News and Tips on structured settlement transfers.

Posts Tagged: selling payments

6
Jul 11

Structured Settlement Sales: Considering our Economy

At some point of time, it may happen that you’re in need of urgent cash to pay off your debt obligations. During this strained financial time in the US, there are very few people who earn huge amount of money and are satisfied with what they are. If you’ve opted for debt settlement to make debt more manageable and not got much desirable financial results, you might get money by selling off your structured settlements. There are many companies that will offer you with a lump sum amount of cash in lieu of the structured settlements. The sale of the structured settlement payouts are regulated by the US law and more than 40 states in the US abide by this law thereby making the process of selling more authentic. If you’re unaware of the entire process of selling your structured settlements, here’s help for you. Read on to know some important questions those are mostly asked by people.

Is it really necessary to sell off your structured settlements?

While some people are content with the amount of money that they get monthly and annually, there are some others who need more money to pay off their surging medical bills, utility bills or unpaid credit card bills. If you’re someone who is confused about whether or not to sell off your structured settlements, you must consider taking a decision in accordance with your changing financial needs. The options that you have will also depend on the state laws where you live.

Is it legally right to sell off your structured settlement?

Unless there are no stipulations in the settlement agreement about you not being able to sell them off, it is always legal to carry on such transactions. You must make sure that you read all the details of any proposed agreement that is offered to you. Remember that you’re not obligated to repay the amount and therefore you may feel free to compare the rates that different structured settlement companies are offering you.

How much will you need to pay to sell off your structured settlements?

You need not worry about having to pay any money while selling off your structured settlements. This is for you to know that no structured settlement company will charge you any kind of advance fee before you begin the process of selling your structured settlements. If you agree to sell off your settlements, the processing fees and other legal entities will require being fully disclosed. If such fees are to be taken, they have to be deducted from the settlement amount that you get.

Is it necessary to pay taxes on the payments of the structured settlements?

As you know that taxes are a part of life, they will be deducted from any income that you and your household earn. Within a given tax year, if you receive any payment by selling off your structured settlement, you need to pay taxes on it. It is always wise to figure out how this added payment will affect your present financial situation.

Thus, if you’ve incurred debt and not got much positive results from debt settlement, you can sell your structured settlements in exchange of cash. You can utilize the proceeds in paying off your multiple financial obligations and lead a debt free life.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your structured settlement sales.

6
Jul 11

Selling Your Structured Settlement: Considering Future Value

Though structured settlements are primarily meant to be a method of payment of personal injury compensation, they can also provide a financial windfall for those in need of quick cash. They are intended to provide long-term stable income for claimant and cover medical and life costs. Instead of receiving one big lump sum, which can be more of a burden than a solution, claimant will receive regular monthly or annual payments. This provides greater financial security and ensures that claimant will have funds to provide for him self. So, why would you want to sell your structured settlement? Let’s read more to get a better idea of what we mean.

Even though they are an excellent way of settling personal injury cases, structured settlements have a few disadvantages. Before they are signed, they can be shaped in almost every form, whether it is annual payments, monthly, bi-monthly, or any combination of the above.

You can arrange for every tenth payment to be larger than regular ones, if you need to do so. In that sense, structured settlements are very flexible. However, once signed, they might as well be set in stone for that matter.

Not one letter can be changed. This aspect of structured settlements can be unfortunate; considering life does not always goes as we planned. You may find your self in a situation where you need substantial amount of cash, whether is that down payment for a new home or college tuition. Sometimes the only solution is to sell your structured settlement.

There are plenty of companies on the market that specialize in buying structured settlements. They all offer different terms so it is a good idea to ask around a bit before actually selling. The basis principle is the same with all of them. You sell your future income for the lump sum paid to you today. If you have decided to sell your settlement, one thing must be clear to you.

You will not get as much money as you would from your original settlement. The difference between what you get and the amount of settlement is a profit margin for the company. Be careful when weighing your options. Is the difference worth getting your money today instead of in 5 or 10 years? If the answer is yes, then you should sell your structured settlement.

One other thing to consider is inflation. A one hundred thousand dollars in 1980 is not a one hundred thousand dollars in 2010 or in 2030. Money loses its value over time and the longer you wait, the more value you will lose. All these factors are important when deciding to sell your structured settlement.

