So you have a structured settlement plan but want to use a lump sum amount for a vital project, like funding your education, paying off debt, starting a business, or repairing your home. All of these are good reasons to want more than the periodical payments you get from the settlement. At this stage, what you have to do is sell the settlement to a willing buyer, like MoneyUpFront.net. The process of selling your settlement is straightforward but you have to decide how much you want to sell and go before a judge to be able to access your cash.
We outline the steps involved in this process.
Step 1: Making the decision to sell
You should only make a decision to sell your settlement if you have valid reasons to do so. Don’t sell if the sale will adversely affect your financial situation in future.
Step 2: Shop around
By shopping around, you will be able to find what different companies have to offer as discount rates and service for your situation. The discount rate is the lump sum reduced by a factor of the projected interest earning.
Be careful to only work with funding companies that are reputable and work with integrity. Also steer clear of broker type companies that will not use their own money to fund you. The companies you are considering should be vastly experienced in the transfer process as ordered by a law court.
Finally, you should only consider businesses with an A+ rating at the Better Business Bureau and take a look at the complaints against them in the past and how they have been resolved. Ratings may be manipulated of course but you can still weed out bad companies by only working with the best.
Step 3: Pick one company and begin the process
From your shopping around results, choose the company you like best and initiate your sales process. You will be required to submit your policy and settlements or benefits letter. This will allow the company to make sure they are accurate and complete.
Step 4: Get approval from a judge
As soon as the necessary documents are signed and returned by the company, a local attorney will file them with the court. A hearing will then be scheduled. During the hearing, you will be expected to demonstrate why you need the money and how you intend to avoid putting the financial future of you and your family in jeopardy. However, as long as there are no discrepancies with documents tendered, the majority of cases sail past this stage. Here is a look at what you can expect in structured settlement court.
Step 5: Cash your funds
As soon as the judge signs the order approving the transaction, the order will be sent to the paying company to send your funds to the account provided by you.
From the signing of the contract, it will take around 45 days to get the money. However, this is dependent on the state as some states may have additional steps you need to complete before the transaction is sanctioned. To help you get through this waiting period, some companies offer cash advances.