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When selecting a structured settlement company, it’s important to keep certain factors in mind to ensure you find the right fit. Here are some key things to consider:

1. Customer Service

Customer service is the backbone of any reputable business. How a company treats its customers speaks volumes about its professionalism. Your initial calls or inquiries can give you a good idea of whether they take their work seriously. A reliable company will prioritize your needs, responding to calls and emails promptly and within reasonable timelines.

2. Low Discount Rate

The discount rate is a critical factor when evaluating structured settlement companies. It refers to the rate of return the buyer expects in exchange for your future payments. The lower the discount rate, the more cash you’ll receive. Be sure to choose a company that offers the lowest possible discount rate to maximize your payout.

3. Reputation and Experience

Experience and reputation are essential when working with a structured settlement company. A company with a proven track record is more likely to provide reliable and quality service. Additionally, be cautious of companies with a history of exploiting customers—working with a well-regarded firm can save you from potential issues.

4. Free Quote

Look for a company that offers free quotes. A free quote helps you understand all the associated fees and charges, allowing you to compare offers from different companies before making your decision.

5. Multiple Buyout Options

A good structured settlement company should provide multiple buyout options tailored to your specific financial needs, rather than pushing you to sell all of your payments at once.

What is the Discount Rate?

The discount rate is the percentage of future payments that the buyer will take in exchange for giving you a lump sum now. These rates typically range from 9% to 18%, but they can sometimes go higher, significantly impacting how much money you receive.

Popular Structured Settlement Companies

• Fairfield Funding: Based in Atlanta, Georgia, Fairfield Funding specializes in buying structured settlements nationwide. Their team of experienced professionals is known for handling any settlement-related issues.
• CBC Settlement Funding: Headquartered in Conshohocken, PA, CBC has been operating since 2009, offering multiple payout options and great customer service.
• Novation Settlement Solutions: Located in West Palm Beach, Florida, Novation Settlement Solutions is known for fast transactions and allows clients to get quotes over the phone or ask questions via email.

How to Sell Structured Settlements

1. Get quotes from different companies.
2. Accept the best offer.
3. Obtain court approval for the sale.
4. Receive your money.

In summary, structured settlements are designed to provide long-term financial security for personal injury victims. When choosing a structured settlement company, the key is to select one that offers the best terms and maximizes your benefits.

Getting compensation for injuries and property damages can be a lengthy and costly process. Plaintiffs who settle their cases often wait up to a year before receiving any money. If you need immediate funds, pre-settlement funding might be a solution.

Pre-settlement funding, also known as litigation financing, provides an advance on financial losses from personal injury or property damage cases. Terms of pre-settlement funding vary by state, and most agreements require the lender to take court action to recover their funds if the case is successful. Below, we explain how pre-settlement funding works and help you decide if it’s the right option for your situation.

How to Qualify for Pre-Settlement Funding

To qualify for pre-settlement funding, you must be involved in a personal injury lawsuit and have completed the discovery phase of litigation, where both sides share evidence. You will also need to demonstrate a strong case by providing proof of injury.

Lenders will evaluate the type of case and how it’s likely to be handled. Some cases may be easier to fund than riskier ones like medical malpractice. Requirements vary based on the specifics of your case.

Reasons to Consider Pre-Settlement Funding

Pre-settlement funding can be helpful for plaintiffs who need quick access to cash while waiting for their case to settle. Litigation costs can add up, and this funding can help you manage financial challenges, such as medical bills, lost wages, or other urgent expenses. It acts as a “rainy day” fund, preventing financial distress during the legal process.

Cases Eligible for Pre-Settlement Funding

Pre-settlement funding may be available for a wide range of personal injury or property damage cases, including:

• Automobile accidents
• Construction accidents
• Medical malpractice
• Slip and fall cases
• Real estate disputes involving property damage

These cases often involve significant expenses, and pre-settlement funding can provide financial relief while awaiting resolution.

How Pre-Settlement Funding Works

The process starts by understanding your state’s laws regarding pre-settlement funding, as it’s often available only through the plaintiff’s attorney. A personal injury lawyer can help connect you with a lender. You can also consult your state’s bar association for legal resources.

