Selling My Structured Settlement

Selling My Structured Settlement

Selling My Structured Settlement

If I were in your shoes, I would be careful before considering selling my structured settlement. Why? It is because this is a sensitive decision that comes with sacrifices and compromises. How? You will find out more as you read on. Apart from things to consider, you will also learn the market and potential buyers. We will also discuss the legalities surrounding selling structured settlements. After reading this guide, you will be able to decide if selling your payments is the right decision.


Selling My Structured Settlement: The Market

If I consider selling my structured settlement, then I need to have vital information about the market. Knowing about the market will help you to be aware of the opportunities for trading out there. The good news is that the structured settlements industry is firmly established in the US. Indeed, the industry is not competitive due to limited buyers. Nonetheless, you can be confident that you will not have issues finding structured settlement companies. So, you should concentrate your energy on other aspects rather than on the plausibility of finding buyers.

Structured settlements are here to stay. It has been over 38 years ago since Congress passed the Federal Periodic Payment Settlement Act in 1982. This Act guarantees justice for the plaintiff in a personal injury or wrongful death lawsuit. The court will order the defendant to pay a lot of money to the plaintiff and spread across a period. The payment arrangement is not always the same. In some instances, the defendant will pay some parts monthly and a lump-sum towards the end. The essence of this structure is to provide a steady stream of income for the claimant.

More so, the installment plan discourages the individual from exhausting the funds quickly. Nonetheless, there are situations when the claimant needs urgent cash. Things can become so awful that the individual even regrets agreeing to the installment arrangement. This turn of events is where the secondary annuity market comes in. Some organizations offer lump-cash for structured payments. These companies rescue structured settlement holders from the anguish of regrets during dire financial situations. So, I have reasons to be optimistic if I am selling my structured settlement.


Selling My Structured Settlement: The Legalities

It is exciting to know that there is a ready market for your “product.” However, if I am selling my structured settlement, I will want to understand my action’s legalities. Besides, you should also be aware of the regulations that guide the activities of buyers. It is legal to put your structured payments up for sale. Nevertheless, it is not a straightforward process. Selling your structured settlements can leave you stranded financially in later years.

Federal Structured Settlement Protection Act of 2002 sees to it that no buyer takes advantage of your situation. It is in your best interest to be conversant with these laws to discover unacceptable behaviors by buyers. Besides, knowing structured settlements regulations will enable you to understand the eligibility criteria for sale. If I am selling my structured settlement, I want to be sure that my situation warrants a sale legally. You will know whether you should not bother because the court will adjudge your reasons as flimsy.

Apart from federal regulations, there are also state laws that guide structured trading payments. These regulations are unique to every state. So, when selling my structured settlement, I will speak to an attorney in my state for guidelines. You cannot do without legal counsel when trading structured payments. You will only have yourself to blame if you ignore professional guidance when handling something as sensitive as structured settlements. A lazy approach will result in a waste of time and energy in the end. Hence, to avoid disappointments, speak to experts before you proceed.


Selling My Structured Settlement: Vital Considerations

Selling My Structured Settlement

You cannot just wake up one day and decide to sell your structured payments. If I am selling my structured settlement, I want to be sure that I am making the right decision. Therefore, you should consider some critical factors before concluding. Here are some of these considerations:

The Criticality of the Situation

You need to be sure that the situation is desperate enough for you to sell your payments. Consider alternative means of getting funds rather than put your payments up for sale. I will not be selling my structured settlement unless there is no other way out. Endeavor to seek financial expert’s counsel before you make the decision.

The common reasons people sell their structured settlements include paying medical bills and settling debts. Some people also trade their payments for cash when they need to start a business or afford a divorce. Ensure that the sacrifice is worth it before you go ahead. You cannot afford to decide you will wish you did not make in the future.

The Whole Payment or Portions

You do not have to sell the full payments. If the need does not require that you let go of the total amount, you should not. You can sell parts of the payment and still secure your future financially with the rest.

Buyer’s Reputation

Some buyers are aware that you are in critical need of funds and will want to pounce on the situation. Therefore, do not trust every company that trades structured settlements. When selling my structured settlement, I will contact a company that has a reputation for providing excellent customer services.


Selling My Structured Settlement: Structured Payments Buyers

Organizations that deal in structured settlements and other annuities are known as Factoring Companies. These firms buy either part or full payments from structured settlements sellers. Hence, you should contact these companies when you require a lump-cash in exchange for structured settlements. Note that these companies differ in customer service quality and speed of payment processing. Some organizations have a knack for delaying payment, which may affect your plans. So, you need to be careful before you choose a company.

