Can I Sell My Settlement? Yes – and there are Many Good Reasons to do so

A Guide to everything you should know about selling.

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Chapter 1

 

There are many good reasons to sell a structured settlement – What’s yours?

If you have had a major change in your life you can sell a structured settlement to get the money that you need to get your life back on track. The law gives you this right, around the country, if you have court approval. In this page we will answer a variety of questions including what type of annuity you can sell, who can sell, and more.

Selling Your Structured Settlement: What Type of Payments Can You Sell?

There are a variety of types of structured settlement payments (such as those stemming from lawsuits) and periodic payments (such as lottery payments or pensions) that you may be able to sell. People commonly sell personal injury settlements and workers compensation settlements, lawsuit settlements (anything from sexual harassment cases to wrongful dismissal), as well as lottery payments, sweepstakes prizes, casino winnings and more. Whether you can sell your structured settlement or periodic payment depends upon how the original terms were set up, so you may want to consult a financial advisor or a settlement purchasing company to ensure that your settlement qualifies for sale – there is a good chance that it does.

While federal law provides much protection nationwide, certain things are run by the state. For example, some states do not allow the sale of structured settlements workers compensation benefits that were given at the state level. But do not let that deter you from at least researching the potential of selling a settlement that you believe is from workers’ compensation – there are many nuances to these types of claims. For example, sometimes you may believe that your payments originate from workers’ compensation, but actually you were paid a lump sum and an annuity was purchased with it – in that case you can sell an annuity to get your lump sum. Or, if you have moved out of the original state that the workers’ compensation was awarded in selling your structured settlement may be possible. Again, a knowledgeable financial advisor or purchaser can help you understand the legality of your specific situation by looking over your original settlement paperwork.

Note that you probably cannot sell your structured settlements pensions – this is partially because while some people think a pension is the same as a structured settlement it isn’t, it’s just a type of periodic payment.

In any event, you cannot generally sell pension payments; read more about this in the “Myths” section of this text.

Who Can Sell Their Payments?

The law allows nearly any person anywhere in the United States to sell their periodic payments and structured settlements.

International law varies, so if you live outside the United States you will want to check the law in your area of the world.

In the United States, selling your structured settlement almost always requires getting approval from a state court. Adults of sound mind are most likely to be approved to sell their settlement payments. Most courts approve when they feel that a sale is in the best interests of the person selling. However, courts are skeptical about approving the sale of settlements that have been awarded to minor children, elderly persons or anyone unable to care for themselves. Yet, with good reason that is truly in the best interest of the person who owns the settlement such sales can happen.

What are some “Good Reasons” to Sell a Structured Settlement?

People sell their settlements for many reasons, and the decision is a personal one – it varies based on your own life situation. But some good reasons that people may want to sell include:

  • buying a house or trying to save a house from foreclosure
  • making a major home repair, such as a new roof
  • opening a new business or investing more in their current business
  • putting themselves or a loved one through college
  • buying a new car
  • paying medical bills or other debt

There is almost no end to the list of reasons that you might have to sell a structured settlement.

Explore your options!

Selling your structured settlement should be a last resort, a decision that you do not take lightly. Explore other options before you sell your structured settlement.

What if I already Sold some of My Payments in the Past?

There is no legal limit to the amount of payments that you can sell.

If your structure still has money remaining then you can access that money by selling the payments. This is why you should sell only how many payments you need to sell in order to meet your current need – you can always sell more later. Call Strategic Capital today and we can talk to you about how many payments you would need to sell to meet your immediate cash needs.