Sell My Settlement Payments, Is it possible?

Sell My Settlement Payments

Sell My Settlement Payments

“I need urgent cash for something critical and will like to sell my settlement payments.” Does this statement resonate with your situation? If yes, then you are reading the right article. Most people will prefer to avoid being in this situation. I would not like to have to sell my settlement payments too. Nonetheless, there are crucial instances like settling a divorce or starting a business where you need instant cash. In such dire times, I will also not hesitate to sell my settlement payments. You will find useful information on how to go about the process in this guide.


Sell My Settlement Payments: Legalities

The last thing you want to do is to involve yourself in illegal activity. Therefore, if I want to sell my settlement payments, I need to be familiar with the legalities of this action. Running afoul of the law can cost you money and your freedom. Hence, you need to be sure that you are not doing something that will cause you trouble. The good news is that selling structured settlements is legal. So, you will not be doing something wrong by choosing to sell them. The government is aware that there are situations that may warrant exchanging structured settlement for lump-cash.

In 1982, Congress passed the Federal Periodic Payment Settlement Act to decide personal injury cases. Since then, the practice of selling structured settlement payments has been rampant in the US. Many see structured payment as the most equitable way to resolve cases of personal injury. It compensates for the pain and suffering of the plaintiff. The Federal Periodic Payment Settlement Act exempts structured settlement revenue from all income taxes. Besides, you will not have to pay taxes even when your settlement payments annuity earns interest.

More so, you should seek legal counsel before you go ahead with your decision. This decision will enable you to act within the confines of the law throughout the process. Besides, I will prefer to seek professional advice from financial experts before I sell my settlement payments. You may realize that there are other alternatives you can explore instead of letting go of your right.


Sell My Settlement Payments: Key Considerations

Choosing to sell your settlement payment or not is a sensitive decision you need to make with caution. Therefore, you need to put some things into consideration before making this choice. Here are some of the critical factors you will consider if you want to sell my settlement payments:


Future Implications

You cannot afford to be shortsighted when choosing to sell your settlement payments. You will regret it later if you sell your structured settlements because of instant gratification. Ensure that you do not put the finance of your family at risk. Think about how this decision can affect your eligibility for government medical assistance and social security.



I need to be sure that I can sell my settlement payments before proceeding with the process. The federal Structured Settlement Protection Act of 2002 has strict rules to protect claimants’ rights. So, you need to find out if you meet the conditions for a transfer of ownership. Besides, you should also ensure that structured payment regulations in your state allow you to sell based on your reason.


All or Parts

I have to decide if I want to sell part or all when I need to sell my settlement payments. This is the reason it is good to seek professional counsel before making up your mind. If you do not need to sell all of your payments to meet the need, you should avoid it.


The Company’s Reputation

Ensure that you contact a company that has a reputation for protecting clients’ interests. The court will reject your request to sell your settlement payments if it doubts the company’s credibility. Therefore, save yourself the stress of going through the process only for the judge to disapprove of the sale.


Sell My Settlement Payments: Buyers

Sell My Settlement Payments

It is not possible to sell any commodity when no one is willing to buy it. So, if I want to sell my settlement payments, I need to be confident that I can find buyers. You do not need to stress yourself because there is a market for your structured settlement payments. Structured settlement payments companies are also called “factoring companies.” There are many of them across different states in the US. These companies have different modes of operations. Some of them also buy lottery contracts alongside structured settlement payments.

A secondary annuity market became necessary after the approval of settlement payments. Factory companies offer lump-cash in exchange for structured settlement payments. Hence, if I need to sell my settlement payments, I need to contact these companies to get quotes from them. You need to be careful before trusting any organization. Consider factors such as the number of rejection and history of bankruptcy before selecting a buyer. A company with a high number of rejections and history of declaring bankruptcy is not a safe option.

Furthermore, there are laws in each state that protects sellers of structured payments. So, if I want to sell my settlement payments, I will speak to an attorney in my state. These regulations ensure that factoring companies do not take undue advantage of you. Due to these protection laws, structured payments companies are more careful with their dealings. Nonetheless, you need to be conversant with the regulations and be careful when choosing a buyer.



Sell My Settlement Payments: Discount Rate

Factoring companies will not pay you the full amount of the worth of your settlement payments. So, I need to understand the discount rate before I sell my settlement payments. The quality of services differs, but the step for selling structured settlements is the same. When obtaining quotes from potential buyers, you need to look out for the discount rate. When shopping, you go for high discount rates, but the reverse is when selling your payment settlements. The company that offers you the lowest discount rate is the best!

