Based on recent article on the secondary real estate market for structured settlements, you already know that transferring your settlement payments to a buyer is perfectly legal. However, before you shop around or consult with a lawyer or a structured settlement advisor who specializes in these hard life situations, there are some things you should consider first. After all, if you’re selling your settlement, between a lawyer or a structured settlement professional who knows the ropes, is it worth it to pay more for your present value? Here’s a look at what to expect when selling a settlement and why you might want to think ahead and prepare now.
In one word… yes! If you’re selling a settlement payment, whether it’s structured or unstructured, to a third party, especially a buyers that buy from a factoring company, there are two main issues to consider. One, the buyers will be paying interest on the debt. Two, the interest rate may not be what you signed up for when purchasing your settlement. And here’s the important point: when paying interest to a third party, you may be paying more than you would in the bankruptcy market.
Most buyers who purchase structured settlements are looking for immediate cash and don’t care much for the present value of the deal. They just want to get their hands on their money as soon as possible. This means they will be willing to accept lower interest rates. On the flip side, if you were fortunate enough to receive a settlement when it was under a true structured settlement plan, chances are good that the interest rate is locked in at a low rate. You will be paying nothing more than the interest rate on your original structured settlement payments, and in many cases, no more.
If you have a future payment against you that you do not want to sell, you can opt to have the payment transferred to a trust account. This process does involve a legal transfer, but it is typically done by a factoring company. Once again, you don’t have to worry about interest being paid at a discounted rate when selling future payments. Your original payments will continue to be protected, and will be available to you should you ever need them.
It is important to remember that selling structured settlement payments is not something that you should do without consulting a lawyer. Although you probably have no problem with selling them to a third party, a lawyer will tell you whether or not the sale of the settlement is allowed. A judge may also make a final ruling on the matter. As long as you don’t violate any laws, a lawyer can help you decide whether or not to sell. The same goes for selling the remaining balance of your settlement to a third party.
Selling your structured payments to an investment or accounts receivable company is a good idea if you want to quickly receive the money that you deserve. While a lawyer can tell you whether or not selling payments is allowed, most people prefer to do so without a judge’s permission. However, if you have a history of filing court cases, you may want to consult with a lawyer before proceeding. Only a lawyer can determine if selling payments to an investment or accounts receivable company would be in your best interest. The law firm of a qualified personal injury attorney can also guide you through the process, making sure that you are doing it in the right way.