1
Jul 11

Structured Settlement Sales: Just the Facts Ma’am

The term “structured settlement” payments cover payments you receive, usually monthly, as compensation for damages caused to you in the form of injury, crimes, or perhaps hazards at work. Often these payments are considered by those receiving them to be just a replacement for regular income. But what about situations were you find yourself in the difficult position of needing financial help yet have little or no ready access to cash? What about unforeseen emergencies? What about finding you’re behind on your mortgage? Then, your structured settlement payments can become so much more than just replacement income.

Whether you are in the midst of seriously hard times, or just want to upgrade your car, pay off your credit card bills, or send your child to college, your structured settlement could offer the relief you need. These settlements are, in essence, a deferred method of financial payment and can be very beneficial in terms of a solid and predictable monthly income. If the day has come, however, when the amount stipulated in your monthly payout is just not enough to cover your financial needs, it could be time to consider selling your structured settlement. If you are at this crossroads, there are certain crucial issues you need to consider before selling your structured settlement.

Although it was not always so, the sale of your structured settlement now requires a court in your state to review the agreement you eventually reach with a buyer, and prepare an order approving the sale; these rules are intended to protect you from being deceived or entering into a deal which is not in your best financial interest. Once you have decided to sell your structured settlement, you must do your research. Although there are many reputable companies out there, there are also some that are less than reliable. It is a good idea to call the attorney general or consumer affairs in your state to check out any prior complaints against the company you are considering. Take the time to thoroughly check out companies who purchase structured settlements, and remember that the highest bidder will not always be the best. Some companies will make a high offer in order to get you to sign a contract—later the “hidden” costs and fees come to light, leaving you with much less than you anticipated. The specific terms and conditions in purchasing structured settlement can vary widely from company to company therefore you should read the fine print thoroughly and ask questions if anything seems doubtful.

Once you have obtained multiple quotes, and have narrowed down your choices to the one you believe will can best help you, it’s time to send in copies of your structured settlement policy to the purchasing company. Once received and approved, the company will send you a disclosure document to sign which should thoroughly explain the conditions of your transaction, including offer, terms, and any other pertinent information. Once you sign the settlement agreement, the court order process will begin; be aware this process can take up to 90 days, depending on your state of residence and your insurance company. In most cases, once approved, you can receive your money fairly quickly, sometimes as soon as ten days to two weeks. Although you may need cash desperately at this moment, keep in mind that selling your structured settlement is a major financial decision that has potential consequences which will last for a very long time. Be smart, and be don’t rush into anything when negotiating a sale–the results will reflect that care.

1
Jul 11

Structured Settlement Sales: What Do You Mean, I Can’t Sell?!

So, you’ve found yourself in a position where due to the cost of a medical procedure, the need to take care of credit card debt, a possible mortgage foreclosure, or any of a dozen other reasons; where you have finally decided to look into selling your structured settlement payments. As you are browsing through your documents regarding your structured settlement while you begin to prepare for the sale you stumble on to some disturbing language in your settlement- an example of the language that may be contained inside your annuity policy or settlement agreement would be something like this-

“none of the periodic payments may be accelerated, deferred, increased or decreased and may not be anticipated, sold, assigned or encumbered.”

What does that mean, anyway? First of all, that would be called “anti-assignment or anti-sale language”, and secondly it is often put in there to let you know the annuity payments cannot be sold or transferred. But, wait. It’s your money. What happens if the Settlement Agreement has anti-sale or anti-assignment language? Does that mean you can sell your money? That you can’t sell your structured settlement payments? It sure sounds like it, but no- you can still sell, it’s just become a little more difficult.

What Happens If Your Annuity Policy Includes Anti-Assignment Language?

Many annuity policies and settlement agreements usually include anti-assignment or anti-sale language. Even though this language is included within your settlement documents, you are still able to sell your future structured settlement payments!

Selling the rights to your structured settlement payments requires you to receive a court order in which a judge will review and approve the sale of the annuity payments.
Most states have a Structured Settlement Protection Act which states that a judge must approve the transfer of such payments. Since you’ll be required to go via the court system anyway to make your sale, you can explain to the judge about your situation in regards to the language of your settlement. Remember, a judge has the power to approve the sale even if anti-assignment language exists in the Settlement Agreement or Annuity Policy since his ruling will supersede any and all agreements made on the terms of your structured settlement payments. It is important to remember that a judge will only approve the sale of your payment rights if the transaction is in your best interest.

1
Jul 11

Reasons to Sell Your Structured Settlement Today

Sometimes, annual payments from a structured settlement or annuity just aren’t enough. When an emergency situation arises or a new financial opportunity appears, you may need more funds each month. Many people find that selling a structured settlement-rather than waiting for the money to arrive at some future date-can be extremely helpful for a number of reasons.

