- When is the Best Time to Sell Structured Settlement Payments? - February 12, 2026
- Best FSA/HSA Sleep Products - February 3, 2026
- Best 5g Network on Prepaid - January 22, 2026
A structured settlement is a great way to provide ongoing financial support after a personal injury or other type of legal settlement.
However, many recipients find themselves needing more cash than their payments provide at the time. In certain situations, you might sell some or all of your settlement in order to get faster funds, but it’s not always wise (or possible) to do so.
Keep reading below to learn more about finding the best time to sell your structured settlement payments, as well as some common scenarios where this may be the right choice.
What Is a Structured Settlement?
If you’re reading this, you likely already have a good understanding of what a structured settlement is. But if you’re reading this in support of your loved one, here’s a quick refresher.
A structured settlement is an arrangement in which a claimant (often a victim in a personal injury case) agrees to settle the claim and receive regular, periodic payments instead of a lump sum. These types of settlements are common in large personal injury claims, and they may occur after:
- Car accidents
- Truck accidents
- Medical malpractice
- Product liability claims
- Aviation accidents
- Workplace accidents
When receiving a structured settlement, the claimant will receive regular periodic payments. In some cases, they may agree to a structured settlement instead of a lump sum payment, but often, the court might actually require a structured settlement — this is common in situations involving minor victims, ensuring that the child has financial security well into the future.
Selling Structured Payment Settlements
While structured settlement payments work great in many situations, some individuals find themselves needing more money than their payments provide. In these cases, it’s possible to sell structured payments in exchange for an immediate, lump-sum payment.
The approach you take here will depend on your specific needs and goals.
Before anything else, make sure you contact a lawyer or structured settlement consultant for professional advice. They’ll be able to get you started on the right foot and point you in the direction of a reputable company to sell through.
A good company will walk you through your future payments, interest rates, and other market conditions at play and, first and foremost, help you decide whether it’s wise to sell at all. It’s especially important here to work with a consultative company like Strategic Capital. They’re a strong choice in the industry, trusted by consultants and lawyers to work with annuitants instead of doing whatever it takes to get a quick sale. Rather than pushing for “cash now” and a full sale that cuts into your total lifetime earnings, they’ll help you secure a sale that fulfills only your immediate needs without the pressure — often encouraging only a partial sale so you hold on to as much as possible over the lifetime of the settlement.
Whichever your path, it’s important to understand that the lump sum offer will be less than the total of your future payments. That’s how these companies make their money, after all.
You’ll also need to keep in mind that you can’t just sell your payments and call it a day; you must obtain court approval in order to complete the sale. In order to determine whether the sale is in your best interest, there are several factors the judge will consider, including:
- Your need for immediate funds
- Your understanding of the details of the sale
- The discount rate
- Any potential impacts on your dependants
- Whether you have obtained independent advice
If the court finds, for example, that the fees are too high, they might deny the transaction to protect you.
In most cases, these transactions can be completed in 45 to 60 days.
When Is the Best Time to Sell My Structured Settlement Payments?
There are many reasons why you might find yourself needing to sell your structured settlement payments, including:
- Emergency Financial Needs: This could be the result of medical bills, a job loss, unexpected expenses, or other circumstances.
- Major Milestones: You may need money for purchasing a home or starting a business. Perhaps you need to pay your child’s college tuition.
- High-Interest Debt: Making a sale could help you alleviate some of the financial pressure that comes with high-interest debt.
- Changing Family Obligations: If you or your dependents’ needs change, you could be put in a difficult financial situation.
Some people suggest that you look at market timing to decide when to sell, but that’s rarely the best advice.
Instead, you should consider your circumstances, financial pressure, the interest rate environment, and court timing.
For example, suppose you have a large financial need in a few months, such as a home purchase or college tuition due date. In that case, it could make sense for you to start thinking about selling now. Remember that the process can take several weeks, so planning ahead of your life events can be crucial to having the money when you need it.
If you’re in dire financial need and are facing foreclosure, eviction, or other consequences, then you may have no choice but to move forward with a sale. Just remember that you don’t have to sell your entire settlement; you could choose to sell a specific number of payments or even a percentage of all future payments.
The interest rate environment can also play into your decision. When interest rates are high, the discount rate applied to the sale will be larger because you’re selling future payments at today’s value, and the company purchasing your payments must protect their bottom line. Conversely, when interest rates are low, you can expect to receive a larger lump sum payment.
Finally, it’s generally not a good idea to try to “time the market” when making your decision. There are so many external factors beyond your control that could affect the final lump sum amount that you receive, and since court approval can take 45–60 days, market conditions could change significantly from the time you decide to sell until the sale actually takes place.
Potential Alternatives to Selling Your Structured Settlement Payments
Depending on the amount of money you need and your credit history, one of these alternatives might be a better option than selling your structured settlement:
- Emergency Savings: If you have any money in savings, you could consider dipping into it. Again, you should consider the amount you have, the amount you need, and your potential future requirements.
- Debt Negotiation: If you need the extra cash because of high-interest or excessive debt, you may consider debt negotiation to lower your monthly payments.
- Take Out a Personal Loan: Taking a personal loan could be a way to get quick cash at a decent interest rate. This would not require any court approval, and you might be able to get the money within a day or two. Just avoid seedy lenders who take advantage of people with staggering rates.
Consider talking to an experienced financial planner or lawyer when deciding on the best strategy for your situation. While the options above might not be ideal, they could be a better solution than selling your structured settlement payments in some cases. In the end, it truly depends on your circumstances and whether or not the court would approve your request.
Get Help With Selling Your Structured Settlement Payments Today
Selling your structured settlement payments can be a tough decision, and understanding the discount rate and how it’s affected by interest rates can be complex, to say the least. This is why you should always seek professional help and not take this decision lightly.
In addition to consulting a financial planner, make sure you work with a company that will work for your best interests just as much as the judge will. Look for a partner who will hold your hand through the process, help you understand exactly how much you need, and will not pressure you into anything. That’s the best way to protect yourself, your assets, and your future.