How to Cash Out a Structured Settlement
There are several steps that must be completed in order to cash out a structured settlement. Some of these will be required by law, while others are just practical advice to ensure you are getting the most fair and reasonable deal possible.
Step One- Gather all documents that relate to your structured settlement, including all documents related to the trial, lottery winnings, annuity, and/or bankruptcy. This information will be used to qualify your right to sell the settlement, as well as calculate the lump sum value of your remaining payments.
Step Two- Research all qualified buyers, and request a quote for their services. Check the BBB (Better Business Bureau) and reviews on the internet to get a better understanding of the qualifications of each buyer before filling out an online form.
Step Three- Review all offers, taking special consideration to their fees, lump sum amount, and closing date guarantee. Once you are comfortable with a deal, you may be required to seek the advice of a CPA, accountant, and/or attorney before signing a contract.
Step Four- Most states require a "cooling off" period. This is where the seller has the right to cancel the agreement. The buyer will be required to wait for several days before proceeding with the next steps of the transaction, which is providing proof from your insurance company that you have the right to sell your settlement.
Step Five- An attorney will be hired to submit all documents to your states court system, and a hearing date will be set.
Step Six- On the date of your hearing, you will be required to show up and answer any questions the judge has about the sale of your structured settlement. If the judge deems the sale to be fair and reasonable, they will grant permission, and the order will be signed.
Step Seven- The court order will be sent to the insurance company, giving them permission to transfer the settlement rights to the name of the buyer. Once the transfer has been confirmed, the buyer will release the lump sum payment to the bank account of your designation.
It is important to note that this entire process usually takes somewhere between six to ten weeks, and there is not much that can be done to streamline this process, other than choosing a qualified company to handle your case.