[The following is a guest post]
A financial or an insurance arrangement wherein the person with a claim for a personal injury can resolve claim for damages by agreeing to receive regular payments instead of the entire amount as a whole is called a structured settlement.
These can include income tax requirements as well as benefits. They serve as a regular source of income to compensate for your injuries and suffering. But, often when you are in need of cash for unexpected expenses or the periodic payments are not sufficient to make ends meet, you can go for selling your settlement.
No matter what your reason for selling, a structured settlement buyout is not all peach and roses. To be careful and prepared, you should be mindful of some of the problems that you might face:
The transfer process
A transfer is what the sale of a structured settlement is called. This surprisingly is done in court as well. The court judge has the complete authority to decide whether you can continue with the sale of your settlements after verifying that it is the best option available for you. The court arrives at this conclusion after considering several important factors. The court will agree to grant you permission if it is convinced that your financial situation is substantially weak and you need the money on an urgent basis which is why you need to perform the transfer.
Carefully choose the funding company
Choosing the funding company that you are considering selling to can be a matter of concern. Not only is the court responsible for approving the sale but also determines whether the sale is fair or not after a stringent evaluation of the terms of the settlement. The main objective of the court in such cases is to ensure that as a claimant and the owed party, you do not get taken for a ride. The court would accept a deal in cases wherein you get to keep up to 90 % of your due money. The entire responsibility of getting through this problem is in your hands. There are a few factors you must keep in mind while shopping for the right company.
- You should ensure that the funding company should be bonded, licensed and also insured against any loss.
- Go through the customer reviews for an unbiased opinion about the company.
- Don’t just judge the company’s reliability on the quote offered.
- Make sure the company offers a personal experience. They should take the responsibility to guide you through the entire process. From monitoring investors to helping you do adequate preparation for your hearing, they should be able to answer all your queries and questions.
- The major thing you need to ensure is that they should offer a closing date guarantee which is a schedule of your payment plan.
Get good legal help
Since you are new to the entire process, it is unwise to just rely on the buyout company for all your information. You should look to getting an attorney who will ensure your settlement has better chance of getting accepted. Their advice can help you choose the right company as well.