Structured Settlement Loans – Sell Structured Settlement Payment

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Structured Settlement LoansSell Structured Settlement Payment

If you have won a lottery, a personal injury lawsuit, a wrongful death suit, or workers’ compensation case you’ll be awarded a large sum of money and your payment will surely be set up as a structured payout. But instead of having your payments stretching over twenty years you’d like to have a lump sum of money right away especially when you have problems like an unplanned emergency or job loss, need to pay college tuition or purchase a business or a new house or just have to pay off some debts.  But what if you don’t want to sell your structured settlement? Settlement loans (both post-settlement and pre-settlement) can be a lifesaver.

These loans are provided by structured settlement companies and you make future loan repayments with the interest applied to the loan principal according to terms.  You don’t have to risk your assets for the loan, you don’t have to concern yourself with background checks, employment and credit history or even how you’ll have to repay the loan because your settlement structure acts as the collateral. However, it must be taken into account that court approval must be obtained and when you apply for a pre-settlement lawsuit loan the lender company must review documents regarding your case and speak with your attorney so it may take about 90 days for the loan to be processed and funds distributed. Also lenders will provide the loan based on a percentage of the actual settlement and typically this will be somewhere between 70% and 90%.

This type of loan can even be obtained during a pending lawsuit and is known as Pre Settlement Funding, pre-settlement loan or lawsuit loan. The plaintiff can obtain the loan before the case is finally resolved and if he doesn’t win the lawsuit, he doesn’t have to repay the monies advanced. If he does win the lawsuit, he repays the original settlement loan amount together with fees assessed due to the lawsuit’s inherent risk.

Like any other type of loans structured settlement loans have their cons and pros too.

The main benefit of this loan is that you get your money right away to solve some urgent issues. Moreover, you are protected against future inflation, or you may even have enough money to invest into a business or stocks with possible solid returns. You will also have to pay comparatively low interest payments. But on the other hand you’ll get your money at a discount (minus a percentage, as lender companies give out loans to make a profit). Also, if you don’t manage your money reasonably and start “enjoying” the lump sum of money you have got in your hands, you may end up being broke.

So, if you need your money right away and are OK with these disadvantages, a structured settlement loan is possibly your best option.

Structured Settlement Loan Companies

We’ve compiled both a list of companies that provide loans against structured settlement payments. Similar to our list of structured settlement companies, we have excluded brokers or companies whose web site, including their contact information, left us without a warm and fuzzy feeling.

Be aware that the prevailing opinion is that it is not possible to provide structured settlement loans. One company we messaged to ask if they provide loans replied as follows:

“Structured settlements have specific language that prohibits the use of the structured settlement as collateral for a loan. The language in it should be similar to the following, which keeps you from being able to take a loan against it.

‘This is a structured settlement annuity and cannot be assigned or used as collateral on a loan. Payments cannot be accelerated, deferred, increased or decreased.”‘

Do you best to be patient. Read all documents carefully. Get the best advice you can.

/s/ Jovan Johnson



Structured Settlement Loan Companies

Absolute Legal Funding

(888) 696-6449 New York
(631) 339-1713 Long Island
info@absolutelegalfunding.com
absolutelegalfunding.com
2100 Middle Country Road
Centereach, NY 11720
BBB Rating: N/A

Accident Claims Loan Ltd.

(888) 715-8701
info@accidentclaimsloan.com
accidentclaimsloan.com
244 Fifth Avenue
New York, NY 10001
BBB Rating: N/A

Advance Case Loans

(312) 332-4100
advancecaseloans.com
368 W Huron St, Ste 3S
Chicago, IL 60654
BBB Rating: A+

Alliance Claim Funding, LLC

(212) 847-9565
(888) 374-2822
info@caseloan.com
info@allianceclaimfunding.com
allianceclaimfunding.com
1180 Ave of the Americas, Eighth Floor
New York, NY 10036
BBB Rating: A+

American Legal Funding, LLC

(480) 515-3698
americanlegalfunding.com
17700 N. Pacesetter Way #104
Scottsdale, AZ 85255
BBB Rating: A+

AMICUS Capital Services, LLC

( 661) 263-0030
amicuscapitalservices.com
25876 The Old Road Suite 340
Valencia, CA 91381
BBB Rating: N/A

Black Diamond Funding

(954) 520-9248
daniel@blackdiamondfunding.com
blackdiamondfunding.com
8201 Peters Road Suite 1000
Plantation, Florida 33324
BBB Rating: N/A

Bradley Financial Lawsuit Funding LLC

(561) 526-3331
injurysettlementfunding.com
7050 West Palmetto Park Road Suite 15-103
Boca Raton, Florida 33433
BBB Rating: N/A

Capital Financing

(404) 348-4475
info@injuryfinancing.com
lawsuitloans-atlanta.com
1140 Hammond Dr 110
Atlanta, GA 30328
BBB Rating: N/A

Cash In Your Case, LLC

( 800) 526-8098
info@cashinyourcase.com
cashinyourcase.com
1400 Old Country Road, Suite 414
Westbury, NY 11590
BBB Rating: N/A

Cash4Cases Inc.

