Frequently Asked Questions
“Will I have to sell all my future payments?”
No.
In most cases it’s in your best interest to only sell a portion of your future payments.
“How long does it take to get money?”
45-90 days.
Getting all the necessary documents turned in quickly can expedite the process, but for the most part scheduling the court appearance is the biggest variable in how long it takes. If you need money faster and you qualify, you may be eligible to receive a cash advance in a matter of days.
“Is selling your structured settlement payments the same as a loan?”
No.
Most banks do not accept settlement payments as collateral towards a loan. In a loan, you receive money in exchange for a promise to make payments later to pay it back. In a payment sale, you transfer ownership of future payments to someone else in exchange for a lump sum.
“Do I have to pay taxes on my structured settlement?”
The short answer is typically no.
The tax status of your structured settlement payments is set when your settlement issuing company structures the settlement and rarely changes.
Money you receive from a personal injury or medical event isn’t considered income and so it isn’t taxed like income, according to Section 104(a)(2) of the Internal Revenue Service’s code.
“Do I have to pay taxes when I sell my payments?”
Again, the short answer is typically no.
The long answer is rooted in the Victims of Terrorism Tax Relief Act of 2001. The legislation signed into law in 2002 protects those who sell their structured settlement payments due to financial hardship from paying taxes on that amount. The same law made it mandatory for a person seeking to sell payments to sit before a judge to protect the person from predatory deals that may make the seller’s hardship worse.
“Can a minor’s settlement payments be sold?”
Sometimes.
If parents can demonstrate financial hardship that significantly impacts the child, a judge may approve a payment sale of a settlement belonging to a minor. Often in these cases the judge appoints a Guardian Ad Litem. The guardian is an objective third-party who weighs in on the sale to ensure that the best interest of the child is represented in the sale.
“Can I sell if my payments haven’t started yet?”
Yes.
In fact, many of the customers we’ve helped were in need because their payments hadn’t started yet. If you’re facing a financial hardship and can’t wait the months or years before your payments are scheduled to start, we can help.
“I’ve already sold some of my payments in the past, can I sell more?”
Yes.
If you’ve sold payments in the past with another company, you’re still eligible to sell your remaining payments. If you haven’t sold payments ever, we can help with that too.
“Why would a judge not let my payment sale go through?”
A judge has to approve the sale of structured settlement payments. And sometimes they don’t approve. Judges can deny a sale if:
- The person selling can’t show the judge they have a clear financial need.
- The sale is unfairly in the interest of the company buying the settlement or if the buyer takes advantage of the seller’s financial need.
- The person selling doesn’t show to the judge that they understand the transaction that’s happening.
“If I’ve been turned down in the past, does that mean I can’t sell payments now?”
Judges are involved in the selling process to protect you, the consumer. Sometimes they turn down a payment sale to protect the best interest of an individual.
However, that doesn’t mean that you will never be able to sale payments. Plenty of instances exist where someone who’s been turned down in the past go on to get the money they need.
If you’ve been denied in the past you can try again. It’s best to know exactly why the judge denied the transfer and ensure you clearly solve the problem the judge noticed. For instance, if it is because you cannot demonstrate financial need, bring all the documents you need before the judge to show your financial hardship.
“What types of financial needs are considered a reason to sell payments?”
It’s important to understand the difference between needing to sell your payments and wanting to sell. For example, simply wanting a new car isn’t a good reason to sell. However, needing a reliable car to make it to your job across town could be.
Other reasons:
- You or a loved one needing medical care
- Facing foreclosure or eviction
- Paying off high-interest debt
“I’ve called other companies and I have a quote. Would you guys beat that offer?”
Yes.
If you have a written, legitimate offer from another structured settlement buying company we will beat their quote by at least $500.
Nothing on the Internet should be taken as legal advice. When in doubt, speak to a lawyer or financial professional.