If you are looking into selling your structured settlement in Arkansas, you are probably weighing whether a lump sum makes more sense than waiting years for monthly payments. That is exactly the kind of decision we help people work through every day. We have helped customers across Arkansas sell their payments and walk away with more cash than they expected.
Arkansas requires court approval for every structured settlement transfer. A judge reviews the deal and confirms it is in your best interest before anything moves forward. CSF handles the entire court filing and approval process. You do not pay out of pocket for any of it.
Arkansas's structured settlement transfers are governed by Ark. Code Ann. §§ 23-81-701 through 23-81-707. All transfers must be approved by a Circuit Court judge who determines the transaction is in your best interest.
Key requirement: Written responses from interested parties must be filed within 20 days of service, longer than most states' 15-day response period
Independent professional advice: Arkansas law requires that you be advised of your right to seek independent professional advice regarding the legal, tax, and financial implications of the transfer. You may choose to consult an advisor of your own choosing or waive this right in writing.
Arkansas law will not let a court order the annuity company to split a single monthly payment between you and the buyer. Under Ark. Code Ann. § 23-81-705(3), neither the annuity issuer nor the structured settlement obligor can be required to divide a periodic payment between a payee and a transferee. You can still sell part of what you are owed in Arkansas. The transfer has to be built so the annuity company is never asked to cut one check into two.
The typical timeline for selling structured settlement payments in Arkansas is 30–45 days from the time you accept an offer to receiving your lump sum. We see most Arkansas customers close within that window. Here is what the process includes:
- Preparing and filing the transfer petition with the Circuit Court
- Serving notice to all interested parties (the annuity issuer, your attorney, and any dependents)
- Waiting for the mandatory notice period
- Attending the court hearing (CSF handles the legal presentation)
- Receiving your funds after court approval
Need cash sooner? CSF offers cash advances of up to $1,500 upon signing your transfer agreement, before court approval. Advances can be released the same day you sign through DocuSign or a notary. Have questions? Call us at (800) 317-3769. That gets you a direct line to our team, not a call center.
When reviewing a structured settlement transfer in Arkansas, the judge will evaluate several factors to ensure the transaction is in your best interest:
- Financial need: Why you need the lump sum and how you plan to use it
- Alternative resources: Whether you have other income or assets available
- Dependents: Whether the transfer could negatively impact your dependents
- Terms of the deal: Whether the discount rate and net amount are fair and reasonable
- Understanding: Whether you fully understand what you're giving up and what you'll receive
This sounds more involved than it actually is. CSF prepares everything for the hearing, and most Arkansas court hearings take about 20 minutes. The judge may ask you a few questions directly, but our attorney handles the legal presentation.
Arkansas appellate courts shape how transfer applications are decided in the Circuit Court. The decisions below are part of how we prepare every Arkansas petition, and they affect what your judge can and cannot do at your hearing.
Metropolitan Life Insurance Co. v. B.J.L.Y., LLC
2016 Ark. App. 201, 489 S.W.3d 210 · Court of Appeals of Arkansas, Division IV · decided April 13, 2016
Facts
Lisa Broadaway received a structured settlement from a wrongful death case involving her father. Liberty Mutual funded it by paying MetLife Tower Resources Group, which bought an annuity from Metropolitan Life. The plan paid her two lump sums plus monthly payments of $1,378 running from 2021 through 2051, increasing 3% a year. In December 2014 she agreed to sell 120 monthly payments of $300 each for $11,000, money she testified she wanted for the startup costs of adopting three children from foster care. Because her actual monthly payment was $1,378, the sale covered only part of each month's check. J.G. Wentworth Originations assigned the contract to B.J.L.Y., LLC, which petitioned the Pulaski County Circuit Court. Metropolitan and MetLife objected. The circuit court approved the transfer anyway.
The court's holding
The Court of Appeals reversed on two points. First, the annuity issuer and the structured settlement obligor are "interested parties" under Ark. Code Ann. § 23-81-702(6), and § 23-81-706(b) entitles an interested party to oppose a transfer application, so Metropolitan and MetLife had standing to object and to appeal. Second, and as a matter of first impression, the order violated Ark. Code Ann. § 23-81-705(3), which says neither the annuity issuer nor the obligor "may be required to divide any periodic payment between the payee and any transferee or assignee." The order approved a transfer of $300 out of a $1,378 monthly payment, directed the companies to deliver the transferred payments to the buyer, and changed the beneficiary for those payments. That required the issuer to split each monthly check. The court did not reach the anti-assignment argument or whether the sale was in Lisa's best interest.
What this means if you're selling in Arkansas
You can still sell part of your payments in Arkansas. What this case says is that the deal has to be built so the annuity company is never ordered to cut one monthly check into two pieces. That makes the structure of the petition matter as much as the price, and it is the kind of detail that does not show up until a transfer is already in front of a judge.
The other half of the ruling is about who gets a say. In Arkansas the annuity issuer and the settlement obligor are interested parties. They get notice of your petition, they can object, and this case shows they can appeal an approval and win. We see those objections most often when the paperwork asks the issuer to do something the statute does not allow. We build Arkansas petitions expecting the issuer and the obligor to read them closely.
If you are looking at an Arkansas offer, ask the buyer how they intend to structure a partial sale before you sign anything. Then call us at (800) 317-3769 and compare. Get quotes from two or three companies. We say that because we know what happens when people compare.
Structured settlement payments received for personal physical injuries are generally excluded from federal income tax under IRC Section 104(a)(2). When you sell those payments for a lump sum, the tax treatment of the proceeds may differ. For details on how the IRS treats structured settlement income, see IRS Publication 4345 (opens in a new tab). CSF recommends consulting a tax professional before selling your payments.
You do not have to sell all of your payments. Most of our Arkansas customers sell only what they need and keep the rest. Here are the three ways to structure a deal:
- Sell specific payments: Sell a defined number of future payments while keeping the rest
- Sell a portion of each payment: Receive a lump sum now while still getting reduced payments going forward
- Sell all payments: Convert your entire structured settlement into a single lump sum
A partial sale is the most common choice we see. It gives you the cash you need now while preserving long-term income. CSF will walk you through all three options during your free quote so you can pick the one that fits.
Before you pick one, it helps to see what the money actually looks like. We break down how much cash you can get for structured settlement payments and what moves an offer up or down.
Arkansas residents have a few different buyers to choose from. Most are direct funders that quote and close their own deals; a few are brokers that pass your information through to other companies. The pricing differences between buyers on the same payment stream routinely run into five figures, which is why we tell every customer to compare written quotes from at least two or three before signing. Our comparison of the top structured settlement buyers covers BBB ratings, funding speed, transparency on the discount rate, and which buyers operate as direct funders versus brokers.
Get quotes from at least two or three companies before you decide. We say that because we know what happens when people compare. They usually come back to us.
- We will not be beat on price. If you receive another offer, contact us and give us the chance to beat it. Not a penny less.
- Arkansas court experience: we have handled transfers in Arkansas and know the local process
- Cash advances available: get up to $1,500 upon signing, before court approval. Advances can be released the same day you sign
- Life contingent expertise: we specialize in buying life contingent payments that other companies will not touch
- Free, no-obligation quotes: call (800) 317-3769 or request a quote online
