Frequently Asked Questions

1. How much money can I get?
2. Can I sell a portion of my settlement payments? Can I sell more in the future?
3. What does the law say about selling your payments?
4. What about the insurance company?
5. Do I need a lawyer?
6. Why would a judge approve such transaction?
7. What about my dependents? How are they protected?
8. Will I have to be present in court?
9. What information do you need from me to get started?
10. What is the contracting process? And how long will it take?
11. When will I get my money?
12. Are there any tax consequences?
13. What happens if the Judge denies my case?
14. Can I get an advance?
15. How am I protected if Settlement Purchasers goes out of business?
16. Can this be done on worker's compensation settlements?
17. What if I know someone who has a structured settlement?

Question 1: How much money can I get?
Answer: We do everything we can to get you enough to meet your current financial needs. Our minimum funding amount is $10,000, but we can fund as much as $1,000,000 and up depending on the size of your transaction.

Question 2: Can I sell a portion of my settlement payments? Can I sell more in the future?
Answer: Yes. Settlement Purchasers normally only buys a portion of your payments to meet your current financial needs today. We know that things may change in the future and you may have the opportunity to sell additional payments a couple years down the road if the need arose.

Question 3: What does the law say about selling your payments?
Answer: Over two thirds of the states have laws that allow the sale of structured settlements and insurance payments. In addition, there is a federal law, HR 2884, which took effect on July 1, 2002, which provides a safe harbor for any individual wishing to cash in their payments. Between the state and federal laws in place, we will find a way to get you an approval.

Question 4: What about the insurance company?
Answer: Settlement Purchasers has excellent working relationships and agreements with most insurance companies that allow the transfer to get approvals much quicker. However, there are a couple insurance companies who are difficult to deal with in certain situations.

Question 5: Do I need a lawyer?
Answer: Most states give the option to seek legal, financial, and/or tax
advice before entering into a purchase and sale agreement. Some states have made this mandatory, while others require you to sign a waiver if you choose not to seek independent legal or financial advice. Settlement Purchasers encourages its clients to seek advice before asking court approval to sell their payments.

Question 6: Why would a judge approve such transactions?
Answer: Most judges carefully review each file to determine if the transaction is indeed in the client's best interest while considering the support and welfare of the seller’s dependents. Judges realize that these individuals often do not have access to traditional credit sources and the only way some of them can reach their financial goals is by selling a portion of their settlement payments. As long as the seller is an adult of sound mind, has a legitimate need for this money and can prove to the judge that selling is in the best interest of both the seller and their dependents, the judge has little reason to deny the transaction.

Question 7: What about my dependents? How are they protected?
Answer: The federal law requires that every transfer meet certain conditions. With this in place, the courts consider the support and welfare of your dependents before giving permission to transfer payments. The court confirms that the transfer is in everyone’s best interest.

Question 8: Will I have to be present in court?
Answer: Your chances of approval go up significantly if you are able to appear in court. The judge may ask you questions as to why you want this money and your presence in the room will help the judge approve your transaction.

Question 9: What information do you need from me to get started?
Answer: We just need to know the state you reside in, your insurance company and your payments in order to provide you a free, no obligation quote. Once you are ready to proceed, we will need copies of you r settlement agreement and annuity policy.

Question 10: What is the contracting process? And how long will it take?
Answer: By law, we will first send you a disclosure that will specify exactly what we are buying and how much you will get. This is sent out as soon as you agree to do the transaction. Then a contract will follow within a day or two. Once you sign and return it to us, we will begin the court order process. The exact time can vary depending on your state and insurance company, so it can range between 45- 90 days.

Question 11: When will I get my money?
Answer: You will receive funds between 5 to 10 working days from the time the order is approved.

Question 12: Are there any tax consequences?
Answer: No. The new law, HR 2884, specifically states that neither the issuers, owners nor annuitants will suffer tax consequences as a result of these transfers.

Question 13: What happens if the Judge denies my case?
Answer: Settlement Purchasers will do everything we can to prevent a denial in court. If for some reason it is denied, we will review and take the appropriate steps to get it approved. You will not be responsible for any costs if the transaction is denied in court by the judge.

Question 14: Can I get an advance?
Answer: In some situations we can provide an advance to assist you while we are waiting on the court order to be approved.

Question 15: How am I protected if Settlement Purchasers goes out of business?
Answer: Since 1989, Settlement Purchasers has maintained the highest level of ethical standards in the industry. We pride ourselves in taking care of the customer first. We are licensed, insured, bonded; and all transactions are backed by a legal court order.

Question 16: Can this be done on worker’s compensation settlements?
Answer: No. Only personal injury settlements that qualify under IRC 104(a)(2) can be transferred under the federal and state transfer acts.

Question 17: What if I know someone who has a structured settlement?
Answer: Feel free to contact us and let us know who they are. We will contact them and see if they are interested in selling their payments. If they do sell their payments, we will pay you a finder fee when it closes. These fees can be anywhere from $100 - $5,000.