A caring, honest buyer of any structured settlement payment will only recommend that you sell them the number of payments that you absolutely have to in order to meet your immediate financial needs. This is because your settlement was originally set up to serve a purpose, to provide long term security – we don’t want to compromise the original settlement if it is not necessary. For this reason Strategic Capital is an ethical buyer of structured settlement payments who doesn’t push you to sell your payments; we encourage you to make the best decision for your unique financial situation and family needs.
Getting More Money in the Future from your Buyer of Structured Settlement Payment
Once you decide to sell a portion of your payments you do not need to worry that something else will come up and that you will wish that you had sold more of your payments – you can sell more in the future if you have a future need. It’s true, if you need more money in the future and you absolutely have to sell more of your payments, then you will be able to enter into a new contract to sell more of your payments. In fact, this will be beneficial because the closer it is to the payment date the more money you will get from a reputable buyer of structured settlement payment ! However, it is important to know that this is not something you can do without any thought, like withdrawing money from a savings account; there must be a real need. In fact, the judge who hears your transfer application will likely want to know what you did with the cash that you got from your previous sale and will want to know clearly why you need more money now.
Can a Buyer of Structured Settlement Payment give Me a Loan against My Payments?
Some people wonder if they can avoid selling their payments but instead take a loan out against those payments. While the federal statute, and most state statutes, do not address loans specifically, it is not something that is done very often. Strategic Capital does not offer loans against structured settlement payments, though we occasionally will give a client an advance on their payments if we anticipate court approval and the person has a very immediate need.
Some people think that taking a loan out will help them avoid paying taxes on selling their settlement.
While we cannot offer tax advice, we can say that usually structured settlement payments are not subject to income tax and neither are the lump sums that you get when you sell them; you should contact a tax professional if this is a concern for you. In short, getting a loan against your payments is likely not an option, but selling your payments in different amounts at different times is.
Selling the Payments that You Need to Sell
When you sell your settlement payments you should only sell as much of your structure as you need to in order to get the amount of money that you need. Beware of any buyer of structured settlement payment that pushes you to sell them more of your structured settlement payments than you need to. Our experts will work with you to help find ways for you to minimize the amount of future payments you need to sell, so that you keep as many of the payments as you can.