I Have a Structured Settlement and Need Cash Now – Start Here
If you have a structured settlement and need cash now, this neutral guide shows your main options – from selling all or part of the payments to comparing lump-sum quotes.
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"I Need Cash Now" – What Are My Options?
- Sell all payments. Trade the full stream for one lump-sum (requires court approval).
- Sell a portion. Keep future income while unlocking some cash.
- Advance loan. Short-term cash against your next few payments (often higher cost).
Typical Cash‑Out Discount Rates
| Present Value of Payments | Typical Lump‑Sum Offer | Effective Discount Rate |
|---|---|---|
| $25,000 | $15,000 – $17,000 | 8% – 10% |
| $50,000 | $30,000 – $34,000 | 7% – 9% |
| $100,000 | $65,000 – $72,000 | 6% – 8% |
Source: Compilation of public court filings and Consumer Finance Protection Bureau guidance (links below).
How the Cash‑Out Process Works (6 Steps)
- Get multiple quotes. Request written offers from at least three licensed buyers.
- Compare discount rates & fees. Look at the true APR, not just the lump‑sum number.
- Choose an offer & sign a purchase agreement. Read every clause; you can walk away before court approval.
- Court review. A judge assesses whether the sale is in your best interest (required in all 50 states).
- Insurance company acknowledgment. The annuity issuer is notified to redirect payments.
- Receive your lump‑sum. Funds typically arrive by wire transfer within 3–5 business days of final approval.
Dig Deeper
- Lump-Sum Quote Calculator
- Partial-vs-Full Sale Calculator
- Nationwide Discount-Rate Benchmark
- Printable Offer Checklist
- Court-Approval Step-by-Step
- Discount Rates Explained
- Top Myths About Selling
- Pre-Settlement Loan vs. Sale
- Unranked Buyer Directory
- Inheritance Advance Guide
- Invoice vs. Settlement Factoring
Frequently Asked Questions
Is it legal to sell your structured‑settlement payments?
Yes. Every U.S. state permits the sale as long as a judge determines the transfer is in your best interest under the state Structured Settlement Protection Act.
How long does the court‑approval process take?
Usually 30‑45 days, though timing can vary by state docket and paperwork completeness.
What discount rate should I expect?
Most reputable buyers quote an effective discount rate between 6% and 10%. Rates above 12% may indicate the offer is not competitive.
Will I owe taxes on the lump‑sum?
Under IRS §104(a)(2), proceeds from a settlement for personal‑injury damages are generally tax‑free, but always confirm with a qualified tax professional.
Can I get cash now for my structured-settlement payments?
Yes. Licensed buyers may exchange all or part of future payments for an immediate lump sum once a judge approves the transfer.
How fast can I receive funds after I agree to sell?
Most sellers receive a wire transfer within 3–5 business days after court approval, though timing varies by state docket.