Can I Sell My Structured Settlement Cash? Yes You Can – here’s the Process
If you find that you are thinking to yourself, “I should sell my structured settlement for cash”, you should know that the process usually takes two to three months. Though, in some cases, Strategic Capital has completed a purchase in as little as 18 days! So, while the process involves a number of steps, there are ways to speed it up. With Strategic Capital most of the steps are done for you, but some of the work can be done by nobody except for you.
Most of the steps in the process are common to any person who has wondered about how to “sell my structured settlement for cash”, no matter how much your payments are or where you live. Of course, your Strategic Capital expert can give you the details that are specific to you, but the graphic below shows you the general process that you will go through in selling your settlement. The graphic is followed by a list that provides just a bit more detail without the visuals:
- The first step after you wonder “can I sell my structured settlement for cash” is when you contact some factoring companies and get a competitive quote. Be sure to choose a company that is reputable and that you feel comfortable with. You should compare quotes from multiple companies and make an informed decision of who to work with.
- Once you contact Strategic Capital, one of our structured settlement experts will contact you. They will ask you some questions to better understand your needs and to get all of the details of your settlement. It is important that you are honest and forthcoming as this information is used to provide your specific quote and begin filling out any legal paperwork that is needed should you decide to sell.
- You will then receive an official quote from the company which should detail all fees and the net lump sum payment to you should you sell. Ensure that you understand the quote and ask any questions that you have. Ensure that you compare the net lump sum price, AFTER all fees, between any competing quotes that you get.
- The company will then send you copies of all disclosures and contracts to sign and send back. Want to know, “what can I do to sell my structured settlement for cash faster?” The more quickly you return signed paperwork, the faster you will get your money.
- The factoring company’s lawyer will begin filing documents on your behalf. These will be legal documents filed with the court; they will be the same documents that you reviewed and signed. The lawyer will contact you if any additional information or signatures are needed.
- A hearing will be scheduled with your local court. The factoring company’s representative will inform you of the date and tell you how to prepare for your hearing. They can also tell you what to expect at your court hearing.
- While the lawyer and factoring company will handle most legal hoops, you may need to show up in court so that the judge can talk with you and determine if you understand what you are doing and if selling your payments is in your best interests. The judge will review your paperwork, including the terms of the sale and the reason you cite for needing the money.
- The judge will then approve and sign your sale order; in rare situations your sale may be denied at this stage, but this rarely happens with Strategic Capital.
- The approved sale order will be sent to the insurance company that pays your annuity and their acknowledgement will be requested.
- Soon after you will receive your funds from the company who is buying your payments and the company will start to receive your payments instead of you.
So, if you wonder, “How do I sell my structured settlement for cash?”, just pick up the phone. Please call us should you have any questions or inquiries about any selling your structured settlement payments and the process involved 1-866-256-0088
Structured Settlement for Cash
Can I Get a Cash Advance on a Structured Settlement?
Structured settlements are very common. America has billions of dollars tied up in these payment programs. For all their benefits, though, they can be lacking in many ways. In most instances, a structured settlement will offer a specific amount of money each month over a long period of time. Once set, you can’t get more money per month or increase the frequency of payments. For those who find that their financial needs are greater than what their settlement offers, the situation begs the question, “Can I get a cash advance on a structured settlement?”.
The Short Answer
To give you the short answer, yes, you can get a cash advance on your structured settlement. This gives you the means to improve your financial situation right away. However, the situation is not necessarily as simple as it seems.
In reality, any time you consider getting a cash advance against your structured settlement, you’re basically selling a portion of your payments to a buyer in exchange for cash on the barrelhead. You don’t have to sell all of your settlement to get a cash advance, and most people don’t. In fact, selling only part of the settlement is the most common action for payees, though full settlement sales are certainly possible as long as they meet the necessary legal requirements.
What to Know
There are several things to know if you’re asking the question, “Can I get a cash advance on a structured settlement?”. One of the first is that it’s hard to do this on your own. It’s not the same thing as putting a for sale sign on your car’s windshield and parking it by the road. You have to find the buyers – they’re not going to come to you except in certain instances. Not only will you have to find buyers, but you’ll have to make sure that they’re reputable and in adherence to both federal and state laws regarding structured settlement sales.
However, there is a way that you can avoid doing this on your own and to get buyers to come to you. Working with a reputable structured settlement company ensures that you have the helping hand necessary to streamline this process, as well as to take the confusion out of it. You can get a cash advance on your structured settlement and have buyers come to you to make offers, but you’ll need the help of an experienced broker.
Get a Lump Sum Payment for Your Structured Settlement
Get the money you need when you need it.