(212) 684-1060
jlb@cash4cases.com
cash4cases.com
228 Park Ave South
New York, NY 10003
BBB Rating: N/A

Cochran Lawsuit Cash Advance

(888) 875-6049
info@cochranlawsuitcashadvance.com
cochranlawsuitcashadvance.com
545 8th Avenue
New York , NY 10018
BBB Rating: N/A

E Lawsuit Loans

( 800) 972-5560
sales@elawsuitloans.com
elawsuitloans.com
111 Grafton Ave #612
Dayton, OH
BBB Rating: N/A

Fair Rate Funding

(732) 612-3691
contact@fairratefunding.com
fairratefunding.com
1913 Atlantic Ave Suite 140
Manasquan, NJ 08736
BBB Rating: A

Fairfund Financial Group, Inc.

(800) 235-0876
(251) 990-4994
mail@fairfund.net
fairfund.com
19414 Liberty Road
Point Clear, AL 36532
BBB Rating: A+

Fund Capital America

(310) 424-5176
info@fundcapitalamerica.com
fundcapitalamerica.com
714 W. Olympic Blvd 710
Los Angeles, CA 90015
BBB Rating: N/A

Great Bay Capital Inc

( 843) 324-6848
info@greatbaycapital.com
greatbaycapital.com
26 Flagship Lane
Hilton Head Island, SC  29926
BBB Rating: N/A

Interstate Lawsuit Funding, LLC

(954) 946-0487
interstatelawfund@att.net
interstatelawfunding.com
5100 N Ocean Blvd # 1618
Fort Lauderdale, FL 33308
BBB Rating: N/A

JES Funding Solutions

(561) 432-9237
info@jesfunding.com
jesfunding.com
7064 Thunder Bay Drive
Lake Worth, FL 33467
BBB Rating: N/A

Law Cash

(718) 875-0605
gmerola@lawcash.net
lawcash.net
26 Court Street
Suite 1104
Brooklyn, New York 11242
BBB Rating: A

LawCapital Enterprises, LLC

(360) 694-0330
lawcapital.com
7642 NE Hazel Dell Avenue
Vancouver, WA 98665
BBB Rating: A+

LawLeaf

(888) 566-8614
info@lawleaf.com
lawleaf.com
1200-C Agora Drive, Suite 241
Bel Air, Maryland 21014
BBB Rating: N/A

Sell Structured Settlement Payments


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What is a Structured Settlement?

Structured settlement annuities are a financial instrument that is normally used to provide regular, tax free payments to personal injury victims over a long period of time. Instead of facing unexpected stress and management issues that come with receiving a lump sum of money, the recipient is protected from bad judgment that could result in spending a large portion of the money that he or she needs to manage a lifetime of injury related expenses.


How do I sell my Structured Payments?

You may need to buy or repair a home, start or invest in a business, fund a college education, pay off a debt, divorce or invest. These some valid reasons why you’d like to have lump sum in your hands rather than your periodical payments. The process of selling an annuity or structured settlement is not difficult, but it involves you taking the step to sell, deciding how much to sell and going before a judge to approve your request prior to accessing your cash.

All this process includes five steps:

  1. Make the decision to sell | you can start the sale of your settlement process if you have valid reasons for it and the sale of your payments will not have any effects on your future financial needs.
  2. Shop around to find the discount rate and service on your sale | it is important that you work with a funding company that is reputable and has your best interests in mind, uses its own money to fund (is not merely a broker), is experienced in completing the court ordered transfer process, and has A+ rating on the Better Business Bureau and very few complaints, if any.
  3. Choose the company you like best and start the sales process | you must begin the paperwork process. After you submit the proper paperwork (your annuity policy, settlement agreement or benefit’s letter so the transfer company can verify your payments, application, ID), all materials are reviewed to ensure they are complete and accurate.
  4. Have your sale approved by a judge | once the relevant documents are returned and they are fully signed, a local attorney files them with court and after that the court will schedule a hearing. This is the beginning of the waiting period. In the court you will be required to justify why the money is needed and you should be in a position to show that you are not putting your and your family’s financial future in jeopardy. Unless there are any problems with your request of transfer, the judges mostly approve the transfer at this stage.
  5. Get your money | Once approved, the judge will sign the order approving your transaction and the order is sent over to the insurance company to wire funds.

