If you (as the plaintiff) have won a personal injury, wrongful death, workers’ comp, or any type of lawsuit, you will receive substantial compensation for your loss.

Settlements from lawsuits may be awarded in many ways. They can be disbursed in a lump sum or paid to you over time in regular, tax-free payments. Many “structured settlements” are paid by using an annuity purchased on behalf and managed by an insurance company.

However, you might need immediate cash now or later, so you may be advised to sell your structured settlement and take a single lump sum payment. Before making such a big decision, you must consider this transaction’s financial “pros and cons.”

A critical part of what you need to know concerning the Pennsylvania state laws on selling your structured settlement involves the buyer of the settlement. The “buyer” of your structured settlement is commonly a company whose business is to help you “cash out” of your settlement or annuity.

These companies must disclose to you (as the asset holder) exactly how up-front payments reduce the value of your future payments or your entire settlement amount.

Pennsylvania law requires that a calculation referred to as a ”‘discounted present value” is clearly explained and shows you the future value of incoming scheduled payments from a structured settlement or annuity.

State law also requires disclosure of all costs involved in the transaction, including:

  • All service charges that could apply.
  • All processing fees involved.
  • All commissions paid to the purchasing company.
  • All legal fees that you must pay.

However, there can be many valid and necessary reasons for you to need the immediate case and for you to sell all, or part, of your structured settlement. The Pennsylvania courts may see your need for the transaction, but they still provide strict criteria for judges to ensure that the terms are in your best interests.

It’s also prudent to do your research and search out a local Pennsylvania funding company with an excellent track record and spotless reputation. Your funding company should be diligently dedicated to customer service and have a sincere willingness and mission to help you complete your sale in the best way possible and with your interests in mind.

What Are Some Reasons I May Want to Sell My Structured Settlement?

For some people, receiving a structured settlement works simply fine. However, you never can know when great financial opportunities arise. You could also need immediate funds for continued education, business opening, family emergencies, etc.

Getting your cash immediately could get you out of debt, provide immediate resources to get your family ahead, or pay off your home.

Your situation is unique, and there are a million reasons that a large case influx could be needed. The issue, however, is that not all of us have the wherewithal to seize these great opportunities when they present themselves.

You won your lawsuit and currently receive payment from a structured settlement. However, you can combine the consolidated purchasing power of months, years, or even decades of periodic structured settlement payments by selling your annuity.

This provides you with a potent tool for capitalizing on great opportunities or simply entirely altering your and your family’s life for the better.

Do I Always Need the Court’s Approval to Sell My Structured Settlement in Pennsylvania?

In almost all cases, the simple answer is yes, you do. Once you win your lawsuit and are awarded a structured settlement, you commonly go through a secondary market whose sole business is the purchase of existing structured settlement payment rights.

These structured settlement buyers are licensed, legitimate businesses that offer a discounted lump sum in exchange for all your rights to receive future payments.

This type of transaction is common in Pennsylvania, and dealing with a funding company with a sound, empathetic and reliable record is paramount. You must be fully informed about all parts of your transaction and that everything is transparently presented to you.

By working with a well-known Exton funding company, you can be confident that they know what the Pennsylvania courts are looking for. They will present your transaction correctly and show that your best interests have been preserved.

What’s the Basic Process for Selling My Structured Settlement?

As stated, one of the first things you need to do is find a local structured settlement funding company that will collaborate with you every step and look out for your interests and theirs.

After that, the funding company will analyze your structured settlement’s legalities and prepare all documents for your signature. You should always make sure you ask any questions and concerns you have. Reputable funding companies expect you to do this and will help you understand all aspects of the transaction.

After you’ve approved and signed a contract, you will have a court date on which to get your transaction validated by a judge. Typically, it may take approximately 45 days to receive your money from beginning to end.

Although you must obtain court approval, you always have the legal right to cash out your payments, either in part or whole.

However, you must remember that every structured settlement purchase transaction is unique. Still, your experienced funding company will be familiar with all of Pennsylvania’s laws regulating these transactions and ensure that they are adhered to.

I Need To Sell My Structured Settlement; How Should I Proceed?

First, remember that why you wish to sell your structured settlement is a topic that will be discussed when you go before the Pennsylvania court. Also, no matter your reasons for selling, you must always ask the funding company to explain the “pros & cons” involved in your transaction and be sure you understand all the pertinent data, fees, and details thoroughly.

Well-run, knowledgeable, and reputable Pennsylvania funding companies will want to ensure that your reasons for selling are sound and that all the rules and regulations pertaining to these transactions are followed.

There are many sound financial reasons to sell your structured settlement for a lump sum of cash. Consult with a thorough, sound, and empathetic Exton funding institution with a solid history today; it’s up to you in the end, and your funding company wants to help you get what you deserve when you need it.