Selling a structured settlement is possible, but it’s a regulated process because these payments were originally designed to protect your long-term financial stability. Here’s a clear, step-by-step overview of how to sell a structured settlement and what to expect:

✅ 1. Decide Whether You Want to Sell All or Part of Your Payments

You can typically sell:

• Your entire payment stream

• A portion of future payments

• Specific payments scheduled for certain dates

Selling only what you need often reduces long-term losses.

✅ 2. Gather Required Information

Before you approach buyers, collect:

• Your structured settlement contract

• Annuity provider information

• Payment schedule and amounts

• Court documents from the original settlement

• Your ID and personal information

This helps buyers give accurate quotes.

✅ 3. Request Quotes From Multiple Buyers

These companies are often called “factoring companies.”
Compare:

• Discount rate (% the company takes)

• Fees (administrative or legal fees)

• Final cash amount

• Reputation of the company

Tip: The lower the discount rate, the more you keep.

✅ 4. Review and Negotiate the Offer

Legally, buyers must disclose:

• The discount rate

• Exact amount you will receive

• How much value you’re giving up

Never accept an offer without comparing alternatives.

✅ 5. Work With an Attorney (Sometimes Required)

Some states require independent professional advice. Even if yours doesn’t, legal review is wise.
An attorney can:

• Explain the long-term implications

• Verify the contract is fair

• Help negotiate a better amount

✅ 6. Court Approval Is Required

By U.S. law (and in many states), selling a structured settlement must be approved by a judge to ensure:

• It’s in your best interests

• You understand the financial impact

• The transaction complies with the Structured Settlement Protection Act (SSPA)

You’ll attend a brief hearing where the judge may ask:

• Why you need the money now

• How the sale affects your financial future

• Whether you’ve received independent advice

✅ 7. Complete Paperwork and Finalize the Sale

After court approval:

• The annuity issuer receives notice

• The factoring company finalizes the purchase

• You receive a lump-sum payment (typically within 1–8 weeks)

⚠️ Important Considerations

Selling structured settlements can be expensive financially. You might face:

• High discount rates (often 8–20% or more)

• Loss of future guaranteed income

• Tax consequences (depends on structure—consult a tax professional)

Always compare offers and consider whether alternative financing (loans, payment advances, etc.) might cost less.

If you want, I can also help you:

• Compare sample cash-out calculations

• Prepare questions to ask settlement-buying companies

• Understand whether selling makes sense for your situation

Would you like a breakdown of typical discount rates and how they affect your payout?