Do you have a structured settlement hearing coming up or are you considering selling your structured settlement payments and want to know what to expect or how to prepare? Below we will give you some tips on what to expect and how to prepare for the structured settlement hearing.
What to Expect at the Structured Settlement Hearing?
In order for you to sell your structured settlement payments you must get court approval. The structured settlement protection act requires that each person selling their structured settlement payments get approval from a judge. The judge is tasked with determining that the transaction is in your “Best Interest”. The best interest standard is typically attributed to children, however regardless of your age, as a person selling structured settlement payments, the judge will use the same standard for you. What is the best interest standard? In general, the judge will look at your transaction and make sure that this transaction will improve your situation, it is a good deal and that the transaction won’t negatively affect your family’s future.
For example, if your monthly annuity payments are your only source of income and you are trying to sell all of those payments, then the judge may not approve the transaction. If you sell all of your payments and you are not able to work then the judge may be concerned about how you will take care of yourself down the road. While you may consider selling all of your payments as a good move for your family, the judge may not agree. How can you decide what a judge would approve? Give us a call or request more information here and we can help you answer this question. Our extensive experience getting structured settlement transactions approved allows us to answer this question.
Will selling structured settlement payments improve your situation?
Will selling your structured settlement payments improve your situation? It all depends on how you will use the funds. We have seen approvals on transactions for a lot of different reasons. Here are a few of the reasons others have used for selling payments at their structured settlement hearing:
- Buying a home
- Buying a car
- Paying off debt
- Going to school
- Starting a business
- Paying legal costs
It is important that regardless of how you plan to use the funds, that you come prepared to the hearing. For example, if you plan to buy a home and you are using the funds for a down-payment, then come to the hearing with the listing of the home you want to buy and a pre-approval letter from a mortgage lender. This shows the judge that you have really thought through purchasing this home. Contact us today and we can help you decide whether your use of the money now would get approved.
How to Know Whether You Are Getting a Good Deal?
Another consideration for the judge at the structured settlement hearing is whether you are receiving a good deal. Getting a good deal takes into account what you are selling, when the payments are due and the rate you are receiving. There are companies that are known for charging very high rates for structured settlement payments. Some structured settlement companies charge rates as high as 20 – 30%. This is extremely high and is not a good deal. If you are getting quoted in the 20% range, you should consider that a very bad deal. Mainstreet Funding provides some of the best rates in the industry and consistently provides the best rates, which means a lot more money for you. Feel free to contact one of our structured settlement specialist for a free quote and get a great deal today.
Will Selling the Structured Settlement Payments Affect Your Future?
Finally, the judge will look at whether selling your payments will negatively affect your future. Selling your payments might cause you to not be able to pay your bills in the future. No one wants that to happen. Some people, who have sold in the past, have said that they want to sell their payments to start a business so they don’t need the future payments. This seems reasonable, however, the judge will consider at the structured settlement hearing whether there is a chance that the business would not succeed. If for some reason the business failed, how would you cover bills in the future? If you are using the payments to cover living expenses now or in the future, the judge may deny the transaction due to a concern for your future. There are options to help solve these issues that we can discuss with you prior to going to the structured settlement hearing.
If you are looking to sell your structured settlement contact us as we will get you a great deal and help you prepare for the hearing so you can get approved. Contact us at 1-877-919-8003 today for your free consultation.