How to get Cash in Advance on a Structured Settlement

A sale of a structured settlement involves the assignment of future payment rights from the person receiving the payments (known as the payee, annuitant or structured settlement recipient), and a third party. The process of selling a settlement of this nature is governed by not only Federal law but also governed by the state where the annuitant resides. While state laws differ slightly, many of the individual laws have common elements. These elements include a disclosure period, a court filing, a notice provision and the assignment for a lump can only be consummated by the entry of a court order.

cash for a structured settlement

The court that hears a transaction that proposes to convert a future structured settlement or portion thereof to a lump sum must assess whether said transaction is in the best interest of not only the payee but the payee’s dependents. As you might expect, this can be a very factually intensive discussion with each judge exercising his or her judicial discretion to determine whether permitting the transaction is in the structured settlement recipient’s best interest. From California to Maine the courts throughout our country are presented with petitions relating to the assignment of structured settlements on a daily basis.

By the nature of it being a court proceeding as well as the fact that state law, in general, requires 20 days’ notice of the hearing to any interested parties, the process can take some time. It is fair to assume that between the day that a petition related to the assignment of a structured settlement is filed and the day the case comes before a judicial officer, it could be as little as a month and as much as 2 to 3 months (in some areas). In other words, if you need “cash now” and your goal is to satisfy this need by the conversion of a structured settlement annuity to a lump sum, you should expect the lump sum of cash not to come over night and appear in your bank account.

Many people looking to get a lump sum of cash for a structured settlement fail to recognize the process takes such a long time. Whether you are looking to buy a house, stop foreclosure, purchase a vehicle or pay off debt, you need to recognize the timeframe involved and not wait to the very last minute thinking the money will hit your account tomorrow. With that said, it is also critical that you not move forward in a haste fashion and not consider better options for raising the capital you need.

Not rushing to sell a structured settlement also means that if you have determined that doing so is, in fact, in your best interest, that you consider talking to more than one structured settlement buyer and evaluating not only what they can offer you as a lump sum but also what is the best way, based on your specific needs to format a structured settlement buyout. Keep in mind even if you decide to raise money through the assignment of your structured settlement it very well might not mean that you should or have to sell all of it, or even the immediate payments that you are currently relying on for you day to day. It is also important for you to budget for NOT receiving the structured settlement because once you sell it and get your lump sum, you will not get the payments back—rarely on structured settlement transactions for lump sum designed a repayable loan with the structured settlement utilized as collateral.

One of the aspects that folks often inquire about is the availability of a “cash advance” as part of a structured settlement sale. The reason this feature is often of critical import to individuals is that their current situation can be aided by receiving some amount of money today even if they will not receive the full lump sum if and until a court enters an order approving the assignment as in his or her best interest. Cash advances may be available from the structured settlement buyer you elect to work with but it is important you inquire about this when you are asking about the services that structured settlement buyer offers.

How much of an advance on your lump sum buyout can you receive? What is the process to get that? The answer depends on a host of factors including but limited to the state where you live. It cannot be stressed enough that while a cash advance may be an important aspect of the transaction to you, it is critical that you evaluate the transaction itself- whether liquidating part or all of your structured settlement- is in your best interest. While you are in the best position in most cases to assess what will improve your life it is never a bad idea to pause and contemplate all options before you make any decisions

What is a Structured Settlement? Can I Get a Cash Advance on a Structured Settlement?

There is a lot of confusion about what is a structured settlement. Many people will search the internet trying to figure out if they should accept one, what are the benefits and drawback and if they have one what is the process to liquidate if the time comes and they need a lump sum of cash. At the outset it is important to briefly explain that a structured settlement, in a very general sense, relates to the settlement of a lawsuit whereby the injured party (often referred to as a plaintiff) accepts payments overtime to compensate for his or her injury instead of all the money upfront. By virtue of the fact that a “structured settlement” is in fact a “settlement”, the plaintiff and defendant must come to an agreement that the lawsuit, claim or demand be settled in this fashion.

cash for structured settlement

It is also important to recognize that when one is talking about a structured settlement, they are merely referring to fact that a resolution of some claim occurred that resulted in periodic payments overtime. A settlement structured in this fashion can result from claims or cases ranging from serious personal injury to workers’ compensation to employment disputes and more. While the structures of settlements of these types of cases may all look the same, the legal, tax and financial implications differ depending on what the basis of the underlying claim that gave rise to the structured settlement was. The most significant differences for some people may be the future potential assignabillty of a structured settlement if need comes about in the future where the recipient wants to “cash out” the settlement and get all the money (or part of it) upfront.

