How can selling my structured settlement payment get me out of debt?

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Being on the receiving end of structured settlement payments can have benefits — until you are in a pinch and do not have access to those future payments when you need them most. In these cases, having a pre-determined payment schedule does not help your immediate need to take care of expenses. Although this may be frustrating, you have options. Selling your structured settlement payments may be a viable option to get out of debt and receive a lump sum of cash.

How do I know if I can sell my structured settlement payments?

In order to sell your structured settlement payments, you will need to work with a company that will purchase some or all of your settlement payments from you and pay you a lump sum in return. Structured settlement types that are eligible to be sold typically include payments for personal injury, medical malpractice, and wrongful death. If you contact a company that purchases structured settlement payments, they will let you know if they can purchase your payments.

How long does it take to sell my structured settlement payments?

The length of the process varies when it comes to selling your structured settlement. However, on average, payments can take 45-60 days before things are finalized. Although it would be great if the process was instant, selling your structured settlement requires court approval — and courts can be rather slow.

How does the process work?

Once a company has agreed to purchase your structured settlement payments, a judge will have to approve the transfer of the settlement payments. Since structured settlements are typically large sums of money, the court must ensure that you are aware of what you are doing when you sell your payments and that the sale is in your best interest, taking into account any of your beneficiaries. There are state and federal laws in place to make sure that you fully understand the transfer agreement, how much money you will be walking away with, and all of the nuances of selling your payments.

While it may seem like a headache to have to deal with the court process, the state and federal legislation was passed to ensure that your transaction is in your best interests and that you understand the trade-off you are choosing to make.

What are the risks to selling my structured settlement payments?

The choice to sell your structured settlement payments is personal, and everyone’s circumstances are different. If you are struggling to keep up with bills and/or are drowning in high-interest debt, selling some or all of your structured settlement payments may be a reasonable solution. Knowing your options will help you make the decision that is best for your circumstances and finances.

All transactions are at Peachtree’s sole discretion and are subject to court approval and other underwriting requirements. Peachtree does not provide legal, tax or financial advice; please consult with appropriate independent professionals for such advice.

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