Sell My Structured SettlementSell My Structured Settlement
Structured settlements provide individuals with discipline, spendthrift protection and the ability to receive payments on a predictable schedule.
You also have the chance to seize great opportunities that may arise. That can mean getting out of debt, starting a business, going back to school or investing in your family.
How it works
When a lawsuit settles, the court will usually set up a structured settlement to provide ongoing, tax-free payments. These payments can be very large or they can be quite small.
Often, structured settlements are awarded for personal injury or work-related injuries. Regardless of your reason for receiving the settlement, it is an important financial tool that can help you manage life`s unexpected and unpredictable expenses.
You may be able sell all or part of a structured settlement if it is too large to meet your current needs. JG Wentworth can help you with this simple process.
You must select a factoring company to buy your rights to future payments. This will allow you to sell a structured settlement. Make sure you do your research to get the best price. You can do this the same way you would search for a car, or for any other purchase you want to make.
Why you should sell your structured settlement
If you`re facing financial challenges or a significant life event, selling your structured settlement payments can provide you with a lump sum that`s easy to manage. It`s also a great way to help you achieve financial goals like purchasing a home or starting a business.
But before you sell your structured settlement, make sure to establish a valid reason for doing so. This is important as judges are more attentive to these transactions.
Among the most common reasons to sell structured settlements are money shortages and debt. By cashing out your payments, you can eliminate high-interest debt and reduce stress associated with a shortage of funds.
The price you pay for a cash-out transaction is typically a discount rate that can vary between 9% and 18%. This price is mainly based on future interest rate assumptions of the buyer company.
How much money you`ll get
If you want to sell your structured settlement, the amount you get will depend on a few factors. One is the discount rate, which ranges from 9% to 18% of your settlement`s present value.
Another is the number of payments you sell. If you get $1,000 per month from your structured settlement, you can sell six months worth of that money for $6,000.
You will need to give a reason for selling a portion or all of your structured settlement. Judges will review your reasons for selling before approving the transaction.
It is possible that you need to borrow money to pay medical bills, or for repairs at home. Or maybe you`ve reached a point in your life where the payments are no longer a good investment.
The Process
Selling structured settlement payments for cash can be a great way to get the money you need. Often, people want to buy a home, pay off college loans, or start a business, but annuity payments don`t cover their expenses.
First, determine why you are looking to sell your structured settlement. Your reason must be compelling for a judge to approve the sale, as they base their decision on whether it`s in your best interest.
The whole structure settlement can be sold, or you may sell a set number of monthly payments or a dollar amount. The full sale may give you more cash upfront, but it could mean you won`t receive any future payments and won`t have as much long-term financial security.
Although selling your structured settlement to factoring companies can be a great option, it comes with risks. Factoring companies charge a discount rate on the sale of structured settlements, average discount rates range from 9 to 20 percent and are intended to offset the risk assumed in the transaction.