How long does it take to sell settlement?

Structured settlements are financial instruments which are used to provide consistent payments to personal injury victims over a long period of time. In such situations, the recipient is protected from making bad financial decisions that come along with receiving a lump sum of money.

Why sell settlement?

Buying or repairing a home, funding your university education, investing in a business venture and paying a debt are some of the valid reasons that may make a person to want to have a lump sum amount as opposed to periodic payments. At such a point, you may want to sell your structured annuity. Selling a structured settlement is not hard. All you are required to do is to decide that you want to sell, get a credible company, get your sale approved by a judge and finally get your money.

Will I have to sell my payment stream?

No. In fact, it is more rewarding to sell partial payments. 

How long does it take to sell settlement?

The time taken to complete each transaction differs from one state to another because each state has its own rules and regulations which govern the transaction process. However, upon signing a contract, it usually takes an average of forty five days.

What is the normal discount rate when selling structured settlements?

If you are thinking of selling your settlement, you ought to ensure that the offers you are getting are fair and reasonable. The lump sum that you will receive is usually reduced by a factor and you do not receive the full amount. The factor is usually based on the projected interests, which is referred to as discount rates. The discount rate that you will have to provide before you receive the lump sum depends on a number of factors such as; the number of payments remaining, the total amount of your settlements, the number of payments you want to sell and the date that the payments are due.

Will I pay tax if I sell my structured settlement?

The money you get from selling your settlement will have similar tax treatment as the payments you get from the settlement annuity. Structured settlements are treated as tax free by the periodic payment settlement act of 1982(public law 97-473).