Thinking of Selling Your Structured Settlement?

Laura Woods | July 18th, 2014

selling a structured settlement

Many plaintiffs are awarded compensation for damages they’ve incurred in the form of structured settlements. Rather than receiving one lump sum payment, they are compensated through periodic payments spread out over a period of time.

Some people prefer this method, as it helps to keep to better manage their money, as they do not have the ability to recklessly spend a large lump sum. However, it often places a financial burden on others, as it keeps them from paying off medical, legal and other mounting expenses derived from the case.

Structured settlements are common in many personal injury cases, including:

  • Pharmaceutical litigation
  • Mass tort claims
  • Medical malpractice
  • Class action lawsuits

In fact, structured settlements are also becoming increasingly common in lawsuits involving personal damages, divorce, sexual harassment, discrimination, environmental damages, property loss, and wrongful termination.

But what about selling a structured settlement after you’ve begun receiving payments? For some, this possibility has a world of advantages in cases where a large influx of cash is needed right away.

Structured settlement loans

Many plaintiffs need their entire jury award or settlement immediately ─ not in the form of periodic payments. Post-settlement loans provide the opportunity to turn long-term payments into one lump sum payment. In fact, these transactions are not actually loans, but a cash advance on settlement money that is already earned. This helps plaintiffs afford medical, legal and other bills awaiting payment, rather than racking up late fees and damaging their credit score.

Many people find themselves needing a large amount of cash for a variety of other expenses. For example, it can be helpful to gain early access to the money for college tuition, a downpayment on a home, or to fund startup costs for a business.

Federal law prohibits plaintiffs to use structured settlement payments as collateral for loans, as they are provided on a tax-free basis. Additionally, federal law forbids plaintiffs from changing the terms of their settlement to convert payments into a lump sum. While receiving tax-free payments is a wonderful benefit, it doesn’t help matters for those who need the entire amount now. It can be frustrating to know the money needed has already been earned, but is out of reach.

Get the money you need now

LawStreet Capital is one of the most respected legal funding companies in the nation. As a direct lender, we can help assist you in the process of selling a structured settlement. While receiving periodic payments may work well for some plaintiffs, we understand that others need the full balance now.

There is no need to leave bills unpaid when the settlement that is rightfully yours awaits you. LawStreet Capital offers some of the industry’s lowest rates, paired with a simple application and friendly customer service representatives.

We’re here to help you make the right decision ─ not pressure you into selling your structured settlement. It’s important to us that you take your time to make sure this is the right decision for you prior to beginning the application. When you’ve had the time to make an informed decision, call us toll-free to start the application process.