News and Tips on structured settlement transfers.

Marketplace

30
Apr 11

Why You Need Objective Advice Before Selling Your Structured Settlement

Structured settlement factoring companies – the buyers who take your payment stream in exchange for a lump sum – are in business to make money. They are not in existence to help you, and they are not on your side. This doesn’t mean they are evil; it simply means they are in business. As a result, it’s important that you look out for your best interests before you agree to sell your structured settlement.

Get Advice

First, if you can, tell a trusted friend or a financial advisor that you are considering selling your structured settlement. Another person may be able to give you objective suggestions for other ways that you can get the cash you need, or meet your financial obligations, without selling. A financial advisor may also be able to help you get alternative financing, or work with you to restructure your debts to something more manageable. Even though financial advisors charge a fee, it may be well worth it, considering how much you will give up if you sell your structured settlement.

Watch Out For Pressure Tactics

While selling a structured settlement is new for you, it is just another day for the structured settlement buyer. They know the hopes and fears of structured settlement holders, and may try to play on your emotions to get you to sign on for a deal in a hurry, or agree to a deal that is not the best for you. Avoid this kind of pressure. If possible, get a friend to be with you whenever you are dealing with the structured settlement companies to give you a second opinion, and get you to hold off before signing in a hurry. If you don’t have anyone who can serve in this role, promise to wait at least 24 hours before making a decision – write it down and post it prominently if you need to. Tell the company that you have a financial advisor who must look over every aspect of the deal, even if you don’t really have such a person. A company may try to convince you that the deal will be off the table if you wait; this is even a greater red flag to back away.

Get Legal Advice

Most states require structured settlement holders to get legal advice before selling their structured settlements. Choose an attorney who is independent (avoid any attorney who is “preferred” or “recommended” by the structured settlement buyer) and who has experience with structured settlement factoring transactions. Listen carefully to his or her advice. If s/he tells you that selling is a bad idea, reconsider your decision to sell.

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 payments.

23
Apr 11

Before You Sell Your Structured Settlement, Read This!

If you’re desperate for cash, the ads promising quick cash for your structured settlement can be really tempting. But keep a few things in mind before you decide to go ahead.

Think of What You’re Giving Up

All structured settlement factoring companies use a discount rate to figure up what they will pay you for your settlement. That means that the lump sum you will get in exchange for the payment stream you’re selling will be less than the total amount of the payments – sometimes a lot less. The discount rate ensures that the structured settlement buyer’s costs will be covered, and also that he will make a profit on the purchase of your settlement.

What Will You Do When It’s Gone?

Once you sell your structured settlement, it’s gone. Structured settlements are intended to provide for your living and medical expenses, so without it, how will you cover your needs? If you have no other income and are not able to work, seriously reconsider how you will survive without your structured settlement payments.

Do You Really Need To Sell?

It’s easy to become convinced that you are desperate for cash when a large expense pops up. But really consider what those expenses are. Is there some other way to get what you need, or pay the bills? If it’s a debt you wish to pay, try restructuring it or working out a payment plan. If it’s something you think you need to buy, reconsider whether you really need that new car or vacation. Even if you really need money, if selling your structured settlement won’t take care of the need once and for all (for example, if it’s only enough to pay some of your debts), don’t bother – you’ll be no better off and your structured settlement will be gone.

Not As Easy As You Think

Beware structured settlement buyers who make the process sound fast and easy. Even if everything goes smoothly, you won’t complete your sell in less than 30-45 days. If you need cash faster than that, you are out of luck – no matter what the settlement buyer promises you.

The most important thing to remember is that a structured settlement is intended to protect and provide for you. Structured settlement buyers are in business to make a profit, not to help you. Before you sell, really give some hard thought to what your life will be like without the settlement payments.

22
Apr 11

Cashing Out Your Structured Settlement – The Essentials

While the ads featuring everyday joes and janes singing about getting cash now seem whimsical and appealing, selling your structured settlement is a serious decision, nor is it as fast and easy as some companies make it out to be.

Selling your structured settlement is, in legal terms, called a structured settlement factoring transaction. By factoring, it means that you are giving up a future stream of payments for a lump sum today which will be less – possibly significantly less – than the total amount of those payments.

Every state has laws that govern structured settlement factoring transactions. These laws are meant to protect sellers from unscrupulous buyers. As a result, there is a controlled process that must be followed for every structured settlement sale.

Before you choose a buyer for your structured settlement, be sure that you’ve shopped around (www.quotemeaprice.com makes this easy by allowing you to post the details of your settlement and get competing bids), and be sure that you’ve checked out the prospective buyer through the Better Business Bureau. If the buyer you’ve selected has lots of unresolved complaints, you might want to reconsider selling.

