Is selling your structured settlement worth it?The Minneapolis Star Tribune analyzed data on cases where structured settlement recipients sold future settlement payments to factoring companies. The paper looked at more than 1,200 sales from 2000 to October 2021 (when the findings were published). Here’s what it uncovered:

  • Fewer than 20 people received cash equal to at least 80% of their settlement’s future payments.
  • More than 40 people received cash equal to 20% or less of their future payments.
  • On average, sellers received 40% of their future payments in cash from the buyer.
  • A third of the sellers received court approval to conduct more than one sale, with the terms usually worse on later deals.

I suspect these numbers are similar to those in states across the country including California (statistics are not easily obtained). While states have given judges greater authority to block these sales when not in the best interest of the injured party, many sales are still being approved that shortchange the seller.

To read the Star Tribune report and learn about the experiences of injured parties who sold a portion of the settlement payments, click here.

If you’d like to discuss the pros and cons of selling future settlement payments, give me a call or email.

Pat Farber