4 Tips for Selling Structured Settlement Payments

Structured settlements are usually the perfect way to settle a legal dispute. In general, they provide you with more money over a longer period than you would get if you accepted a lump-sum settlement.

But, what will happen if your income requires a change?

You might need cash for education, to buy a house, or even to cover unforeseen life expenses. The main problem with a structured settlement is that you can’t change the payment frequencies once it’s been set up.

This is why it’s important to consider the following tips for learning how to sell your structured settlement payments.

  1. Look for a Buyer

If you have ever considered selling structured settlements before, you know the first step is finding a potential buyer. However, this can be difficult for many people. 

This has been a serious issue in the past and still is, causing many individuals to shy away from selling structured settlements for cash.

If you believe it is in your best interest to get cash for structured settlements, consider getting quotes from several potential buyers to determine how much cash will be available.

  1. Determine Your Financial Status

Know that the factoring companies that buy structured settlement payments may have administrative and legal costs. 

They are still a business, meaning they need to make some kind of profit. For that reason, the amount of payment you will get over time can be more than the amount you may receive from the company.

The buyer or company can offer you a lump sum, which might be as low as 45% of your future payments. For instance, if you receive a total of $2000 every month through your structured settlements, the payment might be lower than $1000.

This makes it necessary to look at your financial status carefully to evaluate the amount of cash you want and how much you need before you sell your structured settlements.

  1. Assess All Your Options

Don’t just read the fine print and become familiar with the terms and conditions of the deal before you agree to it. Ensure you also get answers to any questions you have and are comfortable with the company you’re working with.

If you are not sure about any aspect, ask the people you trust to help you weigh all your options. 

Review the company’s site, speak to one of their representatives, and look at all the organizations they belong to.

  1. Get Court Approval

After choosing the best company to purchase your structured settlements, a court hearing can be scheduled. During this hearing, a  judge will approve the transaction and ensure that the decision is in your best interest.

The judge might require you to attend the court hearing or have your preferred buyer represent you there. But, this may depend on what your state allows and what the company offers.

The Bottom Line

Although structured settlements provide financial securities for many years, people sometimes run into situations that demand a lot of cash right away. 

When this happens, the possibility of selling your settlement payments might be a lifesaver.


Sudarsan Chakraborty is a professional writer. He contributes to many high-quality blogs. He loves to write on various topics.