Tips on Selling a Structured Settlement Payment

2007-03-08 10:33:40

( Financial )



Structured settlement is a financial accord whereby an injured party agrees to receive a portion of the money owed in periodic installments. Beneficiaries or claimants of structured settlements sometimes need a huge sum of money for their immediate financial needs. The agreed monthly payment is sometimes not enough to cover their daily expenses or medical bills. Thus, some people decide to sell their structured settlement payment. Before selling your structured settlement, however, there are things you need to know.

Determine the amount you need

First, you need to decide the amount of structured settlement payment you want to sell. If you need a big amount of money, you can opt to sell your settlement as a whole. If you just need cash to pay for certain bills, you can decide to sell just a part of your settlement.

Find a buyer

The web is an ideal place to start hunting for prospective structured settlement payment buyers. There are also websites that could help answer some of your questions on getting cash for structured settlements.

Aside from the Internet, you could also look for settlement brokers to help you find possible structured settlement payment buyers. Ask help from your family and friends. However, you must ensure that the broker you hire does not have an exclusive agreement with an underwriter.

You can also decide to sell your structured settlement payment to settlement companies. It is advisable to transact with such groups only when you have no other alternative buyers. Settlement companies usually deduct their profit and some fees from the structured settlement's sale price. Thus, you end up receiving an amount that is substantially smaller compared to your structured settlement.

You need court approval

The sale of structured settlement is subject to the approval of the court. The court needs to review the terms of the sale to ensure that the seller will benefit from the transaction. You will need to hire either a tax adviser who is familiar with structured settlement sales or a legal professional to ensure a smooth sale of your structured settlement.


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