People sometimes sell structured settlements to which they are entitled. There are many different reasons that they do this and, in many cases, they have to prove that they have a serious need for that money before a judge will approve selling the structured settlements. This is not always the case, but it is sometimes.
Without getting into the legal specifics of selling your structured settlement, here are some of the reasons that people choose to make this move. Most of them are not hard to understand and likely relate to things that everybody has gone through at one time or another.
Accidents and Injuries
Some people get structured settlements because of an accident or an injury they were involved in that occurred because of someone else’s negligence. There are times, however, when that same person may become injured or very ill once again and when they need to sell the settlement. According to Bankrate, there are in excess of 35 million annuity contracts in place right now, and that was as of the end of 2007. Many people who receive income in this way, but sometimes it’s not fast enough.
People who end up suffering an illness, and injury or some other issue that causes them to lose work or have to pay a great deal of money out-of-pocket sometimes choose to sell their structured settlement to make life a bit easier. This is one of the most common reasons that people do this.
Sometimes, people who work very hard, play by the rules and do everything they’re supposed to do still find themselves in very bad financial straits. This has particularly been the case during the Great Recession, when many people found themselves out of work and unable to make ends meet.
People who are at risk of losing their homes, who are in a great deal of other debt and we need a way out sometimes choose to sell their structured settlements so that they can, essentially, get a fresh start. For people who happen to have a very large structured settlement, all they need to do, in some cases, is sell some of their structured settlement off so that they get enough money to pay off the debts that they have now and then they can return to receiving the structured settlement payments when the funder has been paid off.
Sometimes, the reasons that people choose to sell off some of their structured payments is actually a very positive one. For instance, they may want to go to college or a tech school to get training so that they can work in a new field. They may also need to do work on their property to bring up the value before sale. There are many different reasons why people might choose to do this.
No matter what your reason might be, you should give it serious consideration before you do decide to sell off your structured settlement or, if you don’t plan to sell off the entire thing, some of it.
What It Offers
The main benefit to selling off a structured settlement is that you get your money right away. This is what people really want when they do this. No matter what reason is behind it, they have some compelling reason to need a lump sum of cash right away and, because they already do have the structured settlement coming, there are financial options available that allow them to do this.
When people sell their structured settlement, they do have to take into account how they’re going to handle it with taxes – if it does require some sort of a different strategy – and they need to determine exactly what they intend to do in the time that they will be receiving payments, if they will go back to receiving payments at some time in the future. For people who are employed, this usually isn’t a problem at all. They simply live on the money that they make it work until their structured settlement payments resume.
For people who depend entirely upon their structured settlements, the logistics may be a little bit different. Talking to an attorney, a financial planner or, conversely, someone who understands money quite well may help you to understand whether this is really the best move for you to make. For some people, it absolutely is the best move to make. Because the money is yours already, all the structured settlement is doing is making you wait to get it at intervals. A company such as Cash Future Payments can come in, give you the money that you are entitled to and then assume the payments from the structured settlement until the amount borrowed and their fees are covered.
It could take over 30 days for you to get your payment if your application is approved. This isn’t because of the logistics of getting the payment, it’s because the legal system involved and the fact that a judge will likely have to have a hearing where they will look at your situation and determine whether you have a compelling reason to sell your settlement payments. There’ll also be a cooling off period where you have the option to change your mind about selling your structured settlement payments.
The thing to remember is that you remain in control during this entire process. One of the reasons you may want to consider this is that, between the nature of the transaction and the fact that you get your money in a lump sum, you are afforded a great deal of control over what happens with your money. If you have any other questions about why you may want to do this, feel free to contact us at any time and we will be glad to talk to you about your options and give you as much information as possible about what you need to do to get started.