"There are hundreds of companies willing to transfer your structured settlement into their name, but not all of them are equally good choices. It's important to compare settlement companies carefully before deciding on one."

Structured Settlement Transfer

Selling a structured settlement for cash is also known as a structured settlement transfer. This is because when you sell your structured settlement payments you are transferring the right to future payments to a third-party buyer.

When someone is awarded a structured settlement there are a number of reasons why they may be interested in relinquishing it in exchange for a lump sum. However, structured settlements transfers are by no means simple, and can be limited or restricted based on a number of factors, including the laws in the state in which you live. Because of the legal nature of structured settlement transfers, it's imperative to speak with an attorney or financial advisor familiar with structured settlement laws in your state before proceeding with a transfer.

Below are some common facts and myths about transferring a structured settlement.

Myths and Facts about Structured Settlement Transfers

Myth: Once you agree to a structured settlement payment plan, it's impossible to change your mind.

Fact: Although in some states it is difficult to transfer a structured settlement, most states allow settlement transfers provided you follow a protocol, usually involving a court order.

Myth: One structured settlement company is the same as the next.

Fact: There are hundreds of companies willing to transfer your structured settlement into their name, but not all of them are equally good choices. It's important to compare settlement companies carefully before deciding on one.

Myth: Transferring my structured settlement is an all-or-nothing proposition.

Fact: Most settlement companies are more than happy to buy some, most or all of your future payments. Selling just a portion of your future payments can guarantee both cash upfront and a future income stream.

Myth: When you transfer a structured settlement to a third party, you will receive a lump sum equal to the total of your future payments.

Fact: If you think you're going to get the full future value of your settlement, you're in for a disappointing surprise. Because of an economic concept known as "present value"- as well as the fact that structured settlement companies are in business to make a profit - your lump sum payment will be far less than the total of your future payments.

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Now that you're armed with structured settlement transfer information, continue to the next section to find a buyer for your structured settlement.

Learn More about Cash for Structured Settlement Payments at Info.com Topics.