Ask for an Attorney’s Help if you Sell your Structured Settlement

Selling your Structured Settlement – Obtain an Attorney’s Help

Usually, you’ll benefit if you consult with an attorney before signing a contract. Structured settlements are no exception. If you are thinking of selling your settlement payments to a buyer, then obtaining the aid of a lawyer will assist in safeguarding your rights. Show a lawyer the terms and conditions of the purchase contract so he can determine if you are obtaining a reasonable amount for the sale of your settlement payments.

Think about what you are Forfeiting

An attorney can also advise you if the reason for selling your structured settlement is worth the effort. It’s typically not advised that settlements be sold unless the recipient has incurred expenses that he cannot meet unless he has a sizeable amount of cash. Payments for structured settlements, too, are tax-free – one of the benefits you stand to lose if you sell your settlement.

Review your Alternatives

The idea of a lump sum payment may sound enticing at first, but keep in mind, that the amount of the discount and fees assessed by the factoring company buying your settlement will substantially reduce the amount of money you would obtain if you kept receiving payments. Therefore, scrutinize your options carefully. In the long run, you may be better off to rethink your decision.

When Selling May Be Advised

Most financial advisors and attorneys concur that selling a structured settlement is unwise unless you are experiencing financial problems that require an immense outlay of cash. For example, the periodic payment, whether monthly or yearly, may not be enough to handle, for instance, an accumulation of medical expenses or the monthly payments on your house, especially if you are not working.

Fully Understand what You are Signing

An attorney, then, can give you better insight as to how to proceed. If you do sign a contract, make sure you fully understand the agreement. Consult with a legal advisor before you make any type of commitment in this regard.

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