Home Law Selling a Structured Settlement: How and Why

Selling a Structured Settlement: How and Why

Structured settlements are often the path taken when a legal matter is resolved out of court. When one party offends another, and that party knows it is likely to lose in a court of law, a settlement will often be presented to the party that brought up the charges in the first place. This happens in a room with both parties and their lawyers present and may go through several stages of negotiation before an agreement is reached. The settlement is a sum of money that is meant to provide restitution for wrongs suffered. For complex financial reasons, these settlements are often offered as periodic payments (usually monthly), rather than lump sums. While this is meant for the good of the party that has been wronged, it doesn’t always work out that way.


This is because legal battles are trying times. If you have brought suit against someone else, you have likely suffered physical pain, injury, time away from work, loss of a family member, or time in hospital or prison. What is more, your legal expenses may be adding significantly more strain to the already tenuous situation, leaving you financially strapped (and stressed) as you’ve never been before in your life. Structured settlements were intended to provide an option that would help such parties for many years to come, rather than creating the possibility that the money might be “blown” all at once. But when the structured settlement is pushed through, without the party being able to select it as an alternative to a traditional lump sum payment, this may not be sufficient to cover personal expenses following a complex legal matter.

In situations like this, it may be appropriate to sell one’s structured settlement. Many companies buy them up. The amount of money offered will vary widely throughout the industry, so people looking to sell or who have been approached by such companies will do well to get a lot of quotes. Another alternative is to take advantage of Structured Settlement Advocates who can help people like you navigate these complicated matters. They can help you get top dollar for your structured settlement: a lump sum that can meet all your needs during this difficult time in your life.

Advocacy groups like this can also help you through the state court process that is necessary before a settlement can be sold. The George W. Bush administration dictated that such sales must be authorized by state courts, because some companies take advantage of people in need of quick cash, offering only pennies on the dollar for their settlements. While it is good that these schemes are harder to pull off, this is just one more step in the way of people who need a lump sum in place of their small monthly payments. Advocacy can help make this process much, much simpler. In the end, you’ll be able to sell your structured settlement, for the best possible deal. When all is said and done, you’ll have the lump sum you may have wanted in the first place, but might not have been offered.

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