Before shopping around and talking to different structured settlement companies, there are many factors you must consider, and these factors can be a huge difference between getting a solid payout and one that you may regret for years to come. If you don’t have a clear understanding of what you need, you may be talked into something completely different when you contact a structured settlement company. That would not be a good thing for you or your family. Consider the following:
- How much do you rely on your monthly payments to pay your monthly bills? If the amount is “extra” for you, then you are in good shape. If you use the amount to pay your mortgage or rent and without your monthly payment you would be “underwater,” it is time to walk away from the thought of selling your structured settlement. We don’t want to see you in a worse situation than you find yourself in right now.
- Is the company you are going to sell structured settlement to a good company? Don’t just trust the rating from the BBB (Better Business Bureau) as DateLine did a segment proving the BBB allows a company to “buy” a high rating. This is why Structured Settlement Watch was created. We watch these companies for you and tell you the good and the bad from each company.
- Do you need to sell your entire structured settlement? Some companies do not state you have this option. If you know the amount of cash you need right now to get out of the financial hole you find yourself in, you can sell just that amount and keep the rest. Never, we repeat, never give in to high-pressure sales tactics. There are plenty of companies, and you can hang up and call the next one.
List Of Settlement Buyers
|DRB Capital||This Florida-based structured settlement company currently has an A- rating from the BBB and has been accredited since 2015. Why the Excellent rating? According to our research and customer reviews, DRB Capital assigns one contact person throughout the process, so there are no endless holds, transferring you from department to departments, so your stress is lower throughout the process. They also offer gift cards and cash advances for doing business with them to help you with your short-term financial needs. The court dates are set up quickly, and communication has exceeded expectations. Overall, customers state they received the best offer and excellent customer service when doing business with DRB Capital.||Excellent|
|J.G. Wentworth||This company is probably the most well-advertised annuity/structured settlement company. They claim to be able to offer a large cash advance on an annuity purchase. This company also provides several other financial services. They also feature being able to set up a purchase before an annuity is even resolved. Some individuals may choose to sell some but not all of their future payments for a lump sum, and this is a service that J.G. Wentworth offers. If done in the correct way, an individual could sell their payments in such a way that they can schedule the payments to be made to them before bills are due. Or, if an emergency arises, J.G. Wentworth claims to have a very fast turnaround time, so you can get money from your future payments as soon as possible. Usually, J.G. Wentworth takes up to 48 hours to process funding.||Good|
|Peachtree Financial Solutions||Peachtree offers Pre-settlement, Structured Settlement, and annuity funding in much of the United States. They also cover a wide variety of law suits, such as malpractice, wrongful death, and product liability suits. Peachtree is known as one of the leading annuity companies and provides pre-settlement funding for amounts up to $750,000.|
Pre-settlement funding is often used to cover court costs and attorney fees and is obtained by selling a portion of your settlement before your case is complete. Peachtree also has a quick funding turnaround time of 1-3 business days. Peachtree also works directly with your attorney, so that you do not have the added stress of legal paperwork from the sale of your future payments.
Structured Settlement Funding is obtained through the sale of some or all settlement payments. Peachtree does not use an individual’s credit score during the settlement evaluation process because it is not a loan but sale of future payments. Peachtree uses factors such as payment timing, the length of your settlement period, and the total value to determine its purchase worth. They also utilize the same representative to handle your structured settlement process from start to finish.
Peachtree handles a variety of annuities. They do not purchase payments from retirement accounts, however.
|SenecaOne||Seneca One is a structured settlement company that offers cash advances on structured settlements. These types of loans are offered up to $5000 with a 24-hour minimum processing period. They also offer small interest-free loans of up to $1000 to help you pay expenses until your lump sum becomes available.|
Seneca One also offers to purchase life-contingent settlement payments. They also have a Settlement Specialist to help walk you through the entire sale process. It is always important to have your legal representative review any payment sales and go over the agreement terms with you.
Once the judge rules on your settlement, you can then turn around and sell all or part of your payments for cash. A major perk that Seneca One offers is zero legal or processing fees.
Selling Structured Settlement Payments – Things To Consider
- How much time is expected to lapse between the time your case is presented and the judge’s final ruling? This needs to understood, so you can understand if you will need pre-settlement funding for certain expenses.
- Will you have expenses that need to be paid urgently? This will help you and your legal counsel when trying to schedule settlement payments and begin working on the process for selling some your settlement payments.
- What type of law suit are you settling and where? Some companies may be limited to the types of settlements they handle, based on the type of suit and location.
When looking into selling options regarding a structured settlement and annuity, you must be sure that you research whether or not you will need a cash advance because of the time that will lapse from the time your court case is presented until the time that the judge rules on your settlement.
Be sure to have your legal representative thoroughly go through the selling process with you, especially with regards to the size of payments, payment schedules, and any contingencies that may apply. You will also need to know if your settlement is an assigned or unassigned case. You must also take into account any legal or medical bills that need to be paid as soon as possible.
Once all of these factors are accounted for, you can then determine what kind of payment options will work for you and whether or not it is necessary to sell some or all of your settlement payments.
While structured settlements are reasonably sound, there are occasions where an individual may want to sell their settlement payments, instead of receiving scheduled payments. Sometimes an individual might have to cover medical expenses because of a personal injury at work, and they need the money to pay those medical expenses, which many times, often outweigh the amount of a settlement payment if the injury is severe. That person may choose to sell their annuity for a lump sum, in order to pay those bills. To sell their settlement, they may turn to an annuity buyer. There are several well-known companies which buy structured settlements. When looking to sell structured settlement, it is important to shop around to see which buyer might be the best for you.
Structured settlements possess several important characteristics to meet certain legal and tax code requirements:
- They must be obtained from a lawsuit as payment for damages are counted separately from gross income.
- They are used as a means of worker’s compensation payment that meets the requirements of Worker’s Compensation law.
- They are paid to the person filing the claim from the person who the claim is against.
The money is then paid to the plaintiff by the defendant using a qualified assignment company when the defendant purchases a qualified funding asset to finance the settlement. Some payments may have the condition of being life-contingent, which means that the plaintiff must remain alive to receive payments.
In unassigned cases the plaintiff finances the settlement by purchasing an annuity from a life insurance company; these cases are much less common, however. The annuity issuer then sends all payments directly to the plaintiff. Thus, the defendant maintains the liability of keeping up settlement payments.