Most states require structured settlement sellers to seek out the advice of a lawyer to see if selling your settlement is right for you. Make sure to choose a lawyer who has seen structured settlement sales before. Make sure the lawyer is independent, too; don’t use a lawyer who is recommended or “preferred” by your structured settlement buyer, because s/he may not have your best interests at heart.

Depending on the state in which you live, you may also have to seek out a financial advisor for his opinion on the sale. Even if it isn’t required, you might want to talk to one anyway – s/he can tell you what to expect from the sale of your structured settlement, and may be able to point out other options to get the cash you need, rather than selling your settlement. As with the lawyer, make sure your financial advisor is independent of the buyer of your settlement.

If you decide to go ahead and cash out your structured settlement, it will have to be court-approved. You may even have to appear in front of the judge yourself. The judge will review the details of the sale, as well as the reason you’re cashing out, and will pay particular attention to the discount rate. If the judge believes the sale is not in your best interest, s/he can deny it.

The final step is the cooling-off period. This is usually a few days after the sale is approved by a court where you can decided to back out of the deal altogether. Use this time to consider seriously if selling your structured settlement is truly your best option.

12
Apr 11

What Can Derail Your Structured Settlement Sale

Plenty of things can go wrong when you’ve decided to sell your structured settlement, and may even cause the sale to be cancelled altogether.

Change to the Deal. Once you’ve chosen a buyer (hopefully you’ve shopped around on a site like www.quotemeaprice.com) and decided on a lump sum you will receive for the sale of your structured settlement, the buyer may try to change the deal. This is a common complaint against structured settlement buyers, and should be a red flag to you to walk away. Same goes if the buyer tries to introduce new fees that weren’t part of the deal to begin with.

Advice. Your state’s laws will likely require you to get legal and possibly also financial advice from a professional. This is meant to be an objective opinion as to whether the sale of your settlement is in your best interests. If the lawyer or financial advisor counsels you against selling your structured settlement, they can’t stop you from proceeding, but you should seriously consider their advice. They may be able to help you resolve whatever financial problems have caused you to consider selling, or help you come up with other options for raising money.

Foot-Dragging. Structured settlement buyers are frequently accused of intentionally slowing down the sales process. They may do this if they are trying to time their investments, if they’re trying to secure the cash that they will use to pay you, or if they are considering other deals.

Naysaying Judge. One of the final steps in the structured settlement factoring process involves putting your proposed sale in front of a judge for his or her approval. The judge may review the sale and conclude it is not in your best interest to sell, especially if the buyer is charging a discount rate that the judge believes to be excessive.

Cool It Down. Even after the entire process is completed, you will still have a “cooling off” period during which you can choose to nix the entire deal. This is your last chance to think hard about whether selling is right for you.

No Payment. As terrible as it may seem, there have been instances in the past where a structured settlement factoring transaction was completed, but the buyer was short on funds and did not pay the seller. If this happens, a reputable company should cancel the agreement, but there have been companies that have refused to cancel the agreement. The end result is, the seller gave up his settlement and got nothing in return. Your best defense against this is to do due diligence – thoroughly check out any prospective buyers to see if they’ve done this in the past.

9
Apr 11

Why Selling a Structured Settlement Takes Longer than You Think

The ads all promise “cash now!” but the truth is, the sale of your structured settlement is going to take quite a bit longer than that.

The process of selling your structured settlement will take, on average, 45-60 days to complete, depending on which state you live in.

Why the delay? After all, isn’t it your money? Aren’t you giving permission to sell it?

The answer is, it’s the law. All states have statutes governing structured settlement factoring transactions. As a result, there is a strict process that must be followed, and specific steps, often with specific waiting periods.

After you choose a buyer for your structured settlement (and hopefully you’ve used a site like www.quotemeaprice.com to shop around for the best deal), there will be paperwork for you to review and sign, and send back to the seller. This is one reason for the delay. Your state may also require you to get legal and possibly financial advice regarding the transaction, so you will need even more time to find these professionals and sit down with them to review your sale. State processes require this so that you will get independent advice as to whether the transaction is suitable for you, and in your best interests. Even if your state doesn’t require you to get this advice, you should do it anyway.

Once all the contracts and agreements have been signed, and you’ve gotten professional advice, your structured settlement sale will need to be approved by a judge. Depending on your state’s law, you may even have to appear in court. So, this takes more time to get your court date on a docket.

Once all this is done, most states grant a “cooling off” period during which you can change your mind and cancel the entire deal if you want to.

While this may seem frustrating, especially if you need cash in a hurry, the entire process is designed to protect you. Structured settlements are intended to provide for your needs over a period of time, so selling it should not be a light decision. State processes are also designed to ensure that you get objective opinions (lawyer, financial advisor, and judge) as to whether selling your settlement is a good idea, and giving you the opportunity to think it through one last time. So, no matter what a buyer promises, don’t expect to get cash at light speed.

