Structured payment settlement has been quite popular in America since 1970s. This financial instrument allows people to receive tax free payments regularly instead of a lump sum of money. At one side, structured payment settlement is a great choice as the recipients will be protected from any judgment. Besides, having structured payment settlement is a wise solution to avoid unexpected stress as well as management issues unlike receiving a lump sum. Regardless of the stability structured payment settlement might be able to provide us; sometimes there are some situations that force us to prefer having a lump sum instead. Therefore, selling your structured payment settlement will be unavoidable.
Procedures of Selling Structured Payment Settlement
Any situation which needs you to sell structured settlement payments can be the need to pay your debt, start or invest in business, buy a new or simply repair your house, fund your education, and etc. The procedures of selling your structured payment settlement are actually not complicated. However, still you need to decide how much you want to sell and go before the judge to grant your request before accessing your cash.
Guidance on Selling Structured Payment Settlement
Decide to Sell
If you have valid reasons, first you need to decide the sale of the settlement process so the sale of the payments will not affect your future finance.
Do Research on the Discount Rate and Service
This is the important step before you decide which company you will take to sell your structured payment. Every company offer different discount rate, but normally it goes around 8% – 18%. When in doubt, opt for the A+ rating reputable company with the lower discount rate.
Assure the judge
After finishing all the documents required, the court will hold a hearing where you need to justify why you need the money and that you’re not in a position which will put your and also your family’s financial future in danger.