Selling Structured Settlements: What You Need to Know

Selling Structured Settlements: What You Need to Know

Selling Structured Settlements

If you have a structured settlement, it’s essential to know your options for selling it. A structured settlement is a series of payments made to an individual due to a lawsuit or other legal action. They are often awarded to individuals who have been injured and need time to recover.

There may come a time when you need access to the money sooner than the payments schedule allows. In this blog post, we will discuss what you need to know to make the best decision for your situation.

What Does It Mean to Sell a Structured Settlement?

When you sell your structured settlement, you are essentially selling payments scheduled to be paid in the future. Instead of waiting for all scheduled payments, you receive an immediate payment and give up future installments. All of the money you receive is yours to do with as you please, and once you give up your future payments it is irreversible.

If you sell your structured settlement for its total value, this means that the company buying it would also be responsible for all associated fees and taxes associated with it. That’s why it is crucial to work with a company experienced in this area.

What Are the Benefits of Selling Your Structured Settlement?

There are many benefits of selling your structured settlement. The most obvious benefit is the money you receive. You can use it for any purpose, including current and future expenses. For example, if you’re struggling with medical bills and other debt obligations, this money can reduce your financial burden and put you on the road to financial freedom.

 In addition, this money can help you plan for the future. For example, if you want to go back to school, you can use the money to pay for tuition.

Also, it allows you to take control of your finances by giving you choice and flexibility. Rather than waiting for your future payments, you can get money now – and put it toward something that will benefit you.

What Are the Disadvantages of Selling Your Structured Settlement?

There are also some disadvantages to selling your structured settlement. For example, you will be losing future income, and you won’t draw from the money you sell; this means that if your expenses increase, you will need to find another way to pay for them.

Also, if you have debts associated with your structured settlement, you may be required to pay them before you can sell your settlement. However, if you have a consumer proposal, debt consolidation loan, or other types of debt relief plan in place, this may change your situation.

Additionally, selling your settlement may affect any payout you receive from other settlements. For example, if you settle another claim for $10,000 and you currently receive $500 per month from your structured settlement, this may impact the amount you receive. However, you can better understand your situation by speaking with an experienced professional.

What Are the Steps in Selling Your Structured Settlement?

If you want to sell your structured settlement, you should take a few steps. First, make sure that you have a clear idea of what you want to do with the money. For example, will you use it for a specific purpose, or will you put it in a savings account? It would help if you also talked to a financial expert who can help you understand your options and whether it is the right decision.

Once this is done, you should contact an experienced company that will work with you throughout the process. They will handle things like valuation and other necessary steps. It is then just a matter of signing the necessary paperwork, and then you will receive your money.


It is crucial to determine whether selling your structured settlement is the best option for you. Transferring your structured settlement rights may impact the amount you receive from future payments. It is an irreversible process; thus, it is essential to review all the steps you need to go through when selling your structured settlement before deciding.

Before you decide, it’s crucial to talk to an experienced professional who can help you understand your options. Afterward, you can speak with a company that will work with you throughout the process. Get in touch with an organization of experts to learn more about selling structured payments.