I am not sure there is a good reason. Any time one of my clients has had to sell a portion of their structured settlement they have been in a bad situation and in need of help. I still believe that if the structured settlement is designed well to take care of the claimant, it should only be sold as a last resort.
However, I do believe there are times when selling a structured settlement is the best option in a bad situation. I have helped my clients in several instances to make sure that the payment they receive for their structure are reasonable and the contract language is not restrictive. Those have included health reasons, saving a home from foreclosure and even to attend college. The bad reasons are because you saw an advertisement on TV, need a new toy or for spending money. I consider all of these bad reasons to sell a structured settlement.
I don’t agree with many people in the structured settlement industry and attorneys, who will not help a past client sell their structured settlement. These people are my clients and when circumstances change and they are in need of money, I feel it is incumbent on me to make sure they are not taken advantage of by a factoring company. I still feel better about this when the sale is not for a frivolous reason.