* Pay Off a Debt – If the small, monthly payments from your settlement aren’t enough to cover a large debt that has accrued over time, you can get a large sum of money for your annuity and completely pay off the debt. A lump sum can help you take control of your financial future.

* Major Purchases (Homes/Vehicles) – Whether you are looking to purchase your first home, or have a house in desperate need of repair, selling your structured settlement for a lump sum can provide the money you need for a down payment on your housing situation. In addition, it can provide you with the opportunity to purchase a reliable vehicle for your everyday transportation needs.

* Higher Education – As the cost of education continues to rise-and regular annuity payments cover only the basic monthly expenses-they may not provide enough to cover educational expenses for you or your children. Using a lump sum to pay for your education is a solid investment for your future.

* Sudden Illness – Medical expenses are tough, especially if you don’t have good health insurance. If the unforeseeable happens and you find yourself in need of emergency or special treatment, a lump sum can take care of you when smaller settlement payments don’t cover all of your expenses.

* Start a Business – The saying that you have to spend money to make money is very true. Many small businesses fail because they don’t have the capitol to get started. A structured settlement may pay your monthly expenses, but you may need a larger amount of cash to fund a successful business.

* Investment Opportunities – Annuities are an investment for your future. A structured settlement ensures that you will receive those annual payments to cover your daily expenses. However, for those who understand finances and know how to make the most of an investment opportunity, it may be more beneficial to get a full payment and handle the investments on your own.

* Helping Others – If you are receiving a structured settlement, there is a good chance that it is because of an arrangement with a financial or insurance company after a personal injury or other circumstance. If you or your loved ones are in really bad shape, you can help your family by receiving a large lump sum.

Structured settlements can be a great help in some situations, but there are times when a larger lump sum of money can make a huge difference. Evaluate your current circumstances and see if selling your future payments for a lump sum of money is right for you.

29
Jun 11

Selling Your Structured Settlement: Is Now the Best Time?

With our current economic recession lasting longer than most annalists had initially expected it too, it is becoming difficult to find anyone who isn’t concerned about their money. In these difficult times, those who are receiving monthly payments on a structured settlement are often wondering about whether they should opt to cash out now and receive a larger lump sum or if they should try to wait out this slowly recovering economy. Whether or not selling your structured settlement payments is an appropriate decision depends largely on each person’s own personal circumstances, situation, and willingness to live at a, sometimes greatly, reduced standard of living compared to what they may have been accustomed to before.

Regardless of the current economy, you must ask yourself some basic questions prior to considering the sale of your structured settlement payments. For example, do you sincerely need the lump sum now? Have you or your spouse recently lost a job and is this why you feel the need to sell? If so, can you wait things out until you or your spouse is employed again without selling your payments? Are you encountering debt problems with respect to mortgage payments, vehicle payments, utility or credit card payments that may affect your credit rating if you are unable to become current? In the event that your financial situation falls into one of these categories, choosing to cash out your structured settlement now, rather than receiving monthly payments that are inadequate under the circumstances, may be the most logical choice for you in these tough economic times. It may also help save your home from foreclosure and your car from repossession. In addition, it will allow you to avoid any of the consequences of having a default judgment filed against you for unpaid credit card bills, such as bank account freezes and wage garnishments. These types of black marks can stay on your credit rating far longer than the most pessimistic of economy annalists would predict our mild recession to last.

If, on the other hand, your financial situation is more stable, you’re current on your bills and have steady employment, opting to cash out at a rate anything even a little less than what your full structured settlement is truly worth, simply to have the extra money on hand, could be possible but really doesn‘t make much financial sense. Even though rates are at there lowest in the history of the industry, cashing out a structured settlement means that you are cashing out each payment for a discount of their actual future value. If you are not in a position to pay your bills, the percentage may seem like a small price to pay to help you catch up and get your life back in order. Those in more stable financial situations, however, might not see as much benefit to losing even a portion of their full settlement figure when they do not truly need a lump sum immediately.

In addition, make sure you shop your payments to multiple companies or use a structured settlement sales broker to handle your shopping for you. For the small cost of using a broker you can do away with the time consuming hassle of shopping around yourself, while knowing at the same time that it’s in your broker’s best interest to get you the best deal if he has a percentage commission riding on the outcome.

