The question, which appeared on Yahoo this morning, suggests that an annuitant has a newly minted “wet ink” structured settlement who is looking for cash. One important lesson to learned however, is that that one cannot “withdraw monies” from a structured settlement because a structured settlement is not a deposit acount (like you would have at your bank). It is a contract to pay money in set amounts ( or amounts based on a set formuia) on set dates.
When you agree to a structured settlement, the right to receive payments is your asset. Most of the time keeping your structured settlement in place is the best decision. But there are time where selling structured settlement payments is the only option. If you have a structured settlement, you need cash now, and have exhausted other sources for cash, then you must first find a buyer of structured settlement payment rights.
You can simply put the words “structured settlements” into a Google or Yahoo search on the Internet and come up with a plethora of choices. Online structured settlement factoring exchanges make this job easier since you invite companies to bid on what you have to sell rather than the time consuming and emotionally draining chore of calling each one separately. Moreoever, why leave yourself vulnerable to be “owned”, like a wildebeest crossing the Mara River facing a gauntlet of crocodiles when you can take matters into your own hands?
“Catsh” now pusher stalking its prey.
Another lesson to be learned…
if you are nearing settlement on your case make sure that you are working with a settlement planner who discusses your or your loved one’s overall needs, including short term needs. It makes abolsutely no financial sense to enter into a structured settlement and within a month or two after, sell all or a portion of your structured settlement payment rights.
Once you find a buyer, the process for what is known a “structured settlement factoring transaction” begins. In order to obtain liquiduty from a structured settlement one has to obtain Court approval. This process is designed to protect you from being taken advantage of. It works for the most part, in my opinion. It does not help you to get the best rate however. It only helps to determine if the rate is reasonable. The problem is if you are selling a long or deferred payment stream, a few percentage points differnce is discount rate could mean tens of thousands of dollars dif ference.
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