- Getting Cash for Structured Settlement Payments
- Selling Personal Injury Payments
- What Caused the Rise of Structured Settlement Buyouts?
Getting Cash for Structured Settlement Payments
How Do I Cash in my Future Structured Settlement Payments?
The general answer is you contact a factoring company, agree on a dollar figure, sign some paperwork, wait for a court decision, and receive your monies. Sounds simple enough, and it can be for you; although there is plenty of paperwork to be signed and notarized, as well as documents that need to be gathered.
For a legal answer, we'll start with legislation signed in July 2002 that essentially created the model for handling these transactions. The legislation imposed tax penalties on transactions which bypass the court-ordered process. Every transaction is governed by the best interest of the structured settlement recipient in the opinion of the court, taking into account state statutes regarding factoring transactions.
The average sale of structured settlement payments begins with a disclosure statement presented to the seller, notice to interested parties, and acknowledgement of the particular state requirements regarding legal or financial advice. It ends with court approval.
Steps in the Process
- Contact factoring company
- Provide details of your future payments
- Agree about the amount of money you need (Selling some may be better than selling all)
- Receive a disclosure in the mail (per your state's statutes)
- Receive a contract in the mail (Factors need all your settlement and annuity info to create it)
- Legal work begins between the insurance company and various attorneys
- The transfer receives a court date and goes before a judge
- Acknowledgment is received from insurance company
- Payment is made to seller
Payments are usually received within six to eight weeks from the time the contract is signed.
That is the long answer as to how future payments from structured settlements become cash now. The short answer is… Contact the experts!
Contact Structured Settlement Investments
If you would like to learn more about selling future structured settlement payments, contact Structured Settlement Investments today to speak to an expert.
