Do you need to trade in your structured settlement for cash?
We all come up against unforeseen events in our lifetimes, and sometimes these situations demand that we have access to hard currency in a short amount of time, so if you are in receipt of structured settlement payments then it may be time to cash in.
Cash for structured settlement payments can ensure that you get through a financial emergency, and so it’s a relief to be able to call upon this as a last resort to your money crisis.
However, it’s not always easy to cash in your structured settlements – often you need to prove that you have a real and pressing need for doing so.
Reasons for trading a structured settlement for cash
You might be thinking, “Should I sell my structured settlement?” or “Are my reasons for selling my structured settlement good enough?”
Indeed, it’s true that it’s not always easy to sell a structured settlement for cash. A court will want to see a worthwhile reason for you doing so.
A structured settlement sale is not illegal, but the courts don’t like to see them happen without good reason, and so yours will need to be a valid one.
Emergency situations that a court will consider as valid include medical emergencies, loss of employment or a divorce.
It’s possible to trade all or part of a structured settlement to help you out in such cases, and doing so will provide you with instant funds to remedy the financial problems you are going through.
When cashing in your settlement, note that it’s your responsibility to provide all of the evidence to a court relating to the transaction you wish to undertake.
Once this is done, you will need to attend court proceedings where a judge will make a decision about whether or not your situation warrants forwarding payment of some or all of your structured settlement money.
The judge will make an assessment of every factor, including reasons why you are selling the future payments you are entitled to, as well as things like discount rates and so on.
Once he has carefully examined all of the pertaining factors, the judge will make a decision and issue a court order which confirms your payout.
Finding a structured settlement for cash buyer
Before you go to court, you are also going to need to find someone who is willing to buy your structured settlement from you.
Usually in such cases where the recipient of a settlement needs cash urgently, they go to structured settlement brokers or similar companies that specialize in buying the future payouts you are entitled to.
Take note that while there are lots of companies out there, they don’t all offer the same kind of deal – many of them charge very expensive rates so do take your time to find yourself a good deal.
Once the decision about your structured settlement has been made by the court, your worries should be over. The court will assign future structured settlement payouts according to the terms of the transaction you have made with your broker, and you will be awarded the agreed upon sum of money immediately.