Sale of Structured Settlements

By David Millers
Selling structured settlement payments for a lump sum of cash sounds too good to be true, right? It's not. Many times it makes sense to forgo receiving future monthly payments in order to pay off medical or other bills or purchase a new house. But, as with any other financial decision, there is a lot to consider.

Before you get started, be aware that not everyone will be able to sell their structured settlement. The courts will decide whether or not you are eligible to sell based on the reasons you provide, the origin of the payments, etc. There are many factors involved with determining your eligibility. Economic instability may also make it a bad idea to sell, since receiving a guaranteed monthly payment might make more sense than purchasing a new car.

In order to decide if selling your structured settlement is right for you, take certain things into account such as your health. Your health and your ability to work and create an income when you have had an injury may be greatly reduced, making you dependent on the structured settlement payments to make ends meet.

Before you enter into a transaction, think of the impact of your decision for your future. For instance, you do not have to sell your entire settlement. You can choose to only sell a portion of it to take care of things that need to be addressed, while still receiving payments.

You should always have a lawyer review the offer from a settlement funding company BEFORE you sign. There are many consequences that you could face if you don't know the laws or the rules before you begin.
It is also advisable to have an attorney present when in court requesting approval for the sale of the settlement. A lawyer's role in this process is to make sure you understand everything that is occurring before it occurs so that you can make the best possible decision for your situation. Some settlement purchasers actually provide free legal counsel to work with you during this process.

As with any endeavor, shop around for the best deal. You should always make sure that you are dealing with a reputable buyer that will treat you fairly. Oftentimes, the lesser-known competitors to big names like JG Wentworth and Peachtree provide more favorable rates and terms as they don't have to spend as much on marketing.

Selling your structured settlement may be the best option you have for keeping your head above water and paying large bills that may otherwise drown you. Be sure to be diligent when looking into settlement funding companies to make sure you get a deal you will be happy with.