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Structured Settlements — No Comments
11
Nov 10

Five Important Steps Before You Sell Your Structured Settlement: Introduction

With so many companies promoting selling all or a portion of your structured settlement, you may find yourself considering this option.  Whether your structured settlement is the result of a worker’s compensation claim, personal injury, or property loss, the option to convert your structured settlement to a lump sum could becoming increasingly more attractive as a means to meet financial demands.  Unfortunately in today’s economic climate, many are resorting to options they might not otherwise have considered.  Before making the decision to sell your structured settlement, it is important to arm yourself with the necessary information to allow you to make the best decision possible for your circumstances.  As with most things, there are both advantages and disadvantages to structured settlements.  One of the advantages is that the settlement guarantees a specific amount to be paid over a period of time.  This not only protects you from rapidly depleting the settlement, but it also provides a dependable revenue stream over the course of the settlement schedule.  Conversely, the disadvantages include the inflexibility of not being able to access the money when you need it and the loss of potential investment returns.

Prior to 2002 the tax benefits of a structured settlement benefited both the company making the payments and the recipient as the payments made were tax free.  In order to protect the injured party, Congress granted these tax benefits to structured settlements as a means to keep the injured from prematurely depleting their recoveries.   In order to prevent the factoring transactions from undermining the policy objectives of the structured settlement, Congress passed HR2884 which resulted in Internal Revenue Service 5891 requiring all structured settlement factoring transactions be approved by a state court.  The Structured Settlement Protection Act imposes a 40% excise tax on the net sale of a structured settlement that does not meet the requirements of the state and federal statutes.  All states with the exception of Vermont, North Dakota, Wisconsin, and Wyoming have passed legislation regulating the buying and selling of structured settlements.   Over the next five posts, we will be discussing five steps that are essential before you commit to sell a portion or all of your structured settlement.

  1. Do your due diligence
  2. Seek legal advice
  3. Seek financial advice
  4. Decide what you are going to sell
  5. Seek the best offer
Structured Settlements / Tips — No Comments
10
Oct 10

What to Look For in a Company When Selling a Structured Settlement

You hear the term “structured settlement” practically every day. Most often it will be in the context of selling it to certain companies.

Keep in mind that the purchaser is looking to make a profit. Your goal is to get the most money possible. Go slow in deciding when and to whom to sell. Do your research, take bids and insist that certain terms and rights be met. It is your money. You are in control. If the amount of the offer and the conditions of the deal don’t make for a fair exchange, look elsewhere.

Remember, you don’t have to sell the entire settlement. You can sell just a portion if you prefer.

Here are steps you can take to protect yourself and ensure you are getting the best deal:

1. Have an idea of what your structured settlement is worth, keeping in mind a fair discount rate. This discount is where the company’s profit comes from and why they are willing to purchase. If this doesn’t meet your expectations then maybe selling isn’t right for you at this time.

2. Make sure the company you’re considering is legitimate. As with any other business, the Better Business Bureau is an excellent place to start. You will also want to do a web search for complaints against the company. An easy way to do this is to just “google” the name of the company followed by the words “complaints” or “reviews”.

3. Don’t rely on the integrity of any one company. Get multiple quotes. Don’t share the offered amounts with the other companies who will be giving quotes. You don’t want a previous offer to be a factor in new bids. This is also a good way to weed out the not-so-good companies. If someone offers a ridiculously low offer they probably do not have your best interest in mind. Conversely, if someone offers an unreasonably high offer, this is suspicious as well. It’s fairly common to offer the highest initial bid and then do a series of stalls until the client is desperate to take a much lower offer.

4. When it is time to write the agreement, be sure it is laid out the way it was discussed.

5. Have a definite closing day. This varies by state, but eight to twelve weeks are normally sufficient. Insist that there are penalties in place such as an additional payment per day, due to you on closing, if the settlement company fails to close on time. It is possible for them to stall so they earn some extra interest on the money while they make you wait.

6. Know your rights. There are laws in place to protect your interests. Although it may seem like a nuisance, you will need to go through the court system in your state to have the settlement approved. This is for your protection.

Cashing out a structured settlement is a big financial decision so go slowly and plan carefully.

Tips — No Comments
3
Aug 10

Getting Cash for your Structured Settlement Payments

Structured settlement laws in the United States have made the business of receiving a payment from a court settlement or a lottery win very difficult. It is almost impossible to receive the full amount in cash when it is awarded, and most parties who have to pay a settlement will much rather opt for a monthly or quarterly payment to ease the financial burden. But where does this leave you? You are entitled to your cash, but by law the party responsible for paying it doesn’t have to release it at more than a trickle. But, did you know that you can get Cash For Structured Settlement payment agreements by selling them?

That’s right, you can get Cash For Structured Settlement payment agreements by selling them off to larger investors or institutions who will buy them at a slight discount in return for giving you all of the cash up front. There are a lot of companies who will offer to buy your structured settlement agreement, but the percentage of your lump sum they will charge will differ greatly. A general guideline is that companies can charge between 7-12% to take your payments off your hands and give you the cash instead. With interest on the payments calculated you get almost the entire remaining amount, even after the company takes its discount!

Unfortunately, finding a company who will give you Cash For Structured Settlement payment plans is not as easy as it sounds. Many of the larger companies can offer you more cash, but they also have higher overheads, which stops them from being able to offer you as much as they could. Smaller companies may also offer you a large amount of cash because they do not have these overheads, but they might also be trying to grow and will charge you more for their services.

So what do you do if you want to get Cash For Structured Settlement payment agreements right now? At QuoteMeAPrice.com you can put up your payment agreement on our board, and let hundreds of investing companies make a bid. Then you select the bidder who offers you the best deal! Now you can find the company who will offer you the largest lump sum, without having to call up dozens of different investment firms! This is by far the best way to sell your structured settlement and get the highest amount of money possible for it.

Why go in search of a company who will offer you a decent amount of cash when you can post your structured settlement and let them come to you! You can get all of your cash right now to put into your home, grow your business or take a dream vacation! Don’t settle for tiny monthly payments that make no real impact on your financial situation. Come to QuoteMeAPrice.com and get Cash For Structured Settlement payment agreements today!

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