Once connected with a lender, you will sign a funding agreement outlining the terms and your responsibilities. It’s essential to review the contract carefully and have your attorney review it before signing, as it is legally binding.

Pros and Cons of Pre-Settlement Funding

Pros:

• Provides quick access to funds
• Helps cover urgent expenses like medical bills
• Allows you to pursue your case without financial strain
• If you win your case, you receive the full awarded amount

Cons:

• Fees may apply, covering the cost of setting up the funding and recovering the funds through a lawsuit

Best Pre-Settlement Funding Companies

When selecting a pre-settlement funding company, it’s important to choose one that is reputable and financially sound. Some of the top companies include:

• Oasis Financial
• Peachtree Financial
• Express Legal Funding
• LawCash
• High Rise Financial
• Legal Capital

These companies are known for their reliability and customer service. Be sure to read the agreement carefully, including the fine print, before making a decision.

Conclusion

Pre-settlement funding can help you cover living expenses and medical bills while waiting for your case to settle. If you’re facing financial hardship during the legal process, it may be worth considering. Be sure to start the process as soon as possible and consult with your attorney to ensure it’s the right option for you.

Structured settlements are long-term, tax-free payments awarded to the claimant in a personal injury lawsuit. If the monthly payments from your settlement are insufficient for your financial needs, you may have the option to sell some or all of your future payments.

Below are the key details about selling structured settlements:

1. What Is a Structured Settlement?

A structured settlement is a series of tax-free payments awarded to a claimant to resolve a personal injury lawsuit. These payments are made over a set period and are designed to provide financial security to the injured party. The defendant may agree to a structured settlement voluntarily, or if the case goes to trial and the defendant loses, the court may order structured payments.

If the total amount awarded is relatively small, a lump sum may be paid. For larger awards, courts typically favor structured settlements to ensure long-term financial stability.

2. Why Sell a Structured Settlement?

You may decide to sell your structured settlement to meet urgent financial needs. Common reasons for selling include:

• Paying medical bills
• Making a down payment on a home
• Starting a business
• Purchasing a car
• Financing a college education

Before selling your settlement, carefully plan how much money you need and how you’ll use it. This ensures you make the best use of the funds you receive.

3. Settlement Sale Options

Structured settlements can be sold in various ways, depending on your financial goals. The primary options include:

• Full Sale: You sell your entire structured settlement annuity, receiving a large lump sum and no future payments.
• Partial Sale: You sell a specific number of future payments over a set period. Once this period ends, you resume receiving your regular payments.
• Percentage of Monthly Payments: You sell a portion of each monthly payment for a set period, allowing you to receive a lump sum while still getting partial payments.

Each option has fixed costs, and selling multiple portions of your settlement over time can increase your total costs.

4. The Process of Selling Settlements

The process of selling structured settlement payments typically takes up to three months. Here’s an outline of the steps involved:

1. Receiving Quotes: Start by getting quotes from several factoring companies. These quotes are typically provided for free and detail how much the company will pay for your settlement. Be mindful of how fast and how much you can receive from each offer.
2. Weigh Available Options: Carefully compare the terms of each offer and choose the one that best meets your financial needs. Select a company with a low discount rate and a strong reputation. Once satisfied, sign the necessary paperwork.
3. Get Court Approval: The factoring company will arrange a court hearing to approve the sale. The judge ensures that the sale is in your best interest and that the terms are fair.
4. Receive Your Money: After court approval, the buyer will notify your insurance company, and you will receive your lump sum payment within five business days.

5. Tax Implications

Structured settlement payments are intended to cover damages or injuries and provide financial stability. They are generally not considered income, so selling them typically does not trigger tax liability. However, it’s important to confirm this with a tax professional.

6. Understanding the Discount Rate

The discount rate is the percentage a buyer takes when giving you cash upfront for your future payments. A higher discount rate means you’ll get less money. Also, watch out for any extra fees that could lower the total amount you receive.

Concluding Remarks

Structured settlements offer long-term financial security. However, if you have urgent financial needs, selling some or all of your structured settlement can be a viable option. Make sure to carefully assess your options and understand the process before making a decision.