You’ve probably heard about companies that buy and take over annuities and structured settlement payments before, and if you have either of these things, you’ve probably considered selling yours. There are a lot of benefits to getting the lump sum of cash as opposed to payments over a period of time, especially if you’re looking to make an investment or have fallen on hard times. Of course, it’s one of those endeavors in which you probably don’t even know where to begin.
The process is fairly straightforward: you decide to sell, and begin shopping around. Once you pick a company, you need a judge to sign off on the transaction, and then you receive your check. Of course, it’s a little more detailed than that.
Should I Sell My Structured Settlement Payments?
It’s a big decision to make, so there are a few questions you should ask yourself before pulling the trigger. For one, do you need that lump sum in a short period of time? Is this the best, and most efficient, way to get your hands on the cash? As with anything, there are always going to be situations where this is the best possible option, and there will be situations where there are better moves you can make. The point is to do some serious thinking before moving on to the next step.
Shopping Around
Maybe you’ve already been contacted by a firm who wants to buy your settlement, The most important part of this process is doing your homework, researching a firm and reading reviews before making any decisions. Always go with a company that seems to be reputable and doesn’t nave to negotiate with a third party. Once you bring the proposal to a judge, he or she has the duty to agree that this decision won’t cause you financial hardship, so it’s best to make sure you’re in the clear beforehand as to not waste any time.
Beginning the Process
You can rest assured that both federal and state laws are on your side when it comes to the procedure of transferring your payments. Thus, you will be provided with a hard copy of the details of the transaction, including the specific amount of the settlement to be sold, the specific amount to be received by you, and any other pertinent financial details. You’ll have to have sufficient documentation on hand to begin the process, including the contract issued by the insurance company that you signed. The buying company will want to ensure that you are making the right decision by making the sale, and you have to be prepared to prove that to them.
Once this is completed, the firm will make you an offer which you can choose to accept. Then you’ll receive the associated documents, which you’ll have to sign, have notarized, and mail back to the firm. The entirety of the process can take up to two months, but some companies will provide an advance while you wait.
Meeting with a Judge
When all the documents have been signed and received, you’ll be required to appear in court, where you will provide the judge with the aforementioned associated documentation, including extensive financial information. It is up to the judge to agree that you are not jeopardizing your finances, so the more documentation you provide, the better.
Finally, once the offer is approved by the court, you will begin to receive your cash.