Sell Structured Settlement Payments – 5 Practical Tips

Defendants in legal cases will often settle with plaintiffs by offering them a structured settlement. This provides the plaintiff periodic payments over time in increments agreed upon by the parties instead of a lump sum.

If you have a structured settlement, it may have seemed like a good idea at the time you agreed to it. Now, you need money. Whether you want to make a purchase, pay a debt, take advantage of an investment opportunity or just want your money, there are companies out there who can buy all or part of your settlement. Here are five tips to help you make your decision when trying to sell structured settlement payments.

1) Find a reputable buyer

A lot of companies as well as private investors will be interested in buying your structured settlement payments. Shop around and be careful about choosing a buyer.

• Be sure you get quotes from companies that belong to the Better Business Bureau (BBB).

• Find out how many years each company has been in business. Choosing a company with a good track record is important. Only work with a company that has a good reputation.

• Be sure the buyer is insured and bonded.

money exchanging hands

2) Get multiple quotes from different buyers

Buyers will need to know the amount of your payments and length of time you will be getting them in order to give you a quote on how much cash they will offer you for your payments. Your offers will likely vary in amount.

3) Get quotes for selling various amounts of your settlement

You may not need to sell your entire settlement. Buyers will purchase partial settlements. For example, you may have 20 years of payments but decide to sell only 10 years of them. You can change your mind at a later time and sell the remaining amount if you need to.

4) Be sure all quotes include the fees and percentages charged by the company

You know that you will receive less money by selling your future payments for cash. But different companies charge different fees. Do not just look at the cash you will be receiving, but consider the fees charged for the service. A company with lower fees may give you more cash for your structured settlement payment.

5) Consult legal counsel

Although selling your structured settlement payments is legal in 47 states, a court order is required to approve the sale. There is a federal law that covers buying and selling structured settlement payments for cash. Depending on the state, you may be required to consult with an attorney or sign a waiver verifying you do not want legal help.

Regardless of your reason for wanting to sell your structured settlement, it’s best to follow these tips to help you get cash.

Jillian Johnson is a professional content marketing writer and blogger with a particular interest in writing about finance. To read more writing by Jillian, follow her @MissWritey.

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