Structured Settlement FAQ

Frequently Asked Questions

  1. Are there legal concerns regarding selling my settlement payments?
  2. Yes and no. The court must agree that the purchase agreement is fair and in your best interest. There are no other legal concerns regarding selling your settlement payments. In 2001, Internal Revenue Code section 5891 was signed into law, permitting these transactions. In addition, any money coming from a pain and suffering settlement is tax-exempt.

  3. Why is the lump sum amount less than the total of my future payments?
  4. It is true that the further in the future you are expecting to receive a sum of money, the less it is worth today. This is due to inflation; inflation makes the value of your payments shrink in coming years. Similarly, a state lottery might offer a lump sum option instead of the usual 20-30 year annuity payout. If the winner elects to receive the lump sum, the amount received is far less – typically about one-half the advertised prize amount – because the advertised amount take inflation and interest not yet earned into account.

    If you choose to use Rapid Cash for a structured settlement buyout, you get to decide now what to do with your money, before inflation can deflate its value.

  5. Must I sell all of my payments or can I keep some and still receive money now?
  6. A partial buyout is absolutely an option. We will carefully help evaluate your needs to determine how much of your structured settlement you should sell. We want to build a transaction for you that provides the most possible flexibility.

  7. How long does it take and what is the process?
  8. You can typically receive payments within 30-120 days of signing a contract (including the court approval process), although completion times vary. If necessary, Rapid Cash Funding can arrange for financing in advance of the final sale. We understand how important your money is to you.