The Buyer’s Obligations
Most structured settlements are the result of personal injury. As such, the courts want to ensure the aggrieved party receives what they are rightfully entitled to. They also want to ensure that the party is not taken advantage of should they decided to someday sell their structured settlement. That’s why there are laws in place that clearly spell out the buyers obligations.
These obligations vary from state to state so check to find out what they are where you live through one of your state agencies, or with a reputable structured settlement buyer. Many have specific deadlines that must be met as well as required language that must be written into the contract that holds you harmless should the seller not follow through on their end of the deal.
But It Says I Can’t Sell My Structured Settlement
If you have a structured settlement as a result of a personal injury, there will be a part of your settlement agreement that states you can’t resell it. This statement is there as a result of federal settlement laws and a required part of the language of your settlement agreement. But, you can still sell your structured settlement.
If you read further along in your agreement it won’t be long before you’ll come across additional language that states you have a right to sell your structured settlement. The process involves seeking court approval before the sale can be finalized, but you do indeed have the right to sell your settlement, and the courts will uphold that right.
When To Sell A Structured Settlement
There are times when people find themselves in situations in which their current level of income doesn’t meet all their financial obligations. The mortgage is over due, the bills are mounting, and medical needs are on the rise. Often times, they decide to sell a portion or the entirety of their structured settlement in order to meet these immediate debts.
If you are considering selling your structured settlement, be sure to shop around and find a company that has a lot of experience in these types of sales. There are state and federal laws that must be adhered to in order to successfully sell a structured settlement. A company with a lot of background knowledge can help you get your money in a timely manner so you can begin paying off your debt.
Sticking To The Plan After The Sale Is Final
Selling a structured settlement means you get your cash quick, and having a large amount of cash fall in your lap may seem like a windfall. It’s important, however, to not be distracted by such a large lump sum of cash.
It’s easy to start thinking that maybe you could do this with your money rather than that. Or that maybe you could spend a little bit of it, and replace it at a later date. But, any financial advisor will tell you that line of reasoning is a good way to wind up in debt.
If you’re selling your structured settlement, and you have a goal in mind for the cash you’ll receive, do yourself a favor and stick to the plan after the sale is final.
When You Have Questions…
There’s only one way to determine if you can sell your structured settlement and get the cash you need. First, determine the amount of money you feel you’ll need to get if you sell your settlement. Then, do a little figuring.
Calculate the number of remaining payments and the amount of each one. Add the total value of these payments together, and you’ll come up with what your total settlement is worth. With that information in hand, contact some professional companies that specialize in buying structured settlements and get a few quotes.
After doing all this, if you feel that a structured settlement sale is in your best interest, do a background check with the partner you’ve chosen to be sure they can back up their end of the deal.