More so, it may sound weird initially, but that is how it is in this industry. The discount rate is the amount the buyer will deduct from your payment. Therefore, a high discount rate implies that the factoring company will earn more. Meanwhile, a low discount rate means that you will have more value from the sale of your settlement payment. Factoring companies calculate a suitable discount rate by considering several factors. They consider factors such as the total payments, current interest rates, timeline of payment, and additional fees.

I will prefer that the discount rate is zero if I want to sell my settlement payments. However, this wish can never come to pass! You can never find a buyer that will pay the full value of your settlement payments. Your best bet is to find the company with the lowest discount rate. The discount rate is the price you have to pay for getting instant cash.


Sell My Settlement Payments: Best Factoring Companies

Sell My Settlement Payments

Do your research before trusting a factory company. However, you do not need to worry because the hard work has been done for you. If I want to sell my settlement payments, I will consider the following reputable companies:


DRB Capital

DRB Capital has the respect of all and sundry because of its outstanding customer service. The company offers one of the best quotes and is reputable for putting clients first. DRB Capital provides individualized services by assigning a representative to work with you. So, you will not have to deal with the confusion that comes with working with multiple agents.

More so, you will be able to speak with the same representative anytime you contact the company. Besides, no one will rush you or put pressure on you during the process. The company has an excellent rating from the Better Business Bureau (BBB). Therefore, you can be confident that you were in good hands when you chose this organization.


Fairfield Funding

Fairfield Funding offers one of the best customer services in the industry. The company gets most of its clients through referrals from previous happy customers. So, you can count on this company to handle your payment professionally.


Novation Settlement Solutions

This factoring company is based in West Palm Beach, Florida. The company has a reputation for making quick decisions that makes them appealing to clients. Novation Settlement Solutions allows you to submit your questions by email and get quick responses. Also, you can receive offers via phone with this company.


Oasis Financial

The company has offices all over the United States but based in Rosemont, Illinois. Oasis Financial has been providing clients with pre-settlement funding and structured payments since 2002. It is a reputable factoring company with incredible services and fantastic quotes.



Sell My Settlement Payments: Selling on Behalf of Minors

Structured settlements involving minors are the most sensitive. It is usually trickier to get the approval of judges for people in this category. The parents or legal guardians may have permission to sell the settlement payments. Nonetheless, it requires a high burden of proof. Parents or guardians must be able to demonstrate to the court that the child’s immediate need warrants the sale. The judge will not approve the deal if the child will benefit more by waiting on future payments.

More so, some factoring companies avoid buying payments involving minors. They are aware of the complications surrounding such cases and will prefer to stay clear of them. The process can be frustrating and can drag out for years in some cases. Nevertheless, things will be more accessible when minors turn 18. They will have the same treatment as adults at this stage. Hence, they can decide to sell part or all of their payments by then.


Sell My Settlement Payments: Procedure

You need to be conversant with the process of selling your payment settlement. Understanding the procedure will help you to know what to expect. It will also help you to decide whether the stress is worth it. Here are the steps involving the sale of settlement payments:


Choose a Factoring Company

You need to find a factoring company so that you can get cash out quotes. It is better to speak to multiple buyers before sticking to one. Ensure that you are clear about every detail of the deal before you proceed. If I want to sell my settlement payments, I must be sure about how much I will be earning. It is safe to put the promises of the company into writing for future references.


Obtain Court Approval

You cannot sell your structured settlements without the approval of a court. There is no point in being jittery because it is a straightforward process. The judge needs to be sure that you will not hurt yourself by making this decision. Besides, the court does not want you to fall into the hands of corrupt factoring companies. The judge will consider factors such as the company’s reputation, the offer, and age before the final decision.


Receive Payment

Once the court approves the deal, you are ready to receive the cash. Nonetheless, you will not get funds immediately. The buyer will first contact your insurance company to let them know about the deal. Then, the company will process the payment. The length of time this process will take depend on the factoring company. If I want to sell my settlement payments, I will choose a history of quick payment processing.



Your future depends on your structured settlement payments. Therefore, you should be careful when making any decision regarding it. Besides, you will be selling it at a discount rate. Hence, do all you can to hold on to it rather than put it up for sale. Nonetheless, if you need to sell it because of a critical situation, ensure you find an excellent buyer. The company you choose will affect the discount rate, quality of services, and speed of payment process. So, think twice before you trust a factoring company.



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