Structured Settlement Buyouts

Written By: author image Bara Goldberg
author image Bara Goldberg
Bara Goldberg - Amanda Dobanton Esq. is a General Counsel for Fairfield Funding. She has been crucial to the growth of Fairfield Funding for the past 9 years. Prior to Fairfield, she interned at a law firm in Gwinnett County. Ms. Dobanton received a B.S. in History and Political Science from Brenau University and went on to obtain her Juris Doctorate Degree from Atlanta’s John Marshall Law School. Amanda is currently serving on the Board for the National Association of Settlement Purchasers. Amanda is a seasoned expert in the structured settlement and annuity field.

A structured settlement  provides regular payments to a claimant as part of a legal settlement, often in personal injury or wrongful death cases. 

As per the periodic payment settlement act of 1982 and Section 104(a) of the Internal Revenue Code, the payments from a structured settlement annuity are 100% tax-free. 

While structured settlements offer long-term financial stability, some recipients may need immediate access to a larger sum of money. In such cases, selling your structured settlement payments also known as a structured settlement buyout can be a viable option.

If you’re too receiving structured settlement payments but need immediate access to a larger sum of cash, Fairfield Funding can help you. We specialize in structured settlement buyouts, providing you with a lump sum payment in exchange for your future structured settlement payments!

What is a structured settlement buyout?

A structured settlement buyout involves selling some or all of your future payments to a third-party company, known as a factoring company, in exchange for a lump sum of cash. This process allows you to access a larger portion of your settlement money upfront, giving you the flexibility to address pressing financial needs or invest in opportunities that can improve your quality of life.

How Does The Structured Settlement Buyout Process Work?

  • Getting a quote: Start by contacting a structured settlement buyer like Fairfield Funding to request a free, no-obligation quote. Provide details about your structured settlement, including the payment amount, frequency, and duration.
  • Comparing offers: Obtain quotes from multiple buyers to ensure you’re getting the best deal. Consider factors such as the discount rate, fees, and customer service when comparing offers.
  • Accepting an offer: Once you’ve found the best offer, accept it and sign the necessary documents to initiate the buyout process.
  • Court approval: The Structured Settlement Protection Act (SSPA) of 1982 states that any Structured settlement buyout In the United States must obtain a court approval to ensure the transaction is in your best interest. Your chosen buyer will handle the legal paperwork and guide you through the court approval process.
  • Receiving funds: After the court approves the transaction, you’ll receive your lump sum payment from the buyer, either through direct deposit, a wire transfer, or a check.

Why People Sell Structured Settlement Payments?

There are various reasons why you might consider selling your structured settlement periodic payments to settlement purchasers, including:

  • Paying off high-interest debt, such as credit card balances or personal loans
  • Buying a home or making a down payment on a property
  • Starting or investing in a business venture
  • Funding your education or your children’s education
  • Covering unexpected medical expenses or emergency costs
  • Making a large purchase, such as a car or home improvements

How To Choose A Good Structured Settlement Buyer

When selecting a structured settlement buyer, consider the following factors to choose the best Factoring Company:

  • Experience and reputation: Look for a buyer with a proven track record of success and positive customer reviews.
  • Better Business Bureau rating: Check the buyer’s rating with the Better Business Bureau to gauge their commitment to customer satisfaction and ethical practices.
  • Discount rate and fees: Compare discount rates and fees among multiple buyers to ensure you’re getting the best value for your structured payments. Be wary of hidden fees that can reduce your payout.
  • Customer service and support: Choose a buyer that offers exceptional customer service and support throughout the buyout process, answering your questions and addressing your concerns promptly.
  • Speed of the process: Consider how quickly the buyer can complete the buyout process, as some companies may be able to expedite the process and provide you with funds sooner.
  • Cash advances: Some buyers, like Fairfield Funding, offer immediate cash advances up to $5,000 while your buyout is pending court approval, providing you with quick financial relief.

How Working With Fairfield Funding Will Benefit You?

At Fairfield Funding, we pride ourselves on offering the best structured settlement buyout experience in the industry. Here’s what sets us apart:

Best price guarantee: We offer a price match guarantee, ensuring you receive the highest payout for your structured settlement annuities. If we can’t beat a competitor’s offer, we’ll pay you $1,000.

Experienced legal team: Our in-house legal team specializes in expediting the structured settlement buyout process, ensuring a smooth and efficient experience for our clients.

Exceptional customer service: We’re dedicated to providing the highest level of customer service, offering personalized support and guidance throughout the buyout process.

Cash advances up to $5,000: We understand that financial emergencies can’t always wait. That’s why we offer cash advances up to $5,000 while your buyout is pending court approval, providing you with immediate access to funds when you need them most.

Versatile payment options: In addition to structured settlements, we also purchase other annuity payments and lottery winnings, giving you more opportunities to access your money on your terms.

What Is A Discount Rate?

A discount rate is the rate used to determine the present value of your future structured settlement payments. It accounts for the time value of money, as a dollar today is worth more than a dollar in the future due to inflation and potential investment opportunities.

Average discount rates in the industry

Discount rates can vary among structured settlement buyers, but the average rate typically falls between 9% and 18%. Being the best structured settlement company at Fairfield Funding, we offer the most competitive discount rates in the industry, ensuring our clients receive the highest possible payout for their structured settlement payments.