It is critical to understand that much of the law in this area is governed by specific state code provisions. What you might be entitled to do in Connecticut if you live there, may differ than what a California structured settlement recipient has the right to do. It can be a difficult task to ascertain what your options are. For example, you may live in a state that allows (what is often called) a commutation provision or process in the event you received a structured settlement from a workman’s compensation case or you may live in a state that allows you to assign your right to worker’s compensation to a 3rd party buyer. In particular, the assignment or liquidation of worker’s compensation is very much controlled by the state where the claim was resolved.

Somewhat differently, if you have a structured settlement from a personal injury lawsuit, there is a specific Code provision that governs when and how you can liquidate some or all of the structured settlement and that Code provision works in tandem with, in most cases, a state law in the state where you currently reside (not necessarily where the case was settled). The Federal and State law in this area of assignment of structured settlements require that a hearing is held in a civil court and that the court find, among other things, that the assignment of your structured settlement payment is in your best interests. While unlike, in most cases, with worker’s compensation payments, you do potentially have the right to petition a court to allow you to liquidate structured settlement payments from a personal injury lawsuit.

This brings to the natural question of whether you can get a cash advance on a structured settlement. As noted earlier, the answer is very specific to the state where a workers compensation case was settled. With respect to personal injury structured settlements, one must be clear what they are referring to as a structured settlement cash advance. As we discussed, getting a lump for a structured settlement is generally permitted if the court in the state where you live approves the transaction as in your best interest. This process however can take between 1 to 2 months and often times the need for an immediate cash advance exists. When this is the case, some structured settlement buyers (subject to state law again) may release a portion of the lump sum that they have agreed to pay if and when a judge approves the transaction in your home state. This process and the ability of a cash advance on your lump sum is something you should address with the 3rd party making an offer to buy your structured settlement before you sign any documents. 

Like many areas of the law, a structured settlement is heavily controlled by state provisions and the actual documents themselves. Before pursuing any liquidation options you should consider alternatives and potentially meet with a legal advisor to discuss the implications of the transactions. While there are countless justifiable reasons why cash now can benefit any of us, there are often good reasons why converting future payments rights to a lump sum may not be prudent.

If you are interested to get a cash for structured settlement, please visit the website at http://www.catalinastructuredfunding.com
Alternatively, you can leave a message on (800) 317-3769.

Sell Structured Settlement Maryland – Updated

Sell Structured Settlement Maryland  - Updated

Maryland Structured Settlement

Maryland Structured Settlement

Anyone following the structured settlement secondary market knows that there is a lot of conversation these days about buying and selling structured settlement payments in the State of Maryland.  Given that, it may be an appropriate time to revisit the topic and discuss what options there are for someone with a structured settlement that lives in Maryland and feels it is in their best interest to get a lump sum of cash for sum or all of their structured settlement.

Maryland is a fairly large and diverse state- It is bordered on the north by Pennsylvania   and on the West and South by West Virginia and Virginia.  Of course it also borders the District of Columbia.  Not withstanding its small geographic size it is both densely populated and has some of the highest median income in the country. The majority of the State’s population can be found in Baltimore, Maryland as well as in the areas surrounding Washington DC.

Like with any population that is as sizable and diverse as Maryland, the financial circumstances of its residents differ dramatically.  In the same vein, the structured settlements that residents of Maryland are entitled to differ significantly.  Much like the rest of the issued structured settlements, the annuities range from small monthly payments and lump sum to some very substantial future annuity streams.

Whether or not your current circumstances warrant keeping your structured settlement in tack or liquidating some or all of it- very much depends on your curren life  Of course, selling a structured settlement in Maryland (and in any state for that matter) results in your receiving less than the full face value of the payments that you are liquidating for a lump sum. Consequently before you proceed with moving forward with such a significant economic decision, you are well advised to really think whether the transaction is in your best interest.

