Structured Settlement FAQs

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Structured Settlement FAQs

Even though they are common, many individuals do not completely understand what structured settlements are. The following are some questions customers ask us quite frequently. While we are happy to assist you and answer your questions over the phone or e mail, the answers below may provide you with the answers you are looking for and speed up the approval process.
Structured Settlement FAQs

Structured Settlement FAQs

What is a Structured Settlement?

Also referred to as periodic payment judgments or insurance settlements, structured settlements are payments made to a plaintiff by an insurance company or defendant. After a judgment is awarded to a plaintiff, instead of paying the full dollar amount up front, many plaintiffs agree to accept payments over a period of time.

A structured settlement is a legal contract and an asset to the plaintiff and the person receiving the settlement (the plaintiff) may sell it if they so desire. In order to protect the consumer, the sale of a structured settlement is always reviewed by the court and subject to a waiting period.

Why do people sell a Structured Settlement?

While a structured settlement has some tax advantages, many individuals receiving them are in need of cash now. Selling all or part of your structured settlement puts a chunk of cash in your pocket, which enables the plaintiff to pay down debts, put money in the bank, or simply put the lawsuit behind them.
Why should I sell my structured settlement to Funds4Claims when there are so many other companies out there buying for my business?
We will offer you the most money at the lowest rates with no obligations and no hidden fees. Additionally, our customer service is unmatched and, because we are a preferred lender for many of the top law firms in the country, we are trustworthy.

What types of structured settlement payments may I sell?

There are four primary categories which may be sold:

  • Settlements derived from a settled lawsuit.
  • Payouts from insurance companies
  • Payments that are guaranteed or life contingent
  • Payments that are not the result of a worker’s compensation claim

I have a pension. May I sell that?

No. By law pensions cannot be sold. Other structured payment types that cannot be sold are:

  • Mortgages
  • Other disability payments
  • Payments due to a minor child
  • Pre-settlement cases
  • Social security payments
  • TIAA CREF payments
  • VA disability or pension
  • Workers compensation payments

And a few others. To inquire about your specific situation, please contact us directly.

What is a Structured Settlement Annuity?

Tax-free payments made to you (or a beneficiary) by an insurance company following the conclusion of a lawsuit. These payments are mandated by the court and failure to pay them could result in serious legal ramifications.

Is it legal for you to sell your Structured Settlement Payments?

Most states allow for the sale of structured settlements provided the following conditions are met:

  1. 1. The seller must be given documents or information with full disclosure regarding the financial information.
  2. 2. There is a mandatory waiting period before the sale can be finalized and funded—usually thirty days. This is for the protection of the seller. The seller may back out any time before the sale is finalized.
  3. 3. In most states, the potential seller must solicit independent financial advice prior to selling their structured settlement.
  4. 4. Following a court hearing, a judge issues a court order approving or denying the sale of the structured settlement.

Can I sell just some of my Structured Settlement Payments or do I have to sell them all?
It is up to you and what best fits your needs. You may sell the all of the payments or just some of them.

I’ve sold a portion of my payments already. Can I pursue the sale of additional payments?
Yes.

What are the tax consequences on the money I receive from the sale of my Structured Settlement Payments?

We highly recommend that you seek counsel from a lawyer or tax expert to inquire about the tax ramifications of selling your structured settlement in your jurisdcition, but, in most cases, there will be no change.

Is the transaction risk free?
Absolutely. We never charge any application fees and you are free to back out any time before the sale is finalized without penalty.

Once I accept an offer, how quickly will I be paid?

All in all, the process typically takes between thirty and forty-five days to complete. The process of selling your structured settlement goes as follows:

  1. 1. Within 24 hours of applying, you will obtain sale documents via FED EX. If you opt to receive them via e mail or text, the turnaround time is even faster.
  2. 2. The court reviews the sale and, in most states, implements a thirty day waiting period before the sale is finalized.
  3. 3. Once the sale is finalized and approved, we wire the money to your bank account or send a check within 24 hours.

Ready To Sell Your Structured Settlement

If you are ready to sell your structured settlement, whether in its entirety or in part, fill out a fast and easy online funding application or call Funds4Claims at 855.386.3744. We look forward to meeting your legal financing needs

Structured Settlement by States

Funds4Claims provides exemplary customer service and affordable Structured Settlements and lawsuit funding in almost every state in the United States and parts of Canada.


The law does not allow us to provide legal funding in the states of Colorado, Maryland and North Carolina. Each state has its own regulations regarding lawsuit funding. To find out the law in your state, contact us today. We would be happy to answer any questions you might have.