Reasons to Sell Your Structured Settlement


If you’re familiar with structured settlements, you may already know you’re within your rights to sell your settlement. Selling a settlement, however, is dependent on a judge’s approval. Your reason for selling must be compelling, as judges approve settlement sales based on whether they’re in your best interest.

What are some compelling reasons for selling your structured settlement for cash? Find out the six common reasons for selling your structured settlement payments below.

1. You’re Buying a Home

Purchasing a home or paying off your mortgage are both valid reasons for selling your structured settlement payment. You and your lawyer will still need to demonstrate that either reason is in your best interest.

Focus on conveying the long-term benefits of selling your structured settlement for a home. Consider factors such as the home’s distance from your workplace, its heating and cooling costs and access to certain school districts for your children. A change in your relationships, such as a divorce, could also support your wish to sell your structured settlement payments.

If you want to pay off your mortgage, your reasons to sell are likely different. The accident that led to the settlement, for example, may have left you unable to work and meet your mortgage payments. You may also want to sell your structured settlement to save money and prevent you or your family from paying interest over time.

2. You’re Starting or Expanding a Business

Starting or growing a business — especially if it’s your or your family’s sole source of income — are common reasons judges approve the sale of structured settlements.

Because judges evaluate whether the sale is in your personal best interest, bring evidence that supports your potential business’ success or reasons for expanding. If you’re beginning or growing a company, for example, include a business plan with estimated costs for the judge to view.

Prepare to answer any questions from the judge regarding your experience operating a business or skill within the market your business will occupy. If the judge feels you lack the experience to own and manage a business successfully or are being influenced by friends or family to start one, it’ll likely impact their ruling.

3. You’re Paying Off Your College Tuition or Loans

Paying your college tuition upfront, without a loan, or paying off your college loans, are both valid reasons to sell your structured settlement for cash.

Many structured settlements result from injuries, which can leave you at home and unable to work. Inform the judge of your situation, but also provide financial statements from your bank and loan organization. A note from your doctor detailing your existing health conditions can also demonstrate to a judge that you must sell your structured settlement payments so you don’t default on your college loan.

A case can also be made for selling your structured settlement to continue or start your college education. A lump sum from your settlement can prevent you from taking out a loan. You can then earn a degree, without debt, that’ll benefit you or your family by raising your potential income. Provide evidence such as your acceptance letter and the college’s tuition rates.

4. You’re Upgrading or Repairing Your Vehicle

Upgrading or repairing your vehicle is often a more challenging case, but aren’t uncommon when selling a few structured settlement payments versus the entire payment.

If you’re repairing your vehicle, be sure to include a repair estimate from your mechanic. Support your case by including financial statements from your bank or credit card company that demonstrate you’re unable to afford the repairs without substantial risk.

To sell structured settlement payments for an upgraded or new vehicle is often more tedious. What’s important is to show that you’re upgrading by necessity — not choice. It’s also important to indicate your intention to purchase a car that’s reasonably priced.

Even though the structured settlement is yours, judges are bound to ensure that sold payments benefit you in the short and long term. Because cars lose much of their value after leaving the dealership, they’re not considered an investment, unlike your education or home.

5. You’re Paying Off Your Medical Bills

Medical bills are why many people decide to sell their structured settlement payments for cash, with many of the bills stemming from the accident that led to the settlement.

Bring your medical statements as well as your health insurance policy, if applicable, to your hearing. You may also want to include your bank statements to show you’re unable to meet your hospital’s or physician’s fees.

If your ongoing medical bills result from necessary care, such as physical therapy or other treatments, ask your doctor or therapist to write a letter explaining why you need this care to assist your case. Letters, such as these, are recommended if you’re selling your structured settlements over time to pay for medical bills, as judges examine your previous cases and reasons for selling a settlement payment before approving a sale.

6. You’re Investing Your Money

Many people consider the potential of selling their structured settlement to invest the lump sum. Judges, however, are unlikely to approve this reason if you’re planning to invest in the stock market, as it fluctuates and presents a financial risk.

If you want to sell your structured settlement for cash to invest, options are available outside the stock market. You could invest, for example, in equipment for your business that would increase your profits by allowing you to do more work or take on additional clients. Provide cost estimates for the equipment — whether it’s a computer or a forklift — and prepare to answer any questions from the judge on how it’ll benefit you or your company.

Sell Your Structured Settlement With a 24/7 Notary

Whether you’re purchasing or selling a structured settlement payment, every settlement sale requires a notary that’s there when you need them.

At Superior Notary Services, we offer 24/7 mobile notary services nationwide, providing more than 34,000 cities with assistance. Learn more about our mobile notary services for structured settlements to finish selling or purchasing a structured settlement payment.

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