Once you make the conclusion that it MAY be something that you can benefit from, you should speak to various Maryland structured settlement buyers- you may be surprised by the spectrum of offers you receive.  Getting quotes is always free and comes with no obligation and can be a good starting point for purposes of deciding whether or not getting a lump sum is in your best interest.  Whether you live in Maryland or anywhere else, it is important that you properly consider all options and alternatives as making the decision to liquidate a structured settlement- even part of it- is a big decision.

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How Far Out Can You Buy Life Contingent Structured Settlement Payments and Factors that are Considered

How Far Out Can You Buy Life Contingent Structured Settlement Payments

In the world of structured settlement buying, the most unique asset that purchasers can pay a lump sum for is life contingent structured settlement payments.  As the phrase suggests, these are annuity payments from a structured settlement that are contingent (generally speaking) on the mortality of the payee under the annuity- although in some cases they are contingent on a related third parties life.

Understanding when and how far out you can sell life contingent structured settlements requires a well versed understanding of the asset as well as some common sense.  On a basic level, you must understand that you are receiving cash today (a “lump sum”) from a structured settlement buyer and in return there is an inherent risk that the buyer may never collect the annuity structured settlement payments or all the payments it contracts to purchase because the measuring life dies prior to the date of the last life contingent structured settlement purchased.  To mitigate that risk, structured settlement buyers employ a variety of tools.

A tool that some life contingent structured settlement buyer implement is a life insurance policy.  This life insurance policy serves to “hedge” the risk that you the measuring life may pass away and therefore the buyer would not get the full benefit of the bargain in connection with the annuity payment stream it has contracted to acquire.  To understand how this works in its entirety is best left to discussion when you speak to the life contingent structured settlement buyer.

Reaching Your Goals Means Understanding the Valuation of your Life Contingent Structured Settlement

Reaching Your Goals Means Understanding the Valuation of your Life Contingent Structured Settlement

Moving to the question at hand:  how far out can a life contingent structured settlement company buy payments?  This depends on a host of a factors, the most obvious of which are (1) your age; (2) the size of your life contingent structured settlement payments; and (3) when the life contingent structured settlements are due.  By way of example, and only example, lets compare to scenarios:

a)  Seller is a 18 year old Olympic athlete that is the model of health of health.  This young, Healthy seller has immediate life contingent structured settlement payments of $2500 per month

b)  Seller is a 78 year old, former smoker, with various health conditions and is overweight.  This seller has immediate life contingent structured settlement payments of $2500 per month.

Which seller can sell there payments?  Both.

Are the payments, even though they are the exact same amount (i.e, $2500 per month) worth the same to a structured settlement buyer?  No.  Why is that?  Both payments are contingent on a the persons mortality, and the first seller seems more likely to live a longer period of time from today.  Of course, the 78 year old may live for a very long period of time from today but at the same time is more likely not to than the 18 year old Olympic athlete.

If you Are at a Financial Crossroad Getting a Valuation of your Life Contingent Payments May be Prudent

If you Are at a Financial Crossroad Getting a Valuation of your Life Contingent Payments May be Prudent

This side by side comparison provides an extreme and simplified version of the issues that are addressed by a buyer of life contingent structured settlements.  Depending on the factors and others, you may find that a structured settlement buyer could offer you money for payments due in 2050, 2060 and beyond.

Cal the Experts at Catalina Structured Settlements for more information at -800-31703769.

The Confusing Phrase of “Structured Settlement Cash Advance”

The Confusing Phrase of “Structured Settlement Cash Advance”

We frequently get contacted by folks looking to get a cash advance on a structured settlement.  Cash advances seem to be fairly common these days in other realms.  For example, many websites and for that matter store fronts are dedicated to things like:  Title loan cash advances, payday loan cash advances and other forms of getting money immediately for some asset or a right to payment in the future.  While there are companies that offer structured settlement cash advances, the nature of these advances are dramatically different than ones you find, for example, if you look to get an advance on your car title.

