What You Need To Know About Selling Your Structured Settlement

Structured settlements are a common way to distribute large settlement amounts from worker's compensation cases, personal injury lawsuits and other similar cases. Those structured payments can give you a sense of financial security over time, because they provide you with consistent payments every month. Although most people like the security of these regular payments, sometimes financial difficulties can leave you wishing you had more of that cash up front. Here's a look at what you need to know about selling your structured settlement for a lump sum payment.

What Types of Structured Settlements Can You Sell?

Structured settlement payments come in all forms, including monthly settlements from lawsuits and even periodic lottery winning payments. The initial terms of the settlement agreement will dictate whether or not you can actually sell your settlement, so have your initial agreement available before you start looking for a buyer.

Some of the sources of confusion include payments from pensions, which are not considered a structured settlement, and therefore can't be sold in this same manner. Additionally, some worker's compensation settlements may include a mandate from the issuing state that you are not eligible to sell the settlement. A lump sum settlement buyer can help you determine if you are restricted by any of these things.

Why Might You Sell Your Structured Settlement?

There are many reasons to sell a structured settlement, and each case is a personal one. Here are a few of the most common reasons why people consider selling these types of periodic payments:

Needing major home repairs – if you're facing a home emergency and you need to have a new roof installed or other major work, selling your structured settlement might give you the money you need to do that.

Saving your home from foreclosure – when your monthly budget has become stretched beyond what you can afford, you might face potential foreclosure if you fall behind on your payments. Selling a structured settlement could give you the money you need to get out of debt and save your house.

Opening a new business – starting a new business can require a significant financial commitment. If you don't have immediate access to the funding that you need or you have been unable to secure any investors, your structured settlement may be the easiest and most reliable source of funds.

Paying college tuition – whether you're going to school yourself or paying your child's way through a college program, the tuition can be expensive. Depending on the total amount of your structured settlement, you may be able to sell it to pay a large portion of the tuition and ease that financial burden.

These are a few common reasons for selling structured settlements, but they are certainly not the only ones. The reasons for selling are as varied as the reasons for obtaining a settlement, so don't rule out selling your settlement for any financial need.

What if you don't want to sell it all?

Selling a structured settlement doesn't have to be all or nothing. If you need some cash now, but you don't want to sell the whole agreement, you can even sell only a portion of the settlement. Many buyers will assess your settlement agreement and evaluate the payments that you've received so far, then make you an offer even for partial purchases.

In those cases, you'll sell a certain number of your payments to the buyer in exchange for a lump sum amount delivered to you at the time of the agreement. This may allow you to meet the financial obligations that you need to without sacrificing the future security of routine payments once you've repaid the lump sum amount.

Talk with a structured settlement buyer about your situation to see if this is the right avenue for you to get the cash you need. You can also visit sites like http://www.mylumpsum.com for more information.