• What is a structured settlement payment?

    Structured Settlement payments are often designed as compensation for a personal injury or malpractice suit. They are generally payments which you receive over a period of time. These payments are typically made monthly, yearly or in lump sums paid out over the course of many years.

  • Why would I want to sell my structured settlement?

    Structured settlement payments are typically established to compensate an injured person. Often times these payments are set up with the expectation that they can cover future medical expenses or provide a reliable source of income. Although initially the idea of a structured settlement seemed good, it has now become an inflexible payment stream which does not meet your current financial needs. We understand that your circumstances can change. Perhaps you have since recovered from your injuries and therefore future payments for this purpose are no longer needed. Additionally, sometime people find themselves in a position where a larger cash payment would better meet their needs today.

  • The structured settlement payments I have are life contingent. Can I transfer those?

    Absolutely, we specialize in helping you get cash for payments that are life contingent. We will not turn you away for simply having payments that are life contingent.

  • I don’t have a structured settlement but I do have an annuity, can I transfer it?

    Absolutely, you can still get immediate cash for transferring your annuity payments even if they were purchase as part of a retirement plan.

  • Can I use my structured settlement payments as loan collateral?

    Typically the answer is no because when you receive money from a structured settlement, your role is more like that of a beneficiary rather than the actual owner of the money. Think of it as a paycheck. Once you receive the payment, the money becomes yours. Until you actually receive it, the money is not truly yours even though you know that more is coming. A structured settlement is more like a promise to pay from the company which acknowledged that they have an obligation to make these payments to you. Due to this, banks are less likely to allow you to borrow money against future structured settlement payments.

  • Is it legal to sell structured settlement or annuity payments?

    Yes. Although there may be language in your structured settlement agreement that states you can not accelerate or assign your payments, many courts’ cases have upheld and supported an annuitant’s right to assign their payments.

  • Do I have to sell my entire structured settlement?

    No. There are multitudes of ways in which you can sell all or part of your structured settlement payments. For more information regarding the possible options for the sale of your structured settlement payments see our available options.

  • How about lottery payments? Can I sell these?

    Just like a structured settlement, you are allowed by most state lottery rules to sell your lottery winning payments in exchange for a lump sum payment now. However, because these payments are not part of compensation for a personal injury, you should consult an independent tax adviser to discuss any tax consequences.

  • How long will it take to convert my structured settlement payments into a lump sum payment?

    Because each transaction is unique and is dependant on court approval in their individual jurisdiction, an exact timeline for completion of the transaction is not possible. However, typically sales transactions are completed and funded with four to six weeks. The majority of this time is dependant on obtaining the required court hearing date. Because we are constantly striving for TOTAL customer satisfaction and because we are aware of how important your money is to you, we work diligently to quickly file the necessary court documents, obtain your hearing date and ultimately obtain for you your LUMP SUM PAYMENT.

  • If I sell all or part of my structured settlement payments, what will it cost me?

    The expenses, costs and attorneys fees associated with selling your payments for a lump sum cash payment are covered by Catalina Funding. You are not responsible for payment of these costs. Rather you receive the exact LUMP SUM PAYMENT as provided to you. Catalina will never charge you any hidden fees.

  • How much money will I get if I sell my structured settlement payments?

    Catalina Funding works diligently to keep its costs low thereby maximizing our ability to offer you the most money possible in return for your structured settlement payments. In addition, because of our vast experience with a number of industry investors, we are in an excellent position to offer you the most in return for structured settlement payments. You can always rely on Catalina Funding to be competitive with all of the other companies within the industry.

  • How will I be paid for the sale of my structured settlement payments?

    You can be paid by check payable to you or by wire transfer. The choice is yours to make.

  • Are there tax consequences if I sell my structured settlement or annuity payments?

    Although we can not give you legal advice, the Internal Revenue Service has ruled that where a claimant (i.e. you) assigns periodic payments due to be received under a settlement agreement in exchange for a lump sum, the lump sum remains tax-free.As part of the Tax Relief Act of 2001(H.R. 2884) signed by President George W. Bush on January 22, 2002, individuals who must sell their structured settlement payments to meet unplanned financial needs are protected. This legislation made it mandatory for individuals to seek court approval when they sell their structured settlement payments, and works in conjunction with state laws directing how these types of transactions will be completed. In addition to benefitting and protecting the individuals, it also makes clear that annuity providers will suffer no tax consequences as a result of these transactions. The legislation state that annuity owners and providers do not now, nor have they ever owed, taxes as a result of these transactions.

  • What is a qualified assignment?

    In a personal injury case, the defendant typically settled your case in exchange for a structured settlement. The defendant in this claim or its insurance company may have then transferred its obligation to make future payments to you through a “qualified assignment.” This is usually done by the defendant by assigning its obligation to make these payments to you to a secure and experienced financial institution, such as a life insurance or annuity company. By assigning this obligation to such a company, it provides the injury victim with strong financial security and allows the defendant to close its books on the case. This process relieves the defendant of further responsibility for the payments and now places that responsibility on the life insurance or annuity company.To protect the public, Congress specified (in IRC Section 130) the requirements to establish a qualified assignment:

    • The assignee assumes the liability from the defendant
    • Both the victim and the defendant agree that the payment schedule cannot be “accelerated, deferred, increased, or decreased”,The payment stream may be excluded from the recipient’s gross income for tax purposes;
    • The injury must be a physical sickness or injury; and
    • A highly secure funding asset, such as an annuity or U.S. government bond, must be used to fund the payments

DISCLAIMER: These questions and answers are provided solely for informational purposes and are NOT to be construed as specific legal advice. Please consult an attorney or other professional for any legal or tax questions you may have pertaining to your individual structured settlement, or the selling thereof.