27
Mar 11

Structured Settlements – Truth Versus Fiction

The TV ads are enticing. They tell you to sell your structured settlement and get cash now! But how many of these promises are actually true?

Get Cash Now! Beware any structured settlement buyer that promises to complete the sale of your settlement in less than 45 days. All structured settlement sales are governed by state law with specific processes that must be followed. Even the fastest states will take 30-45 days to turn around your sale. If you need money sooner than that, sorry – you’re out of luck.

Get the Biggest Payment! The only way to know if a structured settlement buyer is giving you the best deal on your sale is to compare prices. A site like www.quotemeaprice.com allows you to post the details of your settlement and get quotes from competing companies, so that you know who’s offering the most money. But no matter who you choose, understand that the amount you receive will be only a fraction of the total amount of your entire settlement. Structured settlement buying companies make money by buying a settlement for pennies on the dollar.

No Hidden Fees! No matter what a structured settlement buyer promises you, be sure to read every document and agreement thoroughly for any additional costs. Your state will probably require you to get the advice of an attorney, too – make sure your lawyer is independent (not “recommended” or “preferred” by the structured settlement buyer) and has dealt with structured settlement factoring transactions before. Buyers have been accused of charging fees even though state law specifically prohibits them.

We’re the Industry Leader! There are some big players in the structured settlement market with well-known names. But no matter which buyer you choose, check them out through the Better Business Bureau to make sure they are legitimate and to see what types of complaints, if any, have been filed against them.

It’s Your Money! Yes, it is your money, but once you sell your structured settlement, it’s not your money anymore. Understand that these companies are in business to make a profit, and that they are not looking out for your best interests – that’s your job. Once you sell your settlement, how will you meet your living expenses? How will you support yourself? Do you truly need to sell? If you do sell, will your money needs be resolved, or will the same problems keep coming back? Remember that you are giving up a fair amount of your settlement if you sell, so you should give this decision serious thought.

24
Mar 11

Understanding the Structured Settlement Sales Process

The ads of singing people who “need money now” seem so joyful, you want to run right out and sell that structured settlement. After all, why wait for your money over a period of months and years? And the people in those ads are so happy, the process must be easy and the right thing to do.

In fact, the sale of structured settlements is a controlled process that is governed by state law.

Structured settlements were first used in Canada some 30 years ago, but quickly grew in popularity in the United States. They are very popular for settling personal injury lawsuits, because they allow the defendant to purchase an annuity for less than the full amount of the lawsuit settlement. The amount placed in the annuity earns interest and is able to pay the plaintiff over time.

The sale of a structured settlement is called a structured settlement factoring transaction. In 2002, because the IRS and Congress perceived abuses by the factoring industry and a loss of potential tax revenue, Internal Revenue Code Section 5891 was enacted to provide a severe excise penalty for any structured settlement factoring transaction that was not pursuant to a state court proceeding.

As a result of IRC 5891, every state now has laws governing the structured settlement sales process. If you’re selling your structured settlement, it’s important that you find your state’s law regarding the process and become familiar with it. You don’t have to be a lawyer, but get an understanding of the basics. Depending on the state where you live, the structured settlement buyer may be required to pay for you to get advice from a lawyer or financial advisor, for example.

An Internet search can lead you to the appropriate statute for your state, which you can download and read for yourself. Your state’s structured settlement process likely requires you to hire an attorney to get his advice, also. Be sure to hire an attorney of your own choosing who has experience in structured settlement sales. Most importantly, don’t let the buyer of your settlement “recommend” or send you to a “preferred” attorney – s/he won’t be independent, and may not look out for your needs.

Though the process of selling your settlement may seem frustrating, it is actually designed to protect you. A structured settlement is intended to provide for your needs over a long period of time, so selling that settlement is not a decision to enter lightly.

22
Mar 11

Structured Settlement Sales – Is Bigger Better?

If you’ve got a structured settlement and are considering selling it, you have hopefully used a site like www.quotemeaprice.com to get bids for the portions of your structured settlement that you are considering to sell.

Still, once you get those bids, how do you know which to choose? Do you take a slightly lower offer from one of the big players in the structured settlement market, or do you take a chance selling your settlement to a company that is not as well-known?

It all boils down to “due diligence.” Essentially, that means you have to do your homework to make sure a company bidding to buy your structured settlement is reputable, and whether you trust that company enough to give them your business.

Once you get a short list of companies bidding on your settlement, an easy way to begin checking them out is with a simple Internet search. Are there lots of articles about them? Lots of complaints? If there is absolutely no information at all, it could mean that the buyer is a brand new company; not necessarily a bad thing, but you have no history to go on. This is all starting information, and you need to go further.

