If you’re looking to sell a structured settlement, you’ve come to the right place. We’ll go over how a structured settlement works, why to sell it, and what you can do with your money.
Selling your structured settlement means you can put this chapter behind you. Whether you’ve been in an accident or another civil lawsuit, it’s time to get the money you’ve been awarded. Here’s a round-up of everything you need to know about structured settlements and how to sell them.
What is a Structured Settlement?
A structured settlement is the amount of money awarded to one party during a civil lawsuit judgment. This money is paid over a series of defined payments in the future. You’ll likely receive monthly or yearly payments, for example. Most often, you won’t be taxed on payments given for personal injuries.
Let’s say you win a personal injury lawsuit. The person responsible for the accident is required to pay you a set amount each month or year for a designated period. Payments are typically paid through an insurance company.
How Does a Structured Settlement Work?
If you’ve been in a car accident, for example, the court could award you a structured settlement. Let’s say your yearly payment award is $25,000 for four years.
Once the four-year period is over, your structured settlement payments stop. Your total awarded settlement is $100,000. With a structured settlement, if you’ve accepted the yearly payments you can’t switch to a lump sum.
Why Sell a Structured Settlement?
Since monthly or yearly structured settlement payments aren’t awarded as a lump sum, many people look to sell their structured settlement. This is where a structured settlement company or attorney comes into play. They can help you navigate payments, tax implications, and accessing your cash.
There are many reasons someone would want to sell a structured settlement. Examples include paying off debt, buying a home, purchasing a car, or paying bills. You may also want to pay for tuition or a medical bill.
How to Sell a Structured Settlement
Unless you sell your structured settlement, you’ll only be given your set monthly or yearly amount. It’s very difficult to sell your structured settlement on your own. It’s always advisable to use a structured settlement attorney or professional settlement company.
Selling a structured settlement also doesn’t mean you need to sell it in one lump sum. You’re actually able to sell a percentage and still receive the rest as a monthly payment. To start the process, you’ll need to contact a professional team of settlement experts.
This team consists of lawyers who specialize in purchasing settlements and getting you cash. This is not a loan. You won’t need to repay any of your settlement. The settlement company takes care of everything.
Selling a Structured Settlement 101
If you’re looking to sell a structured settlement, you want a team of professional advisors and lawyers behind you. Let them take care of getting you a lump sum payment or taking out a portion in cash.
You can use your settlement payment to pay off debt or buy a home, for example. Calling the pros will get you one step closer to your lump-sum payment. For more money and finance tips, head to the blog section.