Based on recent news about the secondary market for settled structured settlements, you already know that selling your future annuity payments to a third party is perfectly legal. But just knowing that you are able to sell your future annuity payments means that you shouldn’t. It is just that some of the details surrounding this transaction may not have been made clear to you. When you first decided to sell the future annuity payments you were probably expecting to receive a lump sum payment in a very short period of time. Instead, now that you have a better idea of what you’re getting into, what are the pros and cons, and what are your options if you do decide to pursue the sale?
The biggest issue with selling your future payments is that it is illegal. In order for a settlement agreement to be legally binding, both parties must agree to the terms, which includes an exchange of cash for a structured settlement payment. If there is no court approval for the exchange, you will likely find yourself facing fines, fees, and possible jail time if you attempt to pay these monies without court approval. Unfortunately, there is no way for anyone but the parties involved to determine whether or not the exchange is actually legal, and in most states it is not!
In addition to not having a court approval process, there is also the issue of how selling structured settlement payments will actually work out financially for you. Since you were injured while working and unable to work, you probably won’t receive a large amount of money right away. Even if you do receive a small amount of money, chances are that you will need the money over time in order to live your life to the fullest. This is why it is so important to hire a good financial advisor to help you plan your financial future when you decide to sell structured settlement payments.
Unfortunately, it may be financially better for you to keep your payments and face the possibility of having to deal with medical expenses as a result of your injury, rather than taking the lump sum settlement. Keep in mind that your lump sum may not be enough to cover all of your medical expenses. Even if you are able to get some part of your expenses paid by selling your remaining payments, you may have to pay thousands of dollars in legal fees and other expenses associated with selling your payments. In addition, it will be difficult for you to sell the payments to a factoring company because this type of company typically does not accept this type of structured settlement. In fact, it may be more difficult to obtain approval from your medical doctor to use one of these factoring companies to pay your medical expenses.
When you decide to sell structured settlement payments, you will need to contact a factoring company. The factoring company will be responsible for taking care of paying your medical bills, as well as making sure that you get a lump sum of money in exchange for selling your future payments. However, when you contact a factoring company to determine whether or not they will be willing to buy your future payments, you will need to provide the details of your case in order to ensure that you are being treated fairly.
In many cases, the factoring companies will offer an immediate payment. However, the factoring companies will also want to know how much of a down payment they will need to make on the settlement. If you have a large amount of money that you are trying to sell, a large down payment can be used to help seal the deal and ensure that the sale goes through. You should also keep in mind that there is a limit to the amount of payments that a buyer can purchase from you, depending on the value of your settlement factoring companies buy.