How to Get Money from a Structured Settlement
Like many Americans, you're probably feeling the squeeze on your finances lately. For many, having some extra cash on hand would make a huge difference in fighting factors like inflation, high rent, medical costs, and more.
If you have a structured settlement, it’s likely that you’ve encountered the frustrating issue of having money that rightfully belongs to you trapped in a future annuity payment. You know the money is there—but it’s just out of reach.
But it’s possible to get a lump sum for your structured settlement payments. In fact, you have the right to sell some or all of your future payments for funds now. If you need money now, not later, then selling might be the best solution for you!*
How selling your structured settlement works
Selling your structured settlement payments isn’t just a business deal—it's also a legal process. That’s why there are a few steps you’ll have to take to sell your structured settlement payments, the most important being finding a buyer and getting court approval for the sale.
Finding a buyer for your structured settlement payments
The first step you’ll want to take to sell your structured settlement payments is to find a willing buyer!
You could find a buyer in any of the same ways you’d find any type of service: searching on the internet, getting a word-of-mouth referral, reading company reviews, seeing a commercial on TV, and so on. In fact, potential buyers may have even reached out to you directly to inquire about purchasing your payments. This is because structured settlements are often a matter of public record when they are entered into as a part of court proceedings.
But not all buyers are created equal. You may hear from companies (like JG Wentworth), or you may be scouted out by people who hope to broker a deal between you and a buyer.
Selling to a company vs. using a broker
When looking for someone to purchase your structured settlement payments, you’ll encounter both companies and individual brokers who can make offers to purchase your settlement payments.
The process of selling your payments through a broker goes like this: the broker works on your behalf to find someone who might be interested in purchasing your future payments; they facilitate the sale and court approval process; and then they take a cut of the payments you sold to the purchaser.
There are a few major cons to working with a broker to sell, though:
- They might not be able to find a buyer who is willing to purchase your payments
- They might rope you in by saying that your payments are worth a certain amount, but there's no guarantee that potential purchasers they work with will buy for that price
- They may not be able to get you your funds quickly after you sell
For that reason, it’s often a better option to sell directly to a purchaser rather than to sell through a broker. When you sell your structured settlement to JG Wentworth, for example, you’re selling directly to us—so the price we quote you for is the price you get.
Getting court approval to sell your structured settlement payments