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Structured Settlement

How To Get Cash for a Structured Settlement

How to Get Cash for a Structured Settlement

Reviewing the effective rate of a transaction involving the sale of a structured settlement for cash is a great place to begin if you are looking for a lump sum.  It is an important step of the process that involve getting cash for a structured settlement. While many factors exist, asking the company what the effective rate is, can be helpful start.

Of course, the effective rate is not the only element of the transaction. There are many factors to consider before you get cash for structured settlement. Some factors and financial terms may be found in the legally required disclosure statement. Disclosures can be found in the state specific structured settlement transfer act- by that we mean what is required to be disclosed to you as part of the structured settlement sale. Each state has different structured settlement sale disclosure requirements.

Simply by way of example, in Virginia, the law requires that the following be disclosed by the settlement annuity buyer:

1. The amounts and due dates of the structured settlement payments to be transferred;

2. The aggregate amount of such payments;

3. The discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the Applicable Federal Rate used in calculating such discounted present value;

4. The gross advance amount;

5. An itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements;

6. The net advance amount;

7. The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and

8. A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee.

You will see that as part of the disclosure requirements the law mandates that the settlement buyer provide you with both a “gross advance amount” and a “net advance amount”. The difference here is whether the structured settlement buyer is going to pass along any costs or fees that will be deducted from the lump sum. It is definitely an important consideration that you should look at carefully when you receive the disclosure statement if you selling structured settlement payments in Virginia.

Contact Us at Catalina Structured funding and Let Us Make You an Offer for Your Virginia Structured Settlement