When you sell your structured settlement to AnFed Bank, you’ll have the peace of mind of knowing that you’re dealing with an FDIC-insured financial institution. Plus, you won’t have to hassle with a middle man to receive a cash payout for your structured settlement, so you’ll get more of the money you’re entitled to, and you’ll get it faster.
AnFed Bank will provide you with a lump sum payment to meet your current financial needs, and our friendly banking experts will guide you through every step of the process to ensure a smooth, simple transaction.
Take the next step and cut out the middle man. Give Annuitants Federal Bank a call today!
Why AnFed Bank?
Annuitants Federal Bank is a division of BofI Federal Bank, a federally chartered, publicly traded (NASDAQ: BOFI), FDIC-insured bank. Selling your structured settlement to AnFed Bank for a lump sum payment offers a number of benefits in addition to the cash that you will receive in a timely, efficient manner:
- Our knowledgeable bankers are available to walk you through the process and make sure your needs are met.
- We understand how important your payments are to you. We will pay you a lump sum in cash that reflects the true value of your structured settlement.
- Other companies are simply brokers who wedge themselves between structured settlement annuitants (such as you) and the financial institutions that actually purchase the payments (such as us). AnFed Bank cuts out the middle man so you get more money faster. Why pay a broker when you can go direct?
Please take a look at our Structured Settlements FAQs and then contact one of our friendly, experienced AnFed bankers to find out more about how we can help you get money for your structured settlement quickly and hassle free.
Myths About Selling a Structured Settlement for Cash
There’s a whole world out there of financial products I have very little understanding about. Apparently, there’s a market for buying and selling “structured settlements” for cash after you win big money after a court case. The following is a guest post by Jason from JG Wentworth which pays people cash now for settlements which are paid over time. Interesting concept and something which is worth learning about.
When a plaintiff settles a court case and is awarded a large amount of money, it may be decided that the settlement will be paid over time in installments rather than a single lump sum payment. This type of arrangement is called a “structured settlement”.
The advantage to having a structured settlement is that the money is tax-free if set up properly. Structured settlements can also be beneficial because they provide a source of income for the recipient well into the future, where as lump sum payments will more likely be spent if the recipient does not manage their money responsibly.
Structured settlement payments can also be a disadvantage, trapping the recipient into periodic payments when they may want cash now. Many settlement recipients choose to sell their settlement payments for a lump sum of cash to start a business, pay for college tuition, purchase a home or other various financial reasons.
Handling a large lump sum of cash can be exhilarating. And it can be a little unsettling, too. Money causes people to worry, and worry spins half-truths or unfounded myths about financial issues at hand. Selling your structured settlement into a lump-sum payment is an opportunity to increase your net worth — not limit it. All it takes is a little guidance from a structured settlement buyer and a plan of action for your cash to breakthrough any doubts.
Apparently there must be some controversy about structured settlements and Jason is here to help clear the air.
MYTHS ABOUT SELLING A STRUCTURED SETTLEMENT FOR CASH
I have to cash out all of my settlement – NOT TRUE. An experienced structured settlement company is there to figure out your exact cash needs, be it a full payment, partial payment, or a shared payment. Your structured settlement is an important asset and is always managed as such – no matter how much or how little you use of its resources.
I cannot invest any of my structured settlement – NOT TRUE. A home is an investment. Paying off your debts in order to free up more money for retirement savings is an investment. Funding a child’s or even your own education is an investment. Structured settlement cash is an opportunity to use both creativity and wisdom to establish a sound financial future.
This will affect my monthly budget – NOT TRUE. If you are using additional settlement cash to help pay the bills while using your time to earn a higher degree that pays a much higher income; or if you are using a large lump sum to purchase a profitable business; you are creating an opportunity to expand what you bring in each month in a positive way.
I’ll lose a lot of value if I liquidate my settlement – NOT TRUE. In fact, inflation will do the most damage on your structured settlement if you do not allow it to be distributed into one or more lump-sum payments for better-returning investments. Take a settlement payout and place it in a dependable asset, like a piece of property or business, and watch the value of your cash increase.
It costs a lot to change my settlement to a lump sum – NOT TRUE. It costs far more to take a loan out with a high interest rate or to continue to stay in debt over credit card or medical bills. A reputable structured settlement company is run a lot like your own finances – very carefully and with concern for a multitude of parties involved. When you sell a portion of your settlement for cash, a host of financial professionals are able to navigate your financial needs to make sure you understand their number one priority is the exact same as yours: to establish a bright financial future.
