In 2002, Congress passed the Structured Settlement Protection Act (SSPA) to protect recipients when they opt to sell out their settlement.
If you choose to settle your injury case outside court, you’ve a few payment options! The first option is to get paid at once in a lump sum, while the other involves periodic payments. In a structured settlement contract, you’ll state how often they’ll pay you, and how much they’ll pay.
You can also decide to start receiving payment immediately, or at a later date. Unfortunately, life doesn’t come with a cheat sheet. This means that anything can happen that’d need a lot of money to sort out.
Can I sell my structured settlements? Yes, you can, and we are here to show you how. Read on to discover where and how to sell your structured settlements.
Reasons to Sell My Structured Settlements
Please note that not all shortcomings should make you sell structured settlement. A structured settlement offers you and your next of kin financial security. You should only sell out if the situation is an emergency and you don’t have other sources of funding. You can also sell out if there’s a good business investment to take up.
But, consider talking to an accountant about the investment opportunity before selling. You should also speak to your lawyer for more advice on how to sort your situation.
Some of the unavoidable shortcomings might include:
- A relative in need of an expensive surgery
- If faced with a natural calamity, and lose things that weren’t insured
- Investing in education
- Paying off debt
As the above list isn’t exhaustive, when your situation happens, ask yourself this:
- I’m I able to raise funds from friends, family, and well-wishers?
- I’m I able to pause the project until I save enough to invest?
- I’m I able to get a salary advance at work, and sort the situation?
- Do I have any unnecessary assets that I can sell instead?
- Are there other ways to make extra money for my needs?
In case all the above check in as NO, then you can go ahead and consult a professional for other possible options.
What is the Selling Process?
First, you should know that you’ve the option to sell your full payment or a portion. Therefore, you can only sell for the amount you need and leave the rest for the future. Once you’ve consulted your accountant and lawyer, you can go ahead and find buyers.
Some companies specialize in the buying of structured settlements. Gather a couple of them and compare their pricing deals. Pick the one that appears favorable.
Ensure that the company has an excellent track record of such services before contacting them.
If all’s well, contact them for further discussions. After that, you’ll need to present your request to a judge for approval.
Once approved, you can get your money. Certain state laws prevent specific settlements from being sold out. This is where your lawyer will advise you.
Selling my Child’s Structured Payment
You might be wondering, “Is it possible to sell my structured settlements, including my child’s?” If your son or daughter is a minor and was receiving structured settlements from their case, you can sell too.
However, the court process will be quite challenging. You’ll have to prove that selling out the settlements is more beneficial to your child than saving for the future.
Before making a decision, carefully analyze the situation to avoid jeopardizing your child’s future benefits.
Talk to a professional to ensure that you make the best decision.
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