Many people looking to sell their settlements do it for a variety of reasons. The decisions are often dependent on the situation of life at that point in time. However, as you make a decision to sell it is important to make sure that the money is spent on something that will add value to you and your family. Therefore, the 5 good reasons for selling your structured settlement are as follows:
- Buying a home or trying to avoid a foreclosure
- Engaging in a major home repair like buying a new roof
- Opening a well-researched new business or adding more funds to an already flourishing business
- Going back to college or paying for your child’s education
- Paying an expensive medical bill.
Selling your settlement to loan money to a friend, fund a family holiday, buy a luxury car or fund an expensive lifestyle is a sure way of ruining your financial future especially when you don’t have a strong backup option. Most sellers of settlement lost heavily because they loaned out funds to friends and family with hopes of recouping the loaned money and some. If you are not going to manage the funds realized from the sale or use it yourself to achieve something of value, you may regret selling a few years down the line.
It may take up to 45 days to get the funds from your sale. Therefore, you need to have a plan in place to take care of your financial needs during this window. This is why majority of people only deal with companies that can offer upfront payment. You can get money up front here.
What type of payments can you really sell?
There are different types of structured settlement payments and periodic payments. They include claims as a result of a lawsuit, lottery payments and even pensions. People generally sell, workers compensation settlements, sexual harassment settlements, wrongful dismissal settlements, personal injury settlements, lottery payments, etc. However, selling the settlement is mostly reliant on how the initial terms of the agreement was setup. This is why it is important to consult a financial advisor to help you determine if your settlement is fully qualified for sale. In most cases, the settlement will qualify for sale.
Who is allowed by law to make structured settlement sales?
Generally, the law allows virtually anyone in the United States to sell their periodic payment and structured settlements. If you are selling from abroad however, you need to confirm what the law says in your current location.
To sell your settlement in the U.S., you need to get approval from your state court. Adults that do not have any cognitive problems and have the right paperwork will most of the time, get approval to sell their settlement payments. Also, the court will approve the sale if they feel that a sale is in the interest of the selling party. However, the approval may stall if the settlement was awarded to a minor, an elderly individual or people unable to take care of themselves. However, the sale will be approved if the court can establish that it is in the interest of the said individual.