1. Introduction
If you’re thinking, “I have a structured settlement but need cash now,” you’re not alone. Life happens — medical bills, job loss, urgent expenses. The good news? There are ways to access your money. The bad news? If you’re not careful, you could lose more than you bargained for.
This guide helps you understand your options clearly, make informed decisions, and avoid the biggest pitfalls in the industry.
2. What Is a Structured Settlement?
A structured settlement is a series of tax-free payments awarded after a lawsuit (e.g., personal injury). Instead of a lump sum, you’re paid over time — monthly, annually, or in custom intervals.
While it’s secure and steady, it lacks flexibility. When emergencies arise, waiting years for those funds isn’t always an option.
3. Why You Might Need Cash Now
People sell their structured settlements for many urgent reasons:
- Unexpected medical expenses
- Home or car repairs
- Debt consolidation
- Education or job retraining
- Divorce or legal fees
“I needed the money for surgery. My payments were coming in yearly, but the bills wouldn’t wait.”
These needs are valid. But before rushing, understand the costs and choices ahead.
4. Option A: Sell Your Structured Settlement
This is the most common route. A buyer (like JG Wentworth) gives you a lump sum in exchange for some or all of your future payments.
How It Works:
- You receive a quote based on the value of your payments.
- You agree to a price (called a discount rate).
- A judge must approve the transaction.
- You get paid after court approval (usually 4–8 weeks).
Pros:
- Immediate access to cash
- Tax-free lump sum
- Option to sell part, not all
Cons:
- You may lose 10% to 40% of total value
- Long-term financial impact
- Requires court approval
Typical Discount Rates:
- 8% to 18%, depending on company, market rates, and your payment terms
Example: $100,000 in future payments might yield $75,000 in cash today.
5. Option B: Cash Advance or Loan
Some companies offer advances or loans against your structured settlement.
Key Differences:
- It’s not a sale. You’re borrowing against your future payments.
- You must repay with interest.
Pros:
- Retain ownership of your settlement
- Fast access to money
Cons:
- High interest (27% to 60%)
- Can harm credit
- Risk of default or lawsuits
6. How to Choose: Sell vs Advance vs Alternatives
| Option | Pros | Cons |
|---|---|---|
| Sell | Lump sum, court oversight | Discounted value, final |
| Advance/Loan | Keep settlement, fast funding | High interest, repayment risk |
| Alternatives | Avoid fees, maintain value | May not provide enough cash |
Alternatives:
- Personal loans
- Credit counseling
- Emergency grants or nonprofit aid
- Selling only a portion
7. Who to Choose & Red Flags to Watch For
Trusted Companies:
- JG Wentworth: Most recognized, but not always highest payout
- Peachtree Financial: Known for customer service
- Fairfield Funding: Transparent process, competitive quotes
Green Flags:
- Licensed in your state
- BBB rating A or higher
- Written quotes & no-pressure sales
Red Flags:
- Aggressive calls or texts
- Refusal to share discount rate upfront
- Vague contract language
8. Real Consumer Stories
“It felt like I got 60 cents on the dollar. It helped in the short term but I lost a lot.”
“I called three companies and got three very different offers. Glad I compared.”
These stories show the value of doing your homework.
9. Legal & Regulatory Guide
Structured settlement sales are regulated under Structured Settlement Protection Acts (SSPA) in all 50 states.
What the Court Looks For:
- Is the sale in your best interest?
- Are you financially literate?
- Did you receive independent legal or financial advice?
Important Protections:
- Cooling-off period (usually 3–10 days)
- Full disclosure of terms
- Right to cancel
10. Money-Saving Tips Before You Sell
- Ask for multiple quotes
- Sell only what you need, not the full amount
- Negotiate fees and discount rates
- Consider other financing options first
- Talk to a financial advisor or attorney
11. Step-by-Step Selling Roadmap
- Gather details of your settlement payments
- Contact 3–5 companies for quotes
- Compare rates, fees, and customer reviews
- Choose the best offer and complete paperwork
- Attend a court hearing for approval
- Use your cooling-off period to double-check terms
- Receive your money (in as little as 30–45 days)
12. FAQs
Is selling a structured settlement taxable?
No, it’s generally tax-free under federal law.
Can I sell just a portion of my payments?
Yes, partial sales are common.
What if the court rejects my request?
You keep your full settlement. No penalties.
Is a loan or sale better?
Depends on urgency, credit, and your long-term goals.
13. Conclusion & Next Steps
You have options. Whether you sell your structured settlement or seek a loan, knowledge is your best protection. Don’t rush into the first offer you get.
Next Steps:
- Collect your settlement documents
- Compare multiple companies
- Consult a legal or financial advisor
With the right preparation, you can get the cash you need — without sacrificing your future.
Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice. Always consult a licensed professional before making major financial decisions.