How long does it take to sell my Structured Payments?

After you’ve signed the contract, on average it takes about 45 days to receive your money. However, keep in mind that every structured settlement purchase transaction is different due to each state’s laws regulating such purchase transactions. In addition, you may qualify for an immediate cash advance to help you through a particularly tough time.

What discount rate is normal when selling Structured Settlements?

If you are considering selling your annuity, you need to be sure that the offers you are getting are reasonable and fair as you’ll have to get the lump sum reduced by a factor of the projected interest earnings, known as the discount rate. The exact discount rate that you will need to give in order to sell your structured settlement will depend upon the total amount of your settlement payments, the number of payments you have remaining, the date those payments are due to arrive, the number of payments you wish to sell etc. The longer people have to wait to receive their payments, the greater the discount rate will need to be. Discount rates from factoring companies to consumers can range anywhere between 8% up to over 18% but usually average somewhere in the middle. An average discount rate of 12% should be reasonable but there are some companies that will want to take as much as 30% discount.

Will I be forced to pay tax if I Sell my Annuity or Structured settlement?

The money you receive from selling your structured settlement payments will have the same tax treatment as the payments you receive from your structured settlement annuity.

The Periodic Payment Settlement Act of 1982 (Public Law 97-473) formally recognized and encouraged the use of structured settlements in physical injury cases by designating payments from a structured settlement as tax-free.

Section 104(a)(2) of the Internal Revenue Code clarifies that the full amount of the structured settlement payments, including the acceleration when, for example, RSL Funding purchases your annuity, is tax-free to the victim.

The Internal Revenue Service has ruled that where a claimant assigns periodic payments due to be received under a settlement agreement in exchange for a lump sum, the lump sum remains tax-free.

As part of the Tax Relief Act of 2001 (H.R. 2884) signed by President George W. Bush on January 22, 2002, individuals who must sell their structured settlement payments to meet unplanned financial needs are protected. This legislation made it mandatory for individuals to seek court approval when they sell their structured settlement payments, and works in conjunction with state laws directing how these types of transactions will be completed. In addition to benefiting and protecting the individuals, it also makes clear that annuity providers will suffer no tax consequences as a result of these transactions. The legislation states that annuity owners and providers do not now owe, nor have they ever owed, taxes as a result of these transactions.

Though, most likely you will have to pay taxes on any money that you have won, such as lottery winnings or casino earnings. These things are taxed as any other income. If you paid your taxes on the entire lump sum up front then you will not pay taxes again when you sell your payments. However, if taxes are deducted regularly, when payments are made, then you may be responsible for paying a lump sum of taxes if you sell these periodic payments.

Do you offer tips for selecting a Structure Settlement company to work with?

The best structured settlement companies are those that treat you the best, do not pressure you, and offer you the best deal with the lowest discount rate. Shop around before accepting an offer. Although you wouldn’t research settlement brokers if you didn’t need the money, a discount rate of 20% + is a lot of money to give up. Perhaps it’s worth it for you but you should give this a lot of consideration.

Should I sell my Settlement Payments to pay off debt?

This is a complicated question. If your debt is serious enough that you may end up in bankruptcy proceedings, you should speak with a bankruptcy attorney and determine whether your settlement would be protected. If it would be protected, do not sell to pay off your debt.

What is an anti-assignment provision?

The goal of an “anti-assignment” provision is to ensure that the two contracting parties will not be able to transfer their obligations under the agreement to someone else without first getting permission from the other party. One of the boilerplate clauses found in  most commercial contracts looks something like “Neither this Agreement nor any of the rights, interests or obligations under the Agreement shall be assigned, in whole or in part, by operation of law or otherwise by either party without the prior written consent of the other party.”

There are three variations of anti-assignment clauses that can be used in a contract: a standard anti-assignment clause barring any assignment or delegation, the second one is used when the parties want to prohibit assignments except if they transfer the agreement to new owners or affiliate companies (and don’t want to ask for permission), and the third type is similar to the second one except it requires permission for such an assignment. But it should be noted that only prevent “voluntary” assignments van be prevented; you cannot prevent assignments that are ordered by a court or that are mandatory under law—for example in a bankruptcy proceeding.

