Selling A Structured Settlement

Selling a Structured Settlement Payment: Beware of Hidden Costs

 

 

 

 

“Selling A Structured Settlement”

Many years ago, victims of injury who won settlements would get a single lump sum payment.

Sometimes, funds would be used up and unavailable for future requirements.

Another settlement arrangement that allowed injured parties to receive recurrent payments over a predetermined time period

or lifetime was developed in the 1980s. Structured settlement refers to the ongoing future payment.

Despite the fact that both lump-sum payments and structured settlement payments are tax-free, structured settlements gained popularity for a number of reasons,

including the fact that the payments were “guaranteed,” the recipient of the future payments was not permitted to spend the entire settlement proceeds,

they did not need to worry about managing, investing, or overseeing sizable sums of money, and they did not have to pay taxes on the proceeds.

 

 

RELATED: SELL YOUR STRUCTURED SETTLEMENT PAYMENTS

 

 

 

There are negative aspects, though.

The guarantee is only as strong as the financial supporters, despite the fact that the funds appear to be safe (for instance, First Executive Life, which provided annuities for structured settlements, went bankrupt).

The terms of a structured settlement are rigid.

The structured settlement beneficiary is prohibited from owning the annuity policy that generates the recurring payments,

as well as from transferring funds to another party, altering the payment schedule, or requesting an early cash out.

A person who gets a structured settlement cannot request that the payments be increased or that the annuity insurance be cashed in if they need money right away.

Companies advertised they would buy structured settlements for cash now because they understood that some damaged people needed money now.

The businesses don’t explain why the money.

 

 

 

 

 

How does selling structured settlement work?

You effectively transfer your payment rights to the purchaser business in exchange for a lump sum payment when you sell all or a portion of your structured settlement payment stream.

Customers of JG Wentworth who receive guidance from our devoted staff of representatives find the procedure to be simple.

 

The steps you’ll take are as follows:

 

 

1.Get your lump sum now!

Depending on your preference, we can pay you via wire transfer, direct deposit, or cheque.

Yes, it is that simple.

 

 

RELATED: SELL YOUR STRUCTURED SETTLEMENT PAYMENTS

 

 

 

2.Attend the hearing.

Your payment rights cannot be transferred without the court’s approval.

Depending on the process, it may take six to 10 weeks.

The judge will ensure that the transaction is in your best interest and that you understand the terms, even if appearing in front of a judge may feel scary.

And don’t worry, we’ll explain everything to you before your court date so you’ll know what to anticipate.

 

 

 

3.Accept your offer, then send the contract back.

You will be required to sign and return a contract to us after you accept a quote that details the details of your agreement.

Your JG Wentworth team will then take care of any paperwork required to finish the transaction, including setting up a court date for you to get a judge’s approval.

 

 

Following the purchase of the building, the injured party notifies the company making the regular payments of a change of address and grants the factoring company power of attorney to accept payments.

 

 

 

Selling a structured settlement might come with significant risk:

 

1. Is the one-time cash payment to the victim tax deductible? If the money made by the factoring firm to the injured party is considered taxable income, the transaction becomes highly expensive.

2. What happens if the insurance company stops making future payments to the factoring company? Who is accountable?

3. Did the victim obtain a fair and sufficient cash value in exchange for forfeiting their future benefits?

4. Was the individual who purchased their structured payment fully informed of the conditions of the contract?

 

 

 

RELATED: SELL YOUR STRUCTURED SETTLEMENT PAYMENTS

 

 

 

Must I restructure my settlement?

Life always manages to surprise us, and occasionally such circumstances cause our finances to be unexpectedly strained.

You’re not the only one who is having trouble with an unexpected bill. Only 44% of Americans can afford to cover a $1,000 emergency with just their savings, according to a 2022 Bankrate survey.

In an emergency, for the majority of Americans, taking on debt to cover the cost is the wisest course of action.

It can be challenging to come up with the money for an urgent need without going into debt,

even if you don’t have an emergency—perhaps you want to return to school or make a down payment on a property.

 

 

 

How can I sell my structured settlement payments without getting deceived or taken advantage of?

It’s crucial for sellers to conduct due diligence on any organization they’re thinking of selling their structured settlement payments to, which should include looking into their qualifications and reading client testimonials.

 

 

 

RELATED: SELL YOUR STRUCTURED SETTLEMENT PAYMENTS

 

 

Ask their salesperson the following questions if you’re thinking about selling your settlement funds to a company:

 

.How many transfers have you completed in the past?

.How many transfers in my state and county have your company funded?

. How soon after the court’s permission can I anticipate receiving my money?

 

 

 

In general, you should look for a company with a lot of expertise because they have dealt with every problem imaginable.

Look for a corporation in charge of hundreds of transactions across numerous states and counties rather than selling to someone with ten transactions per month in a select few locations.

 

 

These factoring companies might find it simple to prey on those with traumatic brain injury who are receiving structured settlement payments.

It is legal for someone who has suffered a brain injury to settle their claim and take a lump sum or a structured settlement amount.

A person with a brain damage has the right to accept a structure and then sell it for quick cash.

However, a person with a brain injury should be completely aware of the implications of the decision BEFORE agreeing to sell a structured settlement.

The buyer should be aware of the contract’s provisions as well as its legal and financial ramifications.

It is strongly advised that you seek legal and financial advice BEFORE selling a structured settlement.

If not, it might cost you more than