How long does it take to sell a structured settlement?
On average, it takes 30 – 45 days to sell structured settlement payments. Selling your structured settlement payments requires court approval which is usually the main cause for any unexpected delays in the transfer. Each state has an individual statue that may determine some of the waiting periods required throughout the process and can be a factor in the amount of time it takes to sell structured settlement payments.
How does one sell a structured settlement?
You get your money. The first step in the process of selling your structured settlement payments is to contact DRB Capital.
How to go about selling a structured settlement?
How to Sell a Structured Settlement
- Evaluate Your Needs. Step 1: Decide how much money you need and how much of your structured settlement you want to sell. ...
- Get Quotes. Step 2: Contact the company that will make the purchase — known as a factoring company — for a quote.
- Assess Your Options. ...
- Select the Company. ...
- Request an Advance. ...
- Appear Before a Judge. ...
- Get Your Money. ...
How much does selling a structured settlement cost?
The bulk of the cost of selling your settlement will be the discount rate, which will vary greatly by company. Quotes can range from 7% to as high as 29%. Expect many companies to offer a high discount rate in their initial quotes. Do not accept the initial quote from any company. It is standard practice to negotiate with the company’s representative to get a lower rate.
Does a judge have to approve the sale of my structured settlement?
Yes, a judge must approve the sale of your structured settlement. Unlike commercially available annuities, structured settlement annuities are alwa...
What are my selling options?
Your selling options include the sale of your entire structured settlement — meaning you will no longer retain the rights to any future payments —...
Will I be taxed on the sale of my structured settlement?
In most cases, no, the amount you receive from the purchasing company will not be taxed. However, some exceptions apply. According to the IRS, comp...
Will I be charged an interest rate if I sell my payments?
Factoring companies charge a discount rate on the sale of structured settlement payments. Average discount rates range from 9 to 20 percent and are...
How long does it take to sell my payments?
The length of time it will take to sell your payments depends on a number of factors. Your state statutes and the availability of the courts to rev...
How to sell a structured settlement?
Step 1: Decide how much money you need and how much of your structured settlement you want to sell. Keep in mind that the total dollar amount of the payments you would receive over time will be higher than the amount you will get from a company that purchases the rights to the payments. That’s because the company will have administrative ...
What happens after a structured settlement is approved?
After the court approves the transaction, you will send a copy of the order to the administrator of your structured settlement.
How long does it take to get a factoring company to pay you?
Step 7: Receive full payment, as specified in your agreement with the factoring company. This will typically happen within three to five business days of the court’s approval.
How long does it take to get a lump sum payment?
This will be a partial payment of about $1,000 to hold you over while until the process is complete. It can take up to three months to receive your lump sum payment.
What happens if you sell too little?
If you sell too little, you’ll have to start the process all over again and appear before a judge a second time to get additional funds. If that happens, the judge may doubt your ability to handle your finances and may be less willing to approve the second transaction.
Is there such a thing as a structured settlement loan?
Sometimes people refer to this transaction as a structured settlement loan. But that phrase is actually inaccurate as there is no such thing as a structured settlement loan. Current laws prohibit structured settlements from being used as collateral for loans.
Do people sell their settlements?
Most people don’t sell their entire structured settlement. They instead sell a portion of their payments. They might decide to sell six months’ worth of payments, leaving them with no regular income stream from their structured settlement during that time period.
Advantages to a Lump Sum Sale of Your Structured Settlement
There are a few benefits to selling all or part of your structured settlement, including:
Drawbacks to Selling Your Structured Settlement
The arrangement is intended to provide a continuous stream of income over a period of time, so selling a structured settlement isn’t always the best choice.
The Process of Selling Your Settlement
Structured settlements are very complicated contracts, so there are many documents involved when you decide to sell all or part of your interest in the funds. There are affidavits, releases and other paperwork that must be signed. Because a court usually needs to approve the sale of a structured settlement, these documents must also be notarized.
About The Author
In 2000 Clay started Superior Notary Services and revolutionized the notary public field by pioneering the mobile signing service. By offering Corporate notaries that travel to the location of the client’s choosing, Clay set the industry-standard in convenience.
What Are the Benefits of Selling My Structured Settlement?
In a word, the benefit of selling your structured settlement is liquidity.
What does it mean to sell a portion of a settlement?
Your selling options include the sale of your entire structured settlement — meaning you will no longer retain the rights to any future payments — or the sale of only a specific number of payments or a predetermined dollar amount. Selling only a portion of your payments means you will still receive periodic payments, either resuming after the date of the last payment you sold or continuing at a reduced amount without interruption.
