Structured
settlements are designed to help offset the financial cost of injuries you may
have sustained through an accident, as well as in other situations. The
settlement amount is held for you, and you receive monthly payments from it for
a specified amount of time. However, while all of that money is technically
yours, there are some legal requirements that have to be satisfied if you
decide selling your structured settlement is in your best interest. You’re not
free to do with it as you wish. Here’s what you should know.
Disclosure
When
you decide to sell your structured settlement to a buyer, the law requires that
buyer to provide you with “full disclosure” regarding the particulars of the
sale. The buyer should clearly explain all the financial terms of the sale so
that you understand them. This is vital for making a wise decision regarding
your financial future.
Cool Down
You
might think that once you sign the documents authorizing the sale of your
structured settlement, things would progress quickly. That’s not necessarily
the case. The law requires a cool down period during which you have the
opportunity to reassess your situation and change your mind. If you change your
mind during this period, you can cancel the sale with no financial obligations
to the buyer. This is important protection, and is designed to ensure that
you’re actually making the best decision for your needs, rather than a hurried
one.
Legal Advice
State
law requires the buyer to advise you that you should seek out professional
legal advice about selling your structured settlement. While it’s not mandatory
to get legal advice in all states, it is highly recommended, as it can help you
make a better decision regarding your financial future. An experienced lawyer
can point out things that you might not notice with the deal, ensuring that
you’re well-armed if you decide to pursue the sale with this particular buyer.
The Legal Process
In
addition to the legal requirements above, you will have to go back to court.
The sale of your structured settlement must be approved by a judge. There are
several factors that will weigh on the judge’s decision, including the reason
you want the money, your current financial situation, and whether the judge
thinks that the sale is truly in your best interest or not. The sale cannot
move forward until the judge issues a court order approving it. After that
point, you’ll be able to receive the lump sum payment for your structured settlement.
A
considerable amount of stress and hassle in the requirements above can be
eliminated by working with a structured settlement company. These firms offer
more than just a helping hand. They provide you with the means to get your sale
in front of many different qualified buyers and then accept bids on the sale,
ensuring that you’re able to get top dollar for your structured settlement.
It’s simpler and easier, and those are definitely things that benefit you.