On a very simple level, a car title cash advances works to allow you to receive some amount of money today in exchange for putting up your automobile’s title so that the entity giving you the cash today has an asset it can collect against should you fail to pay back the money within the agreed period of time. That is to say, if you take out a $500 car title cash advance it is more akin to a “loan” in that the company will look to take possession of your car in the event you fail to pay the money back… with interest.  ”Structured settlement cash advances” however do not work in this fashion.

In order to truly get money from your structured settlement, you as the annuitant, generally have two choices (although variations of these two choices exist).  The first choice, and the most prudent if you are not in need, is simply to wait for the structured settlement payments to come in on the predetermined schedule.  As you know, structured settlements are set up to provide some degree of economic protection.  As the annuity issuers and owners are generally well established companies, you can rest assured that in most cases, you will receive your payments as scheduled.

If you find yourself in a bad spot however, and you have explored other options for raising money, one thing you may consider is selling your structured settlement for cash.  This option however has clear downside including what rate the purchaser uses to discount your payments for calculating a lump sum.  If you determine this is your best option, you may also want to discuss the type of cash advance a company will provide you as the transaction moves through the system and you wait for a court to either approve or disapprove of the sale of your structured settlement.  While the availability of a cash advance on structured settlement sale is definitely important to many customers, it is only one of a host of other factors you may want to consider.

Stay Focused When Evaluating Options Including a Structured Settlement Cash Advance

Stay Focused When Evaluating Options Including a Structured Settlement Cash Advance

Call Us at 800-317-3769 to discuss various options that we can provide.

Creative Life Contingent Structured Settlement Buy out

Creative Life Contingent Structured Settlement Buy Out

When it comes to selling life contingent structured settlements not all buyers are created equally.  As you may have read on other sites, there are various web pages out there that seem to indicate that the company behind the website have experience getting individuals cash for structured settlements that are life contingent.  The reality, however, is that many of the sites are purportedly nothing more than marketing groups that find “leads” and then sell the lead or information to 3rd parties.  While you may or may not come to a reputable life contingent settlement payment buyer through this methodology, we believe that it is better to start with a group that will directly work with you and actually has the expertise and background to do so.

Knowing the secondary market place for life contingent structured settlement sales is important when choosing a company.  What you do not in this ever changing market place is that there are various options you may have depending on your age, health, and due date of the life contingent structured settlement payments.  Some buyers, especially ones that do not really understand the space, may only provide you one cookie cutter, take it or leave it offer.  This may be true even if you multiple alternatives exist.

Structured Settlement Life Contingent- Learn About Options

Structured Settlement Life Contingent- Learn About Options

Take for example (and just as example), a 26 year old healthy annuitant that has a monthly structured settlement of $5,500 that starts paying in 2026.  Maybe the life contingent structured settlement is due from Hartford or Allstate Life or Metlife or one of the other well known structured settlement annuity issuers.  Now, with such a large monthly structured settlement- and coupling that with the annuitants fairly young age, the fact that s/he is in good health and that the monthly structured settlement income comes back in March of 2026, there are a variety of options that could be designed to get this person a lump sum.  Not all the options require that the annuitant sell the full monthly life contingent payment stream.  More so, it is possible to construct a transaction that does not even start with the life contingent structured settlement due in March of 2026.

Like with any sale of future income, the sale of life contingent structured settlement payments should not be done in haste and the annuitant may be best off to shop around to various vendors to see which company offers the best option and/or the most cash- depending on the circumstances.

At Catalina Structured Funding, we take pride in our ability to assist people get a lump sum for all or some of their structured settlement annuity payments.  Call us at 800-317-3769.

Filtering Out Structured Settlement Buyers

Filtering Out Structured Settlement Buyers

Long time readers of our blogs, know that we have focused on the value of finding a structured settlement buyer you are comfortable with before you commit to getting

Which Structured Settlement Buyer is Best for You

Which Structured Settlement Buyer is Best for You

cash for an annuity.  The truth is that this undertaking is more important than ever.  It seems with each passing day, another website pops up or another person claims to be an experienced structured settlement buyer.  How do you, the person looking to sell a structured settlement for cash, makes heads or tails of these claims?

