There are many reasons that a person could choose to sell structured settlement payment. The money might be needed to pay off unexpected medical expenses, reduce debt on high interest credit cards or loans, pay for college expenses or to catch up on delinquent mortgage payments.
When you want to sell structured settlement payment, you have to find out if your state will allow the sale. Presently, most states have laws that permit the sale of structured settlements, but they generally require the approval of a judge through the courts.
The purpose of structured settlements is to provide the recipient with a consistent and stable source of long-term income. They usually are the result of settlement of a personal injury lawsuit. Lottery winnings are typically paid out in annuities.
Individuals who have been injured are frequently unable to work and will need long-term medical care. These funds are set up to ensure that the injured person will be able to pay their usual living expenses in addition to continuing medical expenses. The courts do not usually allow annuitants to sell all or even part of these future payments unless they can prove that the decision to sell structured settlement payment will enhance their quality of life.
The purchasers of structured settlements can be investment firms, individuals and financial institutions. While it is unusual for a bank to actually purchase a structured settlement, they will oftentimes make a loan using the structured settlement as collateral. It is important for a person wanting to sell structured settlement payment to do their research thoroughly to be sure they are dealing with a well-established and reputable buyer.
Since the courts will rarely approve the sale of an entire structured settlement, most annuitants only sell a portion of their annuity payments. The purchaser of a structured settlement will charge fees that can range from 30 to 40 percent of the amount of the funds advanced.
The decision to sell structured settlement payment is very serious and will have a significant impact on a person's future income, especially if that income is needed to pay for medical expenses. The annuitant must take every caution in choosing a funding company and be absolutely certain that they are working with a trustworthy individual or organization.
