This settlement refers to an agreement between a complainant and a plaintiff. Instead of receiving a huge amount of money for damages, the victim gets the money through periodic payments. This act is an effort by the U.S government via Congress to ensure that injury victims are under a stable income. The payments are in installments regardless of any emergencies.
Victims who need lump sums of money for personal emergencies can sell their settlement to a factoring company like CashInYourAnnuity. The process involved is a sensitive matter that is time-consuming and consists of regular visits to the courtrooms. It is advisable to acquire a trusted attorney or financial advisor with experience in the sector to find a credible factoring company for you.
Tips to Guide You throughout the Process of Selling the Settlements
Understanding the Law under Structured Settlements
The terms and conditions highlighted during the compensation determine if you can sell your settlements. Usually, settlement protection falls under the Structured Settlement Protection Acts per various state laws. These laws are always against unethical factoring companies, with the statutes requiring a judge’s approval in each process. The judge considers the terms of the sale, your financial capacity, and the need for sale. They only approve the procedure when everything is done legally.
Evaluate Your Needs
It is essential to know that factoring companies pay less of what they will receive. Critically analyzing your need for selling will enlighten you on tackling the condition. Normally, you can partially sell your compensation, hence leaving yourself with relatively adequate “insurance cover.” However, deciding to sell six months’ worth of settlement leaves you as the victim with no consistent income for the following respective months. As a result, it is best to revise your financial situation before selling partial or complete structured settlements.
Understanding the Value of Your Settlement
The structured settlement typically amounts to the present value of the contract formulated, but you earn on discounted calculations.
The purchasing companies consider the period it will take for them to receive the amount paid to you. They cover the cost of the void created after a complete transaction to you after approaching them. Factors like the number of settlements you are selling also affect the amount payable. The structured settlement calculator can help you assess the amount to be received.
Analyzing the Factoring Company
Purchasing companies are very stubborn, especially when you approach them first. Hence, it would be best to avoid blackmail out of being desperate. Critically study the history of the said purchaser with the help of experienced attorneys or financial advisors. Their expertise can come in handy in connecting you with credible companies.
You can also directly communicate with the various companies to get their quotations. This aspect will inform you which company will pay better hence you’ll have a good return for your money.
Select a Company
Having analyzed the companies and chosen one, go through the tabled documents and sign upon satisfaction.
The paperwork includes:
- Identification forms
- Application form
- Copy of the structured settlement and agreement
- Copy of annuity policy
Going through with this stage states that you’ve officially agreed to sell your structured settlements.
You have the right at this stage to request an advance payment. The amount given can help you cater for your needs before completing the legal process that might take a few months.
Appearance in Court
At this stage, the factoring company of choice is responsible for making all the arrangements necessary and providing the documents needed for you to appear before a judge. Court proceedings include answering questions just as a formality. Afterward, the judge confirms if decisions made in the process are in your best interest and considers third parties like dependents in approval of the sale as tabled.
Success in this stage kicks off the actual transaction process and finalization of documentation.
Receiving the Full Amount
Ensure you receive the whole amount as specified in the paperwork formulated with the purchasing company. The transaction usually happens within a week after the court’s approval.
Note that the government deducts any amount you owe in the paid amount, for example, taxes or child-support arrears.