Is it just me, or have you never heard of such a thing before? Let’s say you are found guilty for setting on fire your neighbor’s prized Chow Chow puppy dog. The dog so happens to earn his owner $100,000 a year and was expected to live and earn for 3 more years. The jury decides you’re going to have to pay the owner $300,000 out of your own pocket because you don’t have enough homeowners insurance or an umbrella policy. Instead, you agree to pay 10 installments of $30,000 a year for the next 10 years.
Meanwhile, the owner of the Chow Chow is thinking he doesn’t want to wait 10 years to collect his $300,000. He wants the lump sum now. Unfortunately, you only make $80,000 a year and have $10,000 savings so the most you can pay him is $30,000 a year. What to do? I guess you call the guys over at JG Wentworth and see how much they’ll pay for your $300,000 settlement. Perhaps you can get 80 cents on the dollar, or $240,000 upfront, perhaps not. I guess it all depends on how desperate you are for the cash up front, and what kind of terms JG Wentworth or other structured settlement for cash firms are willing to give you.
Another scenario I can think of is if you are so lucky as to win the lottery. Sometimes, you have the option of taking the big winnings in one lump sum. However, often times, the state only pays you out over a set number of years. In this case, you can ping a firm such as JG Wentworth to see if you can sell your future lottery winnings at a discount, since it’s all about the present value of money. It’s important to have assumptions on inflation, investment performance, risk free interest and so forth. At the end of the day, winning the lottery is a good problem to have!
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In a personal injury claim, the damages award issued to the plaintiff can sometimes be very great, often in the hundreds of thousands of dollars. In such cases, there can be concerns over distributing the damages in one lump sum payments (such as tax consequences, overspending, etc.).
Thus, the plaintiff is usually given the option to receive monthly payments over time rather than receiving one lump payment. In such cases, the defendant’s insurance provider may utilize an annuity for the damages payments.
An annuity company works with the insurance provider to help with payments (“annuity payments”), thus gaining some profit from the payment arrangement. Such types of payment arrangements are referred to as structured settlements, referring to the organized manner in which the payments are being made.
What Is a Structured Settlement Cash Payout?
When referring to structured settlements, the term “cash payout” can have a few different meanings. First, some people refer to the option of receiving a lump sum as the “cash payout” of the settlement. What they mean is that the plaintiff has chosen to “cash out” the settlement amount rather than receive monthly payments. And technically, “structured settlement” refers to the structured annuity payments rather than the lump sum form of payment.
But in most cases, a structured settlement cash payout refers to a type of arrangement where a financial company actually purchases the plaintiff’s structured settlement. The company then distributes an immediate lump sum to the plaintiff in exchange for the structured settlement. This is often an option when the plaintiff is locked into inflexible periodic payments, but needs additional cash immediately.
In other words, the plaintiff “cashes out” their structured settlement through a funding company. In many cases, the plaintiff has a choice of selling their entire structured settlement or only a portion of it.
What Are the Benefits and Disadvantages of Structured Settlement Cash Payouts?
Receiving cash for structured settlements has many advantages and disadvantages. Some benefits of selling your structured settlement include:
- Being released from inflexible annuity payments
- Obtaining access to a greater portion of your settlement award
- In some cases, the person can make a profit by selling their settlement to a funding company
- Avoiding losses from periodic payments due to inflation, annuity commissions, and other factors (periodic payments may actually reduce the overall amount that the plaintiff receives in comparison with an initial lump sum payment)
Some of the disadvantages of structured settlement cash payouts include:
- Sales of structured settlements are not always allowed by law, depending on the laws of the jurisdiction and the nature of the structured settlement
- Susceptibility to fraud and scams- there are many bogus “funding” companies that take advantage of persons who have won structured settlement awards. For example, a fake company may promise a payment, but will never issue the payment, and then use the plaintiff’s personal information for fraudulent purposes.
- As with an initial lump sum payment, the distribution of large amounts of cash can be unfavorable (especially for young or inexperienced persons who will overspend the money)
Thus, you should always be cautious and weigh all the various factors if you are considering getting a structured settlement cash pay out. In many cases, a person will want to cash out their structured settlement simply out of impatience or as an impulse decision.
Lack of guidance can lead to serious losses for the plaintiff, so it’s advisable to obtain financial and legal counseling when dealing with changes to a structured settlement.
Should I Hire a Lawyer?
Choosing a cash payout for structured settlement is a major decision. It can often involve complex interactions between personal planning and state laws. If you need assistance with a structured settlement cash payout, it’s in your best interest to contact a qualified lawyer for advice. Your attorney can provide you with guidance and help explain your options to you. Also, in the event of a legal dispute or violation over the structured settlement, your lawyer can represent you in court during a lawsuit.