How to Sell Structured Settlement Payments
The process of selling your structured settlement payments is fairly straightforward. Structured settlement companies complete more than 1,000 transactions a month.
- Make the Decision to SellIf you need immediate access to cash and a buyout won’t hurt your financial future, it’s okay to make the decision to sell. Talk with your lawyer or accountant before making this decision to ensure it’s in your best interest.
- Contact UsOur mission is to help answer your questions about annuities, including where to start the process. Our representatives are always ready to talk you through the annuity selling process and help you find a factoring company that works for you.
- Get a Free QuoteIf you decide to work with our trusted partners, you can get a free, competitive quote on your structured settlement or annuity. We always recommend calling around to compare quotes so you’re sure you get the best price.
- Set a Court DateAfter all paperwork is submitted, you’ll be able to schedule a court date to address your sale. You’ll need to present the reasons for selling your payments to a judge prior to receiving your buyout.
- Get a Cash AdvanceWhile you wait for your court date, the factoring company you work with may be able to offer you cash up front, before the sale goes through.
- Cash in Your HandOnce the court accepts the transfer, you should have access to your money within one or two days, although this can depend on the factoring company’s policy and the banks.
The Legal Process
Selling the rights to future annuity payments is a legal process. Annuity and structured settlement buyers must comply with state and federal laws — also known as Structured Settlement Protection Acts (SSPAs) — that safeguard your rights while providing rules covering the transfer of structured settlement payment rights to a third party.PRO TIPCongress promotes and regulates settlement use. They passed the Federal Periodic Payment Settlement Act in 1982, ensuring that settlement revenue is not accompanied by local, state or federal taxes.
In addition to complying with state and federal regulations, selling structured settlement or annuity payments requires court approval. Once all paperwork has been completed and submitted, a judge is required to approve the transfer in order for the sale to be completed. The judge is meant to ensure your reasons for selling are legitimate and in the best interest of any dependents. They can also deny a sale if they believe you are receiving bad advice or a faulty bargain from a structured settlement buying company.More information on how to sell your annuity and the legal implications:
- Structured Settlement Annuity Companies & Buyers
- Tax Consequences of Selling Payments
- Getting Court Approval for Structured Settlement Transfers
- Structured Settlement Protection Acts (SSPAs)
Can All Annuities Be Sold?
While most annuities — including lottery winnings and structured settlements — can be sold, the law stipulates a few annuities are not eligible.Annuities not eligible for sale include:
- Veterans’ benefits
- Social Security benefits
- 401(k) or pension benefits
- Worker’s compensation payments
- Divorce settlement payments
- Child support payments
How Long Does It Take to Receive Funds?
Selling your structured settlement payments is a legal process that can take anywhere from 45 – 60 days to complete. The timelines may vary based on individual state laws surrounding the sale.
Is There Any Way to Get Money Now?
Annuity.org’s partners offer cash advances that can get access to some of your funds as quickly as three business days after your purchase has been approved.
If you need help deciding which factoring company to work with, are in immediate need of cash or still have questions about the annuity selling process, please call us. Our mission is to help you understand annuities and structured settlements so you can make the best financial choice for your family.
Regardless of how you find a buyer, all reputable factoring companies should:
- Staff helpful customer service representatives
- Avoid high-pressure sales tactics
- Offer a low discount rate
- Encourage the seller to talk with other buyers
- Encourage the seller to talk with their attorney or accountant
- Have positive reviews on review sites
- Employ experienced attorneys to facilitate the sale process
- Offer cash advances
- Let you read the paperwork before signing