29
Jun 11

9 Common and Uncommon Reasons to Sell Your Structured Settlement

Your reason for want to sell your structured settlement payments does not need to be a desperate need for a large amount of money, it dos not need to be for some exotic new medical treatment, it does not need to be to save your home or even to pay down large credit debt. All your reason “needs” to be is one thing- approved by the court. Now, I am most definitely not advocating that you sell your structured settlement payments to buy that dream Ferrari you’ve always wanted and then be left with not even enough money to pay to insure the thing. But I am trying to illustrate to you that your reason for selling just needs to be found to be in your best interest by the court. Only you can assess your particular needs, however here are my 9 favorite reasons to sell your payments.

1. The desire to acquire a business leads many people to sell their structured settlement; they see the acquisition of their own business as an investment in their future, and believe the capital to get them started, in the form of selling their structured settlement, will have bigger payoffs later on or will lead to positive cash flow over a longer period than if they just stayed with the settlement payments.

2. For those who went in with a group to purchase a lottery ticket, selling the annuity can be particularly appealing. Often in these situations, one or more members of the group will be fine with long term payments, while others my want or need their cash now in one lump sum. Unfortunately, Lotteries pay our based on the ticket; not by how many people “went in on it”. Meaning, the only way to satisfy everyone would be to sell the payments and divide the lump sum.

3. Paying off existing debt is the number one most common reason people choose to sell their structured settlement payment. If you take a look at your existing debts, you could be shocked to realize how much interest you are paying on credit cards, your home or car, turning the decision to sell your structured settlement into a financially responsible choice. Not to mention, rates on structured settlement sales transactions are much lower than normal credit card interest rates at this time.

4. Returning to college is in the top three reasons people cash in a structured settlement. This is a wonderful way for you to use money awarded to you from an accident to help train you to do new job; leading to long term cash flow in the future.

5. Emergencies can happen to anyone, anytime, whether they are medical emergencies, the loss of a job, or necessary home repairs which can cost a small fortune. Selling a structured settlement can often be a cheaper choice than taking out a loan and then paying interest to pay for these emergencies.

6. Many people cash in their structured settlement in order to purchase real estate. Taking the lump sum received from the sale of the structured settlement and using it to purchase rental properties could end up bringing in a rental payment which exceeds the previously received monthly disbursements—a smart choice!

7. Employment changes can be a compelling reason to sell your structured settlement, as losing a job can be traumatic, both financially and emotionally.

8. Buying a home, or a vacation home are common reasons to sell a structured settlement, as, again, such as purchase can add real long-term value to your financial portfolio.

9. Wealth transfer planning can be a motivator to sell a structured settlement; such a plan must be started during your lifetime, and certainly the sooner the better.

25
Jun 11

Selling Your Structured Settlement: Don’t Go Broke, Use a Broker- part 2

Structured settlements are payments that are given out by insurance companies to help you cover ongoing costs that you may experience from the result of an accident. These payments are usually annual or bi-annual and are meant to cover living and medical costs. People who receive these structured payments are usually interested in selling these structured payments for a lump sum. By selling your structured payment, you won’t receive the full value of the settlement, however, you will receive a considerable portion of the original settlement.

Selling your structured settlement loans are very advantageous if you are able to invest it and earn a higher rate of return. Most people who are looking to sell their settlements will often use the money to pay off any bad debt they may have or use the money to take out a mortgage loan. No matter what you intend to do with the money, many people feel that they will get more value from selling their structured settlement than keeping it.

If you are looking to sell your settlement, you should know that there are different ways to do it. You can either sell your whole settlement payment or sell partial of the settlement. The best way to go about selling your structured settlement is finding a broker who specializes in selling structured settlements. Because the structured settlement payments are guaranteed income, there are many people who are looking to invest in these settlements to give them guaranteed income. These investors are often looking for a safe return on their investment.

Depending on the company who is giving you the structured company, you may not be able to sell it. Some companies don’t actually allow the sale of their structured settlements. This means that you should find out if you can sell the settlement before you try and sell the settlement. You qualified broker should be able to tell you if you are able to sell the settlement or not.

Structured settlements sales are very common among different people. Most people just look at these sales as a way to get access to instant money. Structured settlement loans are often considered very valuable investments from different people. If you are in a tight financial position, then you should definitely consider selling your settlement. For many people, these benefits often outweigh the negatives of selling. Start your search by finding a qualified lender online who specializes in structured settlements.

25
Jun 11

Selling Your Structured Settlement: Don’t Go Broke, Use a Broker- part 1

It’s not uncommon for the recipients of a structured settlement to want to sell the payments in order to acquire a lump sum. Obviously there are many reasons why a recipient of such payments would choose to follow this route. For example, they may want to purchase a property, or perhaps they would like to invest a lump sum of money in one or other business venture. Basically, receiving a one off lump sum payment has a far higher potential to be life changing than what small monthly payments have.