It is important that you do not leave your common sense behind when filtering out which structured settlement buyer to chose.  While a pretty website is nice to look at, the truth is there is no correlation between the appearance of a website and the quality of the structured settlement buyer.  Nowadays, a good looking, comprehensive website is fairly easy and inexpensive to put together.  What you really need to do is look past the website and dig deep into the experience and professionalism of the people behind the website.

While you may search things like “reviews of structured settlement buyers” or list of “best structured settlement buyers”, this to may lead you down a path that is misleading.  Some of the websites you find will be merely paid listings, where a structured settlement buyer remits a fee to the website domain owner and in exchange the domain owner includes the company on the list of best structured settlement buyers.  There may be no vetting or reviewing of the structured settlement buyer before inclusion on this list– merely, you pay and you are included.  While this may not always be the case, we advise to be careful of any list that claims to rank the best structured settlement buyers.

So what are you to do?  While the first step may be to contact a company and get a feel for whether they are trustworthy and a group you could potentially work with.  Probably best to speak to 1, 2 or 3 structured settlement buyers- more if you think appropriate.  When you settle on moving forward in greater detail with one or more, you can ask for references.  References could include former customers that have worked with the company to sell a structured settlement or outside professionals that may be willing to act as references.  While in each case the process may be cumbersome, getting to a third party outside the organization of the structured settlement buyer  may be a good idea.  You can also always ask a professional you know for a reference or a referral or have them contact structured settlement buyers on your behalf.

You can reach Catalina Structured Funding at 800-317-3769.

Life Contingent Payments from an Inherited Annuity- Understanding the Documents

Life Contingent Payments from an Inherited Annuity- Understanding the Docs

Cashing Out Life Contingent Annuity Payments from Structured Settlement

Cashing Out Life Contingent Annuity Payments from Structured Settlement

From time to time we will get a call from an individual that has inherited a structured settlement annuity.  The inheritance usually comes from the death of a family member- although like many assets, a person can bequest the remaining value of their annuity structured settlement to any person they like (in most cases).  Often times it is a child that inherited the structured settlement from a parent and in other unfortunate situations it is a structured settlement that was payable to a child/minor and inherited by a parent.

Since the person that contacts us with an inherited structured settlement is not the original annuitant, they are often not as familiar with the benefits due under the annuity.  In rare circumstances, the person may know that they inherited the structured settlement or are supposed to get the rights to the remaining balance in the annuity but are not entirely sure what is left to be paid by the life insurance carrier.  We are happy to talk to you about the circumstances surrounding your inheritance and if need be facilitate you getting the information you need to determine what you are actually entitled to.

Keep in mind that during the course of the original annuitant’s lifetime, he or she may have previously sold or assigned a portion of the structured settlement for a lump sum.  Through court records and in some cases, through speaking with the annuity issuer, we are able to get you information about what if anything was sold during the annuitants lifetime and what remains.  This is a first good step and you may already have this information from the probate matter or as a result of receiving an updated benefits letter from the annuity company.

If you are looking at the annuity contract itself, or the underlying settlement agreement or qualified assignment, you may see reference to “payable for life” or “life contingent payments”.  These payments are different than the guaranteed ones in that they cease being made (or never get made) once the annuitant passes away.  Consequently, if you have inherited a structured settlement and the annuity documents refer to “life contingent structured settlement payments” that the annuity company guaranteed to make, you should note that the death of the original payee of the structured settlement resulted in the termination of the annuity issuers obligation.  This may be slightly confusing but a careful review of the documents and understanding the nature of life contingent payments will bring clarify.  We are happy to further elaborate and explain.

Contact Us About Life Contingent Structured Settlement Payments or Inherited Annuities at 800-317-3769.

All Structured Settlement Buyouts are Not the Same

All Structured Settlement Buyouts are Not the Same 

As a person looking to sell a structured settlement that has spoken to various buyers you may have many offers on the table.  How do you differentiate the offers to determine which is the best structured settlement buyer for you to elect to do business with may be issue you are currently grappling with.  In order to truly consider the top alternative for you, you must really understand the offers.

