A brief summary of how structured settlements work:
- Structured settlements are tax-free payments made on a regular basis after a lawsuit is won or settled. Personal injury, wrongful death, and medical malpractice lawsuits commonly end with structured settlements.
- Structured settlement consultants help individuals and attorneys plan future payments. Settlement buyers, aka factoring companies, purchase the rights to future payments from settlement owners for a discount.
- Selling structured settlement payments allows recipients to exchange future income for cash up front. This process involves working with a factoring company and obtaining court approval to ensure the deal is fair. Sellers should carefully consider the long-term impact before selling, especially if they rely on regular payments for essential living costs.
Structured settlements are tax-free payments made on a regular basis after a lawsuit is won or settled. Typical types of lawsuits that result in structured settlements include personal injury cases, medical malpractice, wrongful death, and workers compensation matters.
Sell Structured Settlements
There are times when the owner of a structured settlement annuity would like to sell some or all of their remaining periodic payments in exchange for a lump sum of cash. This is usually for a variety of reasons: perhaps funds are needed for an unforeseen emergency, down payment on a home, or college tuition payments. So-called “factoring companies” are in the business of purchasing structured settlement payment rights and there are many of them out there.
The sale of a structured settlement can take various forms. For example, the seller can sell all future payments to the buyer in exchange for a lump sum. Or, the seller can only sell a portion of their payments either for the remainder of all remaining payments or just for a portion of those remaining payments. Essentially, it depends on how the seller is seeking to structure the deal.
In order for a factoring company to purchase a structured settlement, they will work with the potential seller to analyze the annuity contract and gather information before providing a quote. Next, if the quote is accepted, court approval will be required before the annuity is sold — this process can take several weeks. Court approval is required so that a judge can weigh the interests of the interested parties and claimants to ensure the deal is fair and in the best interest of the seller. It may not be necessary to retain an attorney or law firm for the sale of a structured settlement, but that choice is at the seller’s discretion.
Structured Settlements Companies in Detroit
AnnuityFreedom.net
Phone Number: (877) 547-3672
While AnnuityFreedom.net is not Michigan-based, we are able to help people in Detroit, Grand Rapids, Warren, and surrounding areas who are interested in free quotes and in selling their settlement payment rights for lump sums of cash.
Arcadia Settlements Group
15224 Kercheval Avenue, Suite 200
Grosse Pointe Park, MI 48230
(313) 264-1018
Logan Settlement Services
28175 Haggerty Road
Novi, MI 48377
(248) 865-3900
Maher Financial Group, Inc.
30101 Northwestern Hwy., Ste 120
Farmington Hills, MI 48334
(248) 737-8686