Factors that influence discount rates

Several factors can influence the discount rate applied to your structured settlement buyout, including:

  • Current market interest rates
  • The payment amount and frequency of your structured settlement
  • The remaining duration of your payment stream
  • The financial strength of the life insurance company responsible for your structured settlement payments

Hidden fees to watch out for

Be cautious of structured settlement buyers that charge hidden fees, as they can significantly reduce your final payout. Some common fees to watch out for include:

  • Application fees
  • Processing fees
  • Legal fees
  • Underwriting fees

At Fairfield Funding, we believe in transparency and never charge hidden fees. We’ll provide you with a clear, itemized quote that outlines exactly what you can expect to receive from your structured settlement buyout.

Selling Structured Settlements: Pros and Cons

As with any financial decision, selling your structured settlement payments comes with both advantages and disadvantages.

Pros

  • Access to a lump sum of cash: Selling your structured settlement payments provides you with immediate access to a larger sum of money, allowing you to address pressing financial needs or invest in opportunities that can improve your quality of life.
  • Ability to meet current financial obligations: If you’re facing unexpected expenses, such as medical bills or home repairs, a structured settlement buyout can provide the funds you need to cover these costs without falling into debt.
  • Potential for better investment opportunities: If you have a solid financial plan and investment strategy, selling your structured settlement payments may allow you to invest in higher-yielding opportunities that can grow your wealth over time.

Cons

  • Reduced overall payout: When you sell your structured settlement payments, you’ll typically receive less than the total value of your remaining payments due to the application of a discount rate. However, for many people, the immediate benefits of a lump sum payment outweigh the long-term reduction in total payout.
  • Potential tax implications: While structured settlement payments are typically tax-free, selling your payments may have tax implications. It’s essential to consult with a tax professional to understand how a structured settlement buyout may impact your tax obligations.
  • Long-term financial impact: Selling your structured settlement payments means forgoing a guaranteed, long-term income stream. Before proceeding with a buyout, it’s crucial to consider your future financial needs and ensure that you have a plan in place to manage your lump sum payment responsibly.

Step-By-Step: How To Sell Your Structured Settlement To Fairfield Funding?

Selling your structured settlement payment rights to Fairfield Funding is easy:

  • Request a free quote: Contact our team by phone or through our website to request a free, no-obligation quote. We’ll ask for some basic information about your structured settlement to provide you with an accurate estimate of your potential payout.
  • Gather required documents: To initiate the buyout process, we’ll need copies of your structured settlement agreement, annuity policy, and other relevant documents. Our team will guide you through the process of gathering these materials.
  • Understand the buyout process: Once you accept our offer, we’ll work with you to complete the necessary paperwork and guide you through the court approval process. Our experienced legal team will handle the legalities, keeping you informed every step of the way.
  • Receive your funds: After the court approves your structured settlement buyout, we’ll disburse your funds through your preferred method, whether it’s direct deposit, a wire transfer, or a check.

Don’t just take our word for it – here’s what some of our satisfied customers have to say:

Fairfield Funding made the process of selling my structured settlement so easy. They were professional, responsive, and got me the money I needed quickly. I couldn’t be happier with my experience.” – Jennifer S., California

I shopped around for the best deal on my structured settlement buyout, and Fairfield Funding blew the competition away. Not only did they offer the highest payout, but their customer service was exceptional. I highly recommend them.” – Mark T., Florida

Conclusion

We understand that structured settlement buyout is a significant decision, and we’re here to support you every step of the way. With our competitive discount rates, exceptional customer service, and commitment to transparency, Fairfield Funding is the industry-leading structured settlement buyer you can trust!

Contact us today to request a free structured settlement quote and learn more about us!

FAQs

The duration of the buyout process can vary depending on factors such as the complexity of your case and the court’s schedule. On average, the process takes between 45 and 90 days from start to finish.

Yes, you have the option to sell all or just a portion of your structured settlement payments. Fairfield Funding offers flexible solutions to meet your unique financial needs.

While structured settlement payments are typically tax-free, selling your payments may have tax implications. We recommend consulting with a tax professional to understand how a buyout may impact your tax obligations.

At Fairfield Funding, we offer a price match guarantee. If you receive a higher offer from a competitor, we’ll match it. If we can’t, we’ll pay you $1,000. We’re committed to ensuring you receive the highest possible payout for your structured settlement.

Yes, in addition to purchasing structured settlement payments, annuity payments, and lottery winnings, Fairfield Funding also provides pre settlement funding and lawsuit loans. 

Pre-settlement funding offers a cash advance to  plaintiff while their legal case is still pending. In exchange, the plaintiff agrees to pay back the advance, plus fees and interest, from their future monthly payment(s). 

author avatar
Bara Goldberg Finance Writer
Bara Goldberg - Amanda Dobanton Esq. is a General Counsel for Fairfield Funding. She has been crucial to the growth of Fairfield Funding for the past 9 years. Prior to Fairfield, she interned at a law firm in Gwinnett County. Ms. Dobanton received a B.S. in History and Political Science from Brenau University and went on to obtain her Juris Doctorate Degree from Atlanta’s John Marshall Law School. Amanda is currently serving on the Board for the National Association of Settlement Purchasers. Amanda is a seasoned expert in the structured settlement and annuity field.

Bara Goldberg

Amanda Dobanton Esq. is a General Counsel for Fairfield Funding. She has been crucial to the growth of Fairfield Funding for the past 9 years. Prior to Fairfield, she interned at a law firm in Gwinnett County. Ms. Dobanton received a B.S. in History and Political Science from Brenau University and went on to obtain her Juris Doctorate Degree from Atlanta’s John Marshall Law School. Amanda is currently serving on the Board for the National Association of Settlement Purchasers. Amanda is a seasoned expert in the structured settlement and annuity field.

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