a millennial woman reads how to sell a structured settlement

How to Sell a Structured Settlement in 2021

Have you been injured recently? Did you go on trial to claim money for your recovery? Well, you have probably heard about a structured settlement that is different from a lump sum. Many people happen to be in the wrong place at the wrong time and end up injured in all kinds of ways. Fortunately, American law allows you to go on trial and claim your rights. If you’ve got a structured settlement, you might be wondering how to sell it.

Structured settlements are used not only in the United States, but in other countries as well, such as England, Canada, and Australia. Even though the sum of money is paid overtime under agreed conditions by both parties, this type of settlement comes with many advantages. 

One of these is that it speeds up the entire lawsuit and it helps both parties reach the conclusion faster and easier. Structured settlements are used in a variety of cases, from personal injury lawsuits to mass torts and others. 

But what exactly is a structured settlement and how to sell one? Read on to discover key facts and information about a topic of high interest nowadays. 

What Is a Structured Settlement? 

In every civil lawsuit, there is a defendant, the one that is being sued, and a plaintiff, the one that is filing the lawsuit. The defendant might have injured or hurt the plaintiff, the trigger of the process. Because lawsuits can sometimes take quite a long time to conclude, interrogate the witnesses, review proof, and so on, many civil lawsuits reach a structured settlement. 

This means that there is a negotiation between both parties which commonly agree on the terms of a structured settlement. The defendant agrees to pay the plaintiff a sum of money over a few months or years. The greatest advantage of a structured settlement is that it provides financial security over a while. On top of this, there are minimal taxations and fees applied to structured settlements so almost the entire sum of money reaches you. In some cases, the payments are delivered tax-free, so for the injured party, structured settlements come with the financial security they need. 

But however surprising it may sound, you can sell your structured settlement to a factoring company and get immediate cash. Below you will find some key information about the selling of structured settlement payments and what things you need to consider when you do this. 

The Process of Selling a Structured Settlement 

Selling a structured settlement can seem a challenging process to go through, especially because there are many milestones to meet. The most important thing that one should keep in mind when they decide to sell a structured payment is that this needs to be approved by a judge. Usually, the judge will consider a few key details about the one that wants to sell a structured settlement. 

For example, future financial obligations, life expectancy, or living expenses are among the criteria a judge will analyze. Usually, it grants permission for selling but in case someone does not have really good reasons for selling the structured settlement, they will reject it. 


Different law states apply, so depending on them, the process could take longer. Moreover, some states do not allow for selling a structured settlement, so law states need to be checked before starting the whole process. 

A key element is an attorney or financial advisor that offers support and shares knowledge during the whole process. They need to be people with experience in the structured settlement market so that your rights are protected during the whole time. 

So, which are the steps someone needs to go through to sell a structured settlement? How exactly can someone do this? 

How to Sell a Structured Settlement – 5 Steps 

There is no right or wrong in this process, but there are a few steps one could consider and go through that will make it easier. 

Good Reasons for Selling 

The first and most important step is to decide whether you have a good enough reason to sell. The judge will check many criteria when deciding whether to grant someone permission to sell a structured payment or not. When in a civil lawsuit a structured settlement was achieved, it was for the own good of the plaintiff. Because of the injury or harm, the defendant has caused them, they need financial stability over the next time as they will not be able to perform some duties and work. For a judge to grant someone permission to sell their structured settlement, they need to come up with reasons good enough. The future financial security of the plaintiff should not be affected if they sell their structured settlement. 


Finding a Factoring Company 

The next step is to find a factoring company or settlement buyer that is reputable. Some many buyers and companies do not complete the court orders on time and delay the entire process. Surf the internet for prospective buyers or factoring companies to choose one that understands the situation someone is in and is able and committed to protecting their best interests. One tip that would help someone sell their structured settlement to someone they trust is to contact consumer protection to see if the factories’ companies have any complaints. 

Contacting the Company or Buyer 

Many companies are buying structured settlements and finding the best one can be hard. But for sure there are one or two that stand out from the crowd, so the next step would be to contact the factoring company. At this step, there needs to be submitted a lot of paperwork, such as the settlement agreement, the annuity, ID, and many more. Before the next step, the company needs to check all the documents and decide on whether they agree to buy the structured settlement or not. 

Judge Approval 

If the company agrees to buy the structured settlement, then the next step is to get the approval of a judge. Here is the step of the selling process where the attorney would file the paperwork which needs to be signed both by the seller and the buyer. Depending on the schedule and availability of the judge, a hearing will be programmed. The judge will want to know the reasons for selling and will examine all the paperwork to understand the terms of the agreement. Moreover, the judge will also analyze the financial stability of the seller and the prospective impact selling could have on the financial security of both the seller and their family. 

Obtaining the Money 

If the process has been approved by the judge, they will then send the order to the company to the plaintiff agreed to sell their structured settlement. So, there is just a matter of time until the money transfer is made to your accounts. The entire process of selling a structured settlement could take from 45 to 60 days at least, so it is important to arm with patience. 

Ending Note 

Selling a structured settlement might seem a complicated process, but by following these steps, anyone can do it successfully. It is important to not forget that you need the judge’s approval to sell a structured settlement. They will grant it if the plaintiff is not compromising their financial stability and security by selling the structured settlement.


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