Selling Structured Settlements
We represent and counsel individuals that are interested in selling a structured settlement. Selling a structured settlement in New York requires the Court’s approval. We can help you understand the benefits and consequences of selling a structured settlement. We can also help you get the Court’s approval.
Deciding Whether to Sell Your Structured Settlement
When selling a structured settlement you must consider several factors. First and foremost you need to consider your own situation and whether selling the future payment stream is right for you. You should consider not only your current financial situation but your future financial situation as well. If you are unable to work or if you need significant future medical care, you may consider not selling your payment stream. However, if you will be investing the money into real estate or another venture that might return more income or value for you than your current payment stream, then selling your payment stream might be right for you. You may also consider using the sale proceeds to pay off high interest debt, however, if the interest rate is lower than the rate used to calculate the sale of the payment stream then it might make more sense to keep the payment stream. These are general examples and your situation will need to be examined before making a final decision as to whether or not you should sell.
Is the Sale of Your Structured Settlement A Good Deal?
Importantly you should consider the discount rate that’s applied to your structured settlement. You should consider what the net present value of your payment stream is and compare it to what the buyer of the payment stream is offering. You would be surprised at the difference. Just a small change in the discount rate that’s applied to the payments and the amount of money you receive in the sale could change dramatically. Therefore be sure you shop around. Call at least three different buyers and compare the different rates and terms to be sure that you’re getting the best deal possible.
What Does the Court Consider When Reviewing A Structured Settlement Sale?
The Court will review your current situation, the sale terms and the current market conditions. The Court will also consider whether the law has been followed. For example: Have you signed a proper disclosure form? Does the agreement violate any law? Etc. It’s important to show the Court that the sale is in your best interest and the sale is in the best interest of your children if you have any. There are many other considerations. Many Court’s will question the seller to find out if they’ve been advised by a tax professional, a financial planner or an attorney. Jeffrey Shepro, P.C. can provide you with advice and counsel. Jeffrey Shepro, P.C. can help you get your sale approved. Call today, 212-575-2683.