When looking to sell settlement, one of the most important things to consider is how long the process will take. Unfortunately, there is no one-size-fits-all answer to this question, as the time it takes to sell structured settlement payments will vary depending on several factors.
Factors to Consider Before Selling a Structured Settlement
If you’re thinking about selling your structured settlement, it’s a good idea to know the factors that affect how long it takes. Here are some of them.
1. How Many Payments Are in Your Settlement?
The number of payments left on your settlement can impact the time needed to sell it. For example, if you have only 12 monthly payments before the final payment, there is less time involved than a person with 25 years left on their settlement plan.
In this case, you should be able to sell right away, whereas the person with 25 years might need more time. They would not get as much money up-front as someone with just one year of payments remaining. The amount of money you get up-front is called a “lump sum” payment.
2. How Much Money Are You Trying to Sell for a Lump Sum?
If you are looking for a large lump sum payment, it may take some time to find a buyer willing and able to pay that amount. Conversely, if you’re asking for a smaller lump sum, then there might be more potential buyers out there since it’s an easier purchase.
3. Is the Structured Settlement Annuity?
It can take a bit longer if you are selling an annuity because there is more paperwork to process and more hoops for the buyer to jump through. This is due to regulations set by state governments that must be followed when transferring an annuity.
These are just some of the factors involved in how long it takes to sell a structured settlement. Keep in mind that every situation is unique. Therefore, always consult with an expert before making any decisions.
How Long Does It Take?
The straight answer to this question is that it can take between one and four months to complete the transfer of a structured settlement. Two primary factors determine this. These include the statute and the calendar.
1. The Statute
The courts should approve all structured settlement transfer requests. They will ensure that you are getting a fair deal and that all your rights are protected. It also provides that you understand what you’re doing and the consequences of selling off your future payment streams.
The statute for court approval can vary from one state to another. For some states, it may only take 30 days or less to get approval, while in others, it could take up to 90 days or even more cases. Your attorney will let you know how long this process will likely take before moving forward with the petition process for court approval.
It’s important not to rush through the approval process because if it goes too quickly, you may end up getting a raw deal. The lawyer and the court will ensure that everything is fair for both sides and protect your rights.
2. The Calendar
Another factor that determines how long it takes to sell a structured settlement payment stream is the calendar days. Your attorney can estimate how many calendar days will be involved to complete the process of selling off your future payments streams from your structured settlement agreement.
Remember that not every day counts when it comes to this particular transaction. So, an attorney’s experience with similar cases can help determine which dates are most relevant.
For example, if there are any holidays involved during this period, they might have to be excluded or included depending on whether people work during these days or not.
Structured settlements are significant. They help you get a constant income stream over a period of time, allowing you to budget and plan your future finances. Many people use this money when they need it the most, like after an accident or injury, which may have left them with long-term medical expenses.