Top Myths About Selling Structured Settlements

Separating fact from fiction about selling structured-settlement payments.

Myth: Selling is illegal or unethical

Fact: Selling is legal in all 50 states under Structured Settlement Protection Acts. Courts review each sale to ensure it's in the seller's best interest.

Myth: You'll lose all your future income

Fact: You can sell just a portion of your payments, keeping some future income while getting cash now.

Myth: The process takes months

Fact: Most sales complete in 30-45 days from start to funding, though timing varies by state.

Myth: You'll owe taxes on the lump sum

Fact: Proceeds from personal-injury settlements remain tax-free under IRS §104(a)(2).

Myth: All buyers offer the same rates

Fact: Rates vary significantly. Always get multiple quotes to compare.

Myth: You can't back out once you sign

Fact: You can walk away anytime before court approval.