you know little about to avoid getting scammed. Companies like Woodbridge Investments, J.G. Wentworth, and Stonestreet are renown and well funded.
Consult a Lawyer. It is always advisable to have a lawyer review a contract before you sign it. Your lawyer can ensure that the agreement between you and the company purchasing your annuity is beneficial to you. After you sign the contract, your lawyer will file a motion on your behalf for court approval.
Get court approval. In some cases you may have to appear before a judge to obtain court approval before you can sell your structured settlement. Once you receive approval, you can complete your transaction.
Resources:
Learn more about structured settlements
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