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.
- Settlement consultants help individuals and attorneys plan future payments. Structured settlement buyers, aka factoring companies, purchase the rights to future payments from settlement owners for a discount.
- Selling structured settlement payments allows you 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 Settlement Buyers
AnnuityFreedom.net
Phone Number: (877) 547-3672
We are a Los Angeles-based settlement buyer who purchases from people across California and across the country.
Pre Settlement Funding Companies in Los Angeles
Nova Legal Funding
11601 Wilshire Blvd Suite 410
Los Angeles, CA 90025
Phone (866) 494-0370
A pre settlement funding company that specializes in funding personal injury cases. Provides cash within 24 hours of approval (according to fundmylawsuitnow.com on July 3, 2025).
Forward Legal Funding
468 N. Camden Drive, Suite 200
Beverly Hills, CA 90210
(310) 933-5226
Reviews client applications and speaks with their attorneys to determine the value of personal injury cases. Qualified applicants generally receive $500 to $100,000 (according to forwardlegalfunding.com on July 3, 2025).
Quest Settlements
23801 Calabasas Rd, Suite 1016
Calabasas, CA 91302
High Rise
11110 Ohio Ave #207,
Los Angeles, CA 90025
Buyers in Other Cities
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.
What is a Structured Settlement?
Structured settlements are tax-free payments made on a regular basis after a lawsuit is won or settled. These future payments are essentially an annuity that is paid out over time from the annuity issuer, which is typically an insurance company or life insurance company. Typical types of lawsuits that result in structured settlements include personal injury cases, medical malpractice, and wrongful death.
Sometimes in the case of class lawsuits or lawsuits with multiple plaintiffs, a qualified settlement fund (or QSF) will be created, which is a type trust that allows for a more straightforward and organized administration of a lawsuit settlement.
You Can Sell Your Structured Settlement
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 is not necessary to retain an attorney or law firm for the sale of a structured settlement, but that choice is at the seller’s discretion.
While court approval is pending, many factoring companies will pay an advance to the seller and recoup that advance once the deal closes. This can help provide some financial relief to the seller while the sale is pending. After closing, the factoring company as the transferee will be entitled to receive the annuity payments and the seller will receive their lump sum payment.
When considering selling a structured settlement, the seller must consider all the consequences involved. For example, if they are reliant on the consistent payments to pay essential bills such as rent and utilities, then it may be risky to sell the structured settlement and risk not being able to meet their financial obligations.