Besides, some factoring companies have declarations of bankruptcy in the past. You cannot trust such a buyer. Factoring companies that have a high number of court rejections are also red flags. In most cases, experienced and reputable companies know what to expect in court. They know circumstances that the judge will most likely strike out and will not bother to follow through. For example, many buyers will not want to purchase a structured payment that belongs to a minor. A judge will only approve such deals under extreme conditions.

Therefore, a factoring company with a high number of rejects is either desperate or corrupt. You should not offer your structured settlements to such an organization. Ensure that a factoring company has excellent ratings with the Better Business Bureau (BBB) before trusting it. The BBB evaluates the credibility of factoring companies. Therefore, a low rating is a potential red flag you should not ignore. It shows that the organization does not have a reputation for offering quality services to clients. So, it is in your best interest to avoid such organizations when selling structured settlements.


Selling My Structured Settlement: Trading Modalities

When selling my structured settlement, I want to be sure that I am not oblivious to essential details. A crucial part of the trading modalities of structured payments is the discount rate. If you do not have a good grasp of how it works, you will make mistakes. Selling structured payments comes at a price. You will need to let go of parts of the total value of the payment. When you notify a factoring company about the sale of your payments, you will get a quote from the organization.

Furthermore, the buyer will calculate the remaining part of the payments and give you an offer. The offer contains the discount rate, and you should not ignore its relevance. You will be getting it wrong if you think this discount is the same as what you get when shopping. Structured settlement discount rates do not operate the same way as when purchasing an item online. The higher discount rate is the best offer in the case of shopping, but the reverse is the case here!

If I am selling my structured settlement, I will accept the lowest discount! Why? A high discount rate implies that the company will offer you less for the payments, and vice versa. There is nothing you can do about discount rates because they are indispensable. You can never get an offer with zero discounts. So, when selling my structured settlement, I should find buyers that offer the lowest discount rate.


Selling My Structured Settlement: Trading Procedure

Selling My Structured Settlement

You should not be oblivious to the process of trading structured settlements. Unquestionably, you must be abreast of the situation. You should know what to expect at each stage of the process of trading your structured settlements. A typical procedure goes thus:

Research a Buyer

Some people will skip this step, but it is as critical as the rest. You should have information about the reputation of the factoring company before contacting it. You will expose yourself to exploitation and frustration if you contact the wrong factoring company.

Contact a Representative to Get a Free Quote

A company that is not willing to offer you a free quote does not deserve your time and energy. After researching an organization, contact its agent to obtain a free quote. Endeavor to ask questions when you are not sure about any part of the deal.

Evaluate and Accept the Offer

If you are sure that the offer is worth it, you should accept it. Do not forget to choose the company that offers you the lowest discount. You can improve the quality of your choice by getting structured settlement quotes from different companies.

Complete Paperwork

Selling structured settlements involves different documentations. You will need two forms of identification, release agreement, and completed application. Besides, you need a copy of the original structured settlement contract.

Obtain Approval from the Insurer

The insurance company that issued the contract must be aware before you can sell your payments. Nonetheless, the process is seamless. The factoring company will contact the insurer to approve the deal, which will not be an issue.

Get Court Approval

The final phase before you get your money is court approval. You will appear before a judge who will evaluate the deal based on different factors.

Selling My Structured Settlement: Reputable Factoring Companies


There are many topnotch structured settlement buyers in the US. These companies are known for their customer-oriented services. To save you the stress of finding topnotch factoring companies, here are some of the best:

DRB Capital

DRB Capital has high ratings with BBB. So, you can trust the company to act in your best interest during negotiations.

Novation Settlement Solutions

You can get offers through your phone from this Florida-based factoring company. Experience top-quality customer services by contacting this organization.

Oasis Financial

Join the long list of happy customers by contacting Oasis Financial for the sale of structured settlements. Oasis Financial excels in offering professional services and customer-first quotes.

Fairfield Funding

Sellers trust this company that relies heavily on referrals. Fairfield Funding has been around long enough to guide you through the selling process seamlessly. Therefore, you can contact a representative of the organization to get new structured settlement quotes.



You do not have to wish that you can sell your structured payments because you can make it happen. Nevertheless, you should not rush to make the decision. Ensure that no one is putting pressure on you to do the deal. Do not sell your right because others are doing it. Remember that instant gratification can deny you the opportunity to secure your future. Besides, you will have to sell your payments at a discount. So, if the financial situation is not extreme, you should not even think about it. Nonetheless, if you must put up your payments for sale, ensure that you contact a reputable organization.


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