5 Lessons Learned: Settlements
How to Go about Selling Structured Settlements
A structured settlement is an insurance arrangement where a personal injury claimant agrees to receive some part of the payment on an agreed schedule. Although these payments provide a comforting and predictable source of income, sometimes, they may be too small to continue meeting their needs. There has been a rising number of people selling all or just part of their structured settlements to get a certain amount of cash they need. Before making this huge step, it’s important to understand the right steps to follow when selling structured settlements.
Determine if selling your structured settlements is the most suitable option for you or your family. At this point, you will have to ask yourself a number of key questions. Do you really need the cash now? Do you have valid reasons for selling? Some valid reasons include paying for education, buying a home, paying off credit card debt and starting a business. Is selling your settlement the best way you can raise cash? Is this decision going to impact you financially? Answering these questions will help you make an informed decision.
Find out the real value of your structured settlements. Take some time looking for the most experienced companies buying structured settlements in the market. It’s advisable to get at least three quotes for comparison from different companies and select one that offers you the most competitive and reasonable offer. Ensure that the quote comes with written details like home many months of your settlement rights you plan to sell and how much you will be paid. By working with an industry leader, you are assured of a smooth process and getting your money as soon as possible.
Have all your documents ready, especially those needed to verify the structured settlement payments. The documents should include the settlement agreement signed by both you and the insurance making the payments. Depending on your state, the regulations related to this process may vary. In most cases, you will need to have a local lawyer to guide you before signing any agreements or consult a qualified professional specializing in structured settlements. If you accept the cash offer, documents will be forwarded for to sign, after which you return them, opening up the way for the legal process.
Once all documents are signed, your lawyer files them in a court of law. A hearing is then scheduled, meaning that you will have to wait. While you wait for approval by the judge, you can request to have settlement cash advance. During the court hearings, you will stand before the judge to explain why you need cash and also prove that your decision will not cause financial problems to your family. Once the court has accepted the transfer, the annuity buyer will receive a transfer order for acknowledgment, after which you are paid the money. By following these steps, you will have a better understanding of selling structured settlements.
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