Your next stop should be the Better Business Bureau. There, you can review complaints that have been made against prospective structured settlement buyers. Most companies will have some complaints against them, so the content of the complaints should be your focus here. Do the companies change the deal after the fact? Did they fail to pay up on their settlements? Did they sneak in hidden fees? This will tell you what red flags to watch for when you begin the sales process.

Another added check might be the state attorney, or some other regulatory that handles consumer complaints, to see if your prospective buyers have encountered problems in your state.

Even once you’ve selected a vendor, be it a major player or a start-up, you can’t drop your guard. Review carefully every contract and document given to you as part of your structured settlement sale. Talk to an independent attorney who’s had experience with structured settlement sales, and talking to a financial advisor is a good idea, too. Make sure this is a good deal for you, or at least the best deal you can get. And don’t forget – you have the “cooling off” period right after the deal is done where you can pull the plug on the whole thing, if you want to.

19
Mar 11

Structured Settlement – Your Best Bet

You were injured and filed a lawsuit, or you won a lottery, or some other settlement, yet your benefits are being paid to you as a structured settlement. Why do you have to wait for your money? Why can’t you get it now?

Structured settlements actually got their start in Canada. They’ve become a favorite in personal injury lawsuits for a number of reasons. First, the plaintiff can pay a settlement to an insurance company that is less than the actual total lump sum settlement stipulated in court. How? Because the plaintiff puts a set amount of money aside with an insurance company, who then invests that money into a conservative investment whose rate of return generates the stream of payments that constitute your annuity. The time needed to grow that lump sum into your annuity is one reason why you have to “wait” for your money.

Another reason is your benefit. Structured settlements are intended to cover your living expenses for a period of months or years. Most people don’t have the discipline or investment skill to manage such a large amount of money on their own. So, the annuity lets someone else (the insurance company) manage the money, and the annuitant (that’s you) gets it – and spends it – only as needed. No matter what a “financial advisor” may tell you, you won’t beat the interest earnings on your investing without some special skill…or divine intervention.

Tax-free treatment is another big reason that structured settlements are so popular. As long as your damages come from your actual injuries, and not from compensatory or punitive damages, your annuity payments are tax-free. So, take that into consideration if you believe that your investment can overcome the return on your structured settlement. Anything you earn must beat both the insurance company and your tax rate.

If you truly don’t need this money, great – why not play with investing it elsewhere? But if you got it as a result of a personal injury settlement, and can’t replace that income elsewhere, selling should be your last resort.

Should you decide to sell, a site like www.quotemeaprice.com allows you to seek out bets from interested buyers quickly and easily. Buyers will tell you the amount they are willing to pay for all or part of your structured settlement. This allows you to get the best deal. True, you won’t get anything close to the amount you would have received over time, but if you are desperate for cash, you will be able to get more than if you called only one buyer.

7
Mar 11

Who Would Buy a Structured Settlement?

Sure, you know why you want to sell your structured settlement – an emergency need for cash fast that can’t be settled any other way. You may not like the idea of having to wait for your money, and at times like this, it can be pretty inconvenient. So, why would a company want to buy your settlement from you?

Stability. A typical structured settlement is backed up by an annuity, usually administered by an insurance company. If your settlement was related to a personal injury lawsuit, the defendant placed a lump sum with the insurance company, who then put the funds into an annuity contract where they money would be invested in conservative holdings so as to generate a stable stream of interest. That interest income, plus the initial sum, pays out to you over months or years. Barring financial disaster for the insurance company and your annuity contract being unprotected, the company who buys your settlement is virtually guaranteed that the stream of payments he is buying will come through as planned.

Rate of Return. If you’ve been shopping your structured settlement on www.quotemeaprice.com already, then you’ve found that buyers are offering you lump sums that are less than the total amount of your payment. This difference is being caused by the discount rate. It is essentially a reverse interest t percentage that the buyer uses to scale back the payment stream to an amount he is willing to pay you. The discount rate is intended to cover the buyer’s costs, such as legal fees and administrative overhead, but it also contains his rate of return – his built-in profit. After all, structured settlement buyers are not in business to provide funds to you, they are looking to make money. If this seems unfair to you, remember that you are in need of quick cash and the buyer is essentially providing a service. Also, just as if you were borrowing money from a bank that would charge you interest, there is a charge for getting your money ahead of schedule.

Here’s the good news for you: a site like www.quotemeaprice.com allows you to get several offers from competing buyers, and lets you choose the one that best suits your needs. Of course, you don’t have to accept any offer, and you don’t have to sell your settlement if you don’t want to. That’s why you should always weigh the decision to sell heavily, and get objective advice.

Let Companies Compete to Buy your Structured Settlement!

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