Look at the Numbers Carefully Before Picking the Best Structured Settlement Buyer for You

Look at the Numbers Carefully Before Picking the Best Structured Settlement Buyer for You

The first step, and maybe the most obvious, is to determine whether the structured settlement buyers are looking to buy the exact same structured settlement payments.  If you have a decent size annuity from the settlement of your lawsuit (or an annuity you inherited), you may be surprised by the number of options you have.  Different structured settlement buyers may be offering to purchase distinct portions of your structured settlement for a lump sum.  When comparing offers you must take the time to determine if you are truly being offered apples to apples. In other words, are your best structured settlement buyout proposals for the same payments and the same amount of each payment.  For example, if you get $2000 per month for the next 20 years, are all the structured settlement buyers offering the lump sum for the same period and same amount, or are some making offers for 10 years and $1,000 and others looking to buy $750 for 15 years.

Next you want to determine what the NET amount you will receive will be.  That is to say, some companies that buy structured settlement payments may make offers that reflect the gross amount payable to you and others may refer to the net.  The

Do Not Be Confused About Your Purchase Price When Selling a Structured Settlement to a Buyer

Do Not Be Confused About Your Purchase Price When Selling a Structured Settlement to a Buyer

gross amount to buy structured settlement payments may not reflect certain fees and costs that will be deducted at the time of funding.  Lets say you are being offered $21,500 as the gross amount payable to you but the fine print in the contract and on the disclosure note that legal or administrative or processing fees will be deducted from the gross amount.   If the processing, admin and/or legal fees total $2,000.00, this means that at funding you will receive $19,500 and not the gross amount of $21,500.  The $19,500 represents the NET amount and will be the actual amount you receive.

Often times you can quickly locate any difference between the gross amount and net amount by looking at the state issued disclosure statement.  This document often requires many of the key financial terms of the transaction.  The best structured settlement buyer will provide you with the disclosure statement in compliance with the state law where you live.  Each state law is slightly different so if the disclosure statement where you live is silent as to gross and net amount, you should specifically inquire with the structured settlement buyer and ask them to put the information you want in writing.

You can reach Catalina Structured Funding at 800-317-3769 for more information on any topic contained in this article.

Reverse Engineering the Sale of Structured Settlement Payments

Reverse Engineering the Sale of Structured Settlement Payments

Much is said about how much you may be giving up if you were to sell structured settlement payments for a lump sum.  Lets be clear, you definitely “give up” something when you convert a future amount of money for an immediate lump sum.  Think about it, someone is giving you money today and by the very nature of the transaction has to wait months if not years for the money to roll in.  You can NEVER get a lump sum today for an amount equal to collective face value of the structured payments you are selling.

How is it than that you determine if you are getting a fair and reasonable price for your structured settlement payment due in the future? Any such discussion should start with 1) do you really need to sell structured settlement for a lump sum?  2)  have you considered alternative options to cash today that would not involve your sale of structured settlement payment rights.  These two over arching issues, along with several others are a good place to start before you sign any contract or even get quotes to cash out your future annuity payments.

If you have determined that selling your structured settlement payments are the right thing to do, the next step is to evaluate whether or not there is an option beyond the sale of the entire structured settlement. Options may include partial and deferred sales.  In order to determine which option is right for you, it is often recommended that you shop around to several annuity buyers to allow them to get you a quote or quotes.  This process will not only allow you to see different options but will also allow you start understanding what the market may bear in terms of a purchase price for your structured settlements.

Figured Out How Much You Really Need Before You Sell A Structured Settlement        800-317-3769

Figured Out How Much You Really Need Before You Sell A Structured Settlement
800-317-3769

Take note that in most cases, if not all, cashing out a small annuity may be require you to sell all of your structured settlement payments- if you were to elect to sell.  Larger annuities, those with greater face value, may provide more varied liquidation options.  This may or may not be the case depending on restrictions your annuity issuer puts on the payment stream with respect to selling only part of structured settlement payments.

You need to be an educated shopper and understand the ramifications before you elect to proceed.  Calling CSF friendly and knowledgeable staff is a great place to start or finish when looking to sell structured settlement.

800-317-3769