The need to repair your home could arise suddenly. A pipe could burst and flood your kitchen, or a tornado or hurricane could damage your entire house. If you need fast cash for repairs, and you receive structured settlement payments, a settlement funding company may be able to help.
And if you’ve been thinking about renovations for years – or since you first saw your home – a settlement funding company can probably help you with home renovations as well.
Structured settlements work well for many personal injury victims, particularly when a victim will have long-term or lifelong medical expenses. But when you need quick cash for repairs or major home renovations, a structured settlement may fall short, and you’ll need another option.
How Do You Sell Your Structured Settlement?
If you were injured by negligence and you are receiving a structured settlement as compensation for a personal injury claim, you can probably sell the payments for cash to pay for home renovations or repairs.
First, however, you will need to find a structured settlement buyer, let that buyer review your settlement, and consider that buyer’s offer for your structured settlement payments.
If you decide that the buyer’s offer represents a good move for you, then you will need approval from the court to sell your settlement. If you agree to the buyer’s offer, and if the court signs off on the transaction, a lump sum can be transferred to you almost immediately.
What Does the Law Require?
Although the sale of a structured settlement must be approved in a state court, federal law requires that the transfer of a structured settlement must:
- be in a seller’s best interests
- also consider the best interests of a seller’s dependents
- comply with all court orders and applicable state and federal laws
Some states add more requirements, but generally speaking, you can probably sell your future structured settlement payments if you need to renovate or repair your home or if you are facing some other type of financial emergency or hardship.
Consider Your Options
Another alternative is selling only some of your future payments. Selling too few of your payments might mean you will have to go through the process more than once, which will increase your costs and reduce the final amount you end up with.
But selling too many payments – too much of your settlement – could increase your tax burden. Consider your options carefully and discuss those options with a trusted financial advisor.
Then have the prospective settlement buyer explain all of the terms and conditions of their offer. Have all of your questions answered and your concerns addressed before you sign or agree to anything.
How Much Can You Receive?
A number of considerations will determine the lump sum amount you receive for your structured settlement payments: the exact amount of each settlement payment, the frequency of those payments, and the dates when you receive the payments.
To receive an estimate, or to learn more facts and details about selling your structured settlement payments, consult the professionals at Universal Funds. We are ready to help you renovate your home and to provide the personalized financial information and services you need.