Just as there are people who wish to sell structured settlements, so to are there those who view such structured settlement investments as a viable option for increasing their financial portfolio. Of course, if you choose to sell your payments then you need to keep in mind that investors won’t pay you as much as what you would otherwise have received, because just like you want to benefit from one lump sum, they want to profit as well.

In many cases the reasons for a person wanting to sell their payments can be extremely pressing, such as when they may have huge amounts of debt which they need to settle as soon as possible. However, because structured settlement investments can be so lucrative for investors, there is generally no shortage of potential buyers, and of course this is something which sellers can to a certain extent use to their own advantage. Before actually selling the payments, a seller should ideally consult with a reputable financial adviser. The advisor they choose should however not be connected to the potential buyer in any way. In other words, the financial adviser should have the seller’s best interests at heart, and they should ensure that the seller fully understands how much money they will lose should they proceed with the sale. A responsible adviser will also question a seller’s motive for wanting to sell their payments. In other words, a good adviser will make absolutely certain that the seller is aware of all the different pros and cons.

Something else to bear in mind is that structured settlement investments involve more than just a buyer and a seller, in that court approval is usually the mandatory. During the court hearing the presiding judge will also try to determine whether or not the seller has a solid understanding regarding the sale of their payments and any consequent ramifications. During this process the court will usually want to see evidence relating to the seller’s financial circumstances and financial needs. The seller will also be made aware of the fact that it is possible for them to sell only a portion of their payments rather than the entire structured settlement. This process also helps to ensure that the buyer or buyers are trustworthy and reputable and that they have no hidden agenda.

Even though there are several routes a person can take when they want to sell their structured settlement, it is always best to work through a reputable broker who specializes in structured settlement investments, in that such brokers are extremely knowledgeable with regards to the laws governing such contracts. Remember, structured settlement investments should not only benefit the buyer, but they should also benefit the seller, hence the reason for a fair agreement which takes the interests of both parties into consideration.

25
Jun 11

Selling Your Structured Settlement: Plan First, Sell Second

Structured settlement payments come about from a number of situations. Many are from lawsuits over a personal injury or from financial harm. Often the structured settlement will be created through the purchase of an annuity, which will guarantee the future payments. Most structured settlement payments are made monthly, although any payment period is possible.

If you are receiving or about to receive structured settlement payments over a period of time, you may be wondering if selling your payments for an immediate lump sum of cash is a good idea. Unfortunately, there is no one answer to this question as every person’s situation is different. However, there are a few things to consider when deciding on whether to sell your settlement payments or not. Here are 3 important ones.

1. If you are receiving structured settlement payments as a result of an injury that made you unable to work but that are insufficient to cover your basic living expenses, a lump sum may be your only real choice. However, you must realize that the lump sum only covers you for a period of time, after which you will be without income. If you decide to get a lump sum, you need to a) Create a strict budget each month and follow it to be sure your lump sum payment for the structured settlement lasts as long as possible and b) Allocate some of the lump sum payment for training in a profession that you can physically do or to start a home based business so when your lump sum runs out, you have sufficient income to at least cover your monthly financial needs.

2. If you don’t have to have all your structured settlement in a lump sum but are still considering selling the payments, you need to determine for yourself whether you feel the future value of your payments is worth as much as a lump sum now. You will need to get a quote for selling the payments in order to compare the two options. Your decision on this comes down to what you firmly believe inflation will be over the life of your income stream. Be careful on solely using government reported inflation numbers as the core inflation reported excludes “volatile” items like food and energy, which are very real for every one who eats, fills up the car or heats their home.

3. If you are thinking of using the lump sum to make a lucrative investment, you will need to analyze the expected (conservative) return on your investment versus the known income from your structured settlement. You may want to consult a financial adviser to help you make these calculations and comparisons.

Selling structured settlement payments can be an emotional event. Try not to let it be. Use logic and sound analysis to help you make this important financial decision. You’ll be glad you did.

Let Companies Compete to Buy your Structured Settlement!

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News and Tips on structured settlement transfers.

Posts Tagged: selling payments

Is it really necessary to sell off your structured settlements?

Is it legally right to sell off your structured settlement?

How much will you need to pay to sell off your structured settlements?

Is it necessary to pay taxes on the payments of the structured settlements?

Let Companies Compete to Buy your Structured Settlement!

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