What is a deferred annuity?

Usually an annuity contract is created when an insured party pays an annuity company a single premium that will later be distributed back to him over time. However, sometimes an investor may choose to defer annuity payments income, installments or a lump sum until he/she elects to receive them (e.g until he/she retires). This type of annuity is called a deferred annuity and has two main phases: a savings phase, when money is invested into the account and an income phase, when the plan is converted into an annuity and payments are received.

A deferred annuity is not taxed until the income phase begins and it also provides a death benefit to the survivor(s) of the annuitant. As this type of annuities is designed primarily as retirement savings accounts, the annuitant may owe a 10% penalty tax in addition to ordinary income taxes if principal, earnings or both are withdrawn prior to age 59½.

Depending on the way the investment is made the deferred annuity earnings can be either fixed (your money earns interest at a fixed rate that will never drop below a minimum rate guaranteed by the issuing company and is tax-deferred until withdrawals are made) or variable (you choose investments from a pre-selected list of funds called sub-accounts inside of a variable annuity and the returns will vary depending on the underlying performance of the chosen investments).

  • Have a structured settlement and need a loan? We’ve put together a list of structured settlement loan companies.
  • Trying to find structured settlement companies that seem legitimate? Check out the list we’ve researched.
  • Learn more about the secondary structured settlement market.

About our Selling Structured Settlements for Cash page.

While we try to provide helpful information to get cash for structured settlement, the content on this site is not a substitute for individual legal advice regarding whether you should sell your structured settlement, its value, the term sheet provided by a settlement broker, proposed sale, whether your settlement can be bought or sold, or the reputation of a broker.

The California Bar requires that we notify you that this site is an Attorney Advertisement.

structured Settlement Loans

If you have won a lottery, a personal injury lawsuit, a wrongful death suit, or workers’ compensation case you’ll be awarded a large sum of money and your payment will surely be set up as a structured payout. But instead of having your payments stretching over twenty years you’d like to have a lump sum of money right away especially when you have problems like an unplanned emergency or job loss, need to pay college tuition or purchase a business or a new house or just have to pay off some debts.  But what if you don’t want to sell your structured settlement? Settlement loans (both post-settlement and pre-settlement) can be a lifesaver.

These loans are provided by structured settlement companies and you make future loan repayments with the interest applied to the loan principal according to terms.  You don’t have to risk your assets for the loan, you don’t have to concern yourself with background checks, employment and credit history or even how you’ll have to repay the loan because your settlement structure acts as the collateral. However, it must be taken into account that court approval must be obtained and when you apply for a pre-settlement lawsuit loan the lender company must review documents regarding your case and speak with your attorney so it may take about 90 days for the loan to be processed and funds distributed. Also lenders will provide the loan based on a percentage of the actual settlement and typically this will be somewhere between 70% and 90%.


  • Have a structured settlement and need a loan? We’ve put together a list of structured settlement loan companies.
  • Think you may sell your structured settlement payments? Consider these points?
  • Trying to find structured settlement companies that seem legitimate? Check out the list we’ve researched.
  • Learn more about the secondary structured settlement market.

This type of loan can even be obtained during a pending lawsuit and is known as Pre Settlement Funding, pre-settlement loan or lawsuit loan. The plaintiff can obtain the loan before the case is finally resolved and if he doesn’t win the lawsuit, he doesn’t have to repay the monies advanced. If he does win the lawsuit, he repays the original settlement loan amount together with fees assessed due to the lawsuit’s inherent risk.

Like any other type of loans structured settlement loans have their cons and pros too.

The main benefit of this loan is that you get your money right away to solve some urgent issues. Moreover, you are protected against future inflation, or you may even have enough money to invest into a business or stocks with possible solid returns. You will also have to pay comparatively low interest payments. But on the other hand you’ll get your money at a discount (minus a percentage, as lender companies give out loans to make a profit). Also, if you don’t manage your money reasonably and start “enjoying” the lump sum of money you have got in your hands, you may end up being broke.

So, if you need your money right away and are OK with these disadvantages, a structured settlement loan is possibly your best option.




About our Structured Settlement Loans page.

While we try to provide helpful information, the content on this site is not a substitute for individual legal advice regarding the strength of your claim, the likelihood you will win, when you may receive a settlement, the terms of a loan you are considering, or whether you should take a loan.

The California Bar requires that we notify you that this site constitutes Attorney Advertisement.

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