What is the discount rate for a settlement?
The discount rate typically falls between 9 and 20 percent. In addition to the present value of your settlement, the company takes into account the number of payments you’re selling, the dates of your payments, current market rates and economic conditions, and any service fees associated with the transaction to arrive at your discount rate. ...
What happens if you sell your Social Security?
The sale could potentially affect your retirement plans, your eligibility for Social Security or other government assistance programs, and your tax obligations.
Is selling a structured settlement good for you?
But it’s not only financial hardship that leads people to selling their structured settlements.
Can a judge approve a structured settlement?
Yes, a judge must approve the sale of your structured settlement. Unlike commercially available annuities, structured settlement annuities are always subject to court approval. This does not mean that it is illegal to sell them. Selling your structured settlement is perfectly legal when a judge approves the sale. That said, there are circumstances under which a judge will not approve the sale of your settlement. This generally happens when the judge deems the sale contrary to your best interest or the best interest of your family members and dependents.
Do you need a judge to sell a structured settlement?
All structured settlement sales require a judge’s approval. The judge will consider the terms of the sale — whether you’re selling some of your payments, a portion of each payment, or your entire structured settlement — and how the sale will affect your long-term financial situation, including the likelihood that you will suffer financial hardship without the regular payments from your structured settlement.
Sell My Structured Settlement to Pay Off Debt
If you’re receiving structured settlement payments, you may be wondering, “can I sell my structured settlement payments to pay off debt?” In particular, student loan debt can be especially problematic.
Pick the Payment Plan that Works Best for You
Everyone has different options available to them when it comes to paying back their student loans, and some payment plans might suit your current financial situation more than others. For example, you may be able to extend your repayment period or you can opt for an income-based plan.
Consider Making Biweekly Payments
A large student loan with monthly payments can usually be paid off much quicker with biweekly payments. If you have the financial means to do so, this option can help to save you money in the long run because you’ll shorten the length of your loan and pay less interest in the end.
Make Larger Payments
Just like with any other loan or credit card, making more than the minimum required payment each month can help to lower your principal and reduce the amount of interest you pay over the life of your student loan.
Find Out if You Qualify for Loan Forgiveness
You may be eligible to have some (or all) of your student loan debt discharged, which is usually dependent on your line of work. It is certainly worth looking into, as there are several industries and volunteering opportunities that qualify for some level of student loan forgiveness.
Using a Lump Sum of Cash to Eliminate All of Your Student Loan Debt
Paying off your student loan debt faster can be a great accomplishment, but paying it off completely can be even better. If this is the only debt hanging over your head, eliminating it and being entirely debt-free can be liberating.
Contact DRB Capital
Are you receiving structured settlement payments and also facing a significant amount of student loan debt? You may be asking yourself, “can I sell my structured settlement payments?” Depending on the specific details and terms of your structured settlement, selling future payments for a lump sum of cash may be an easy way to pay down that debt or pay it off completely.
What to think about when selling a structured settlement?
If you’re thinking about selling a structured settlement, you should think carefully about your current finances and about what financial responsibilities you’ll have in the future.
When Should I Sell My Structured Settlement Payments?
There are many reasons you may want to sell a structured settlement for a lump sum.
Can a structured settlement be bought?
There are many specialty finance companies out there that will buy a structured settlement from you and would be happy to do so. You can easily find some of these companies through a quick Google search.
Why Do I Need Court Approval to Sell My Settlement?
State and federal laws, known collectively as Structured Settlement Protection Acts, protect structured settlement holders from predatory practices in the secondary structured settlement market.
Who approves a structured settlement?
The judge is more likely to approve the sale of your structured settlement if you can demonstrate that you have a valid reason for selling and that you understand the terms of your sale and the impact it could have on your financial well-being.
Why are structured settlement recipients vulnerable?
Structured settlement recipients may be especially vulnerable to these tactics because their contracts can be complex and the legal and financial jargon only add to the confusing nature of structured settlement transfers.
When was structured settlements enacted?
Additional regulation of structured settlements was enacted in 2001. The Victims of Terrorism Tax Relief Act of 2001 imposed a 40 percent excise tax on factoring companies that profited from the purchase of structured settlements.
Does the factoring company represent you?
First and foremost, you must understand that the attorney the factoring company sends to your hearing does not represent you or your interests. This is the buyer’s lawyer, and as such, his or her loyalty is to the factoring company.
