Did you know the average personal injury settlement is $62,600?
The amount allocated for personal injury settlements is often dependent on the severity of the case. If the outcome is life-changing, it doesn’t hurt to ask for a higher amount. Make sure the settlement includes compensation for emotional damages, physical damages, and any other impairments you may be facing.
If you receive a structured settlement, you’ll usually continue receiving payments over a period of time. But what happens if you need the money in a lump sum? You can sell your structured settlement!
Here’s a guide on how to do it.
Understand the Nature of Your Structured Settlement
A personal injury settlement is the first thing that comes to mind when you think of a structured settlement. Nobody can blame you! It’s true that a vast majority of settlements come from various personal injury cases, such as car accident cases and medical malpractice cases.
However, these settlements aren’t all structured the same way. This can affect how you approach the selling process.
For instance, while selling a $50,000 settlement can be fairly easy and quick, it can be more challenging to sell a $1-million-dollar settlement. The latter might require you to sell to multiple companies, which can complicate the process. Or maybe you’ll only need to sell a portion of the settlement, which calls for the determination of how much of the portion to sell.
Understanding the nature and size of your settlement will enable you to develop a clear selling strategy from the start.
Get Court Approval
It’s a legal requirement to obtain court approval before selling a structured settlement.
Perhaps you’re wondering why you need anyone’s nod to get the money that’s rightfully yours. That’s understandable, but remember one of the main structured settlement benefits is financial security. You could quickly blow through the money if you were to receive it in a lump sum, possibly leaving you and your dependents in financial trouble.
That being said, there are legitimate reasons you might want the cash now. Maybe you’re in severe debt occasioned by your medical expenses or inability to work.
The court’s role is to evaluate your reasons for wanting the cash and determine whether selling the settlement is in your best interests. It’s advisable to seek the advice of a structured settlement attorney before starting the court process.
Choose a Factoring Company
A factoring company buys structured settlements. It takes up your structured settlement payouts and pays you the settlement amount (minus the charges) you need in a lump sum.
There are thousands of factoring or settlement companies in the U.S. They aren’t created equal, though.
It’s your responsibility to find a company that puts your interests first. Read online reviews to gauge a company’s reliability and reputation. Get multiple quotes to consider service fees and other charges before making a pick.
Selling Your Structured Settlement Shouldn’t Be Hard
Since personal injury settlements are typically large, parties often reach a structured settlement agreement. However, this doesn’t mean you can’t access more cash if you need to. Selling your structured settlement will help you achieve this.
All the best and keep tabs on our blog for more helpful articles.