FAQ’s
What is a structured settlement?
A structured settlement is a term that generally refers to a deferred payment obligation resulting from the settlement of a personal injury lawsuit. Typically, the defendant’s insurance company guarantees the future payments by purchasing an annuity that will specifically name the claimant as the payee. The annuity payments are tax free to the claimant since they are being made due to the claimant’s personal injuries.
Is it legal to sell my structured settlement?
Yes. Although there may be language in your settlement agreement which states you cannot assign or accelerate the payments, most states have adopted specific laws that support the right of annuitants to assign the payments.
Why do annuitants sell their future payments?
There are several reasons for a person to sell their payments such as, new business opportunities, purchasing a home for a growing family, medical emergencies, pay off high interest debt, or any other financial emergency requiring additional funds that may not otherwise be available as a result of poor credit.
How much will I receive for my future payments?
The value of your future payments depends on many variables, such as the amount and due date of the payment; the risk the issuer may not make the future payment, and the current interest rates. Your Covered Bridge Capital Account Representatives will work to get you the most for your payments.
How long will it take to receive my lump sum?
Although the process varies depending on the state, a typical transaction will take around 60 days to complete.
What documents will I need?
Although there are exceptions we normally require copy of the annuity contract, settlement agreement and proof of identification.
What is the process for selling my structured settlement payments?
Most states have adopted a Structured Settlement Protection Act that empowers consumers to sell their structured settlement payments after a simple court proceeding. Covered Bridge Capital will initiate the court proceeding and process the documentation.
Will I be required to show up in court?
The requirements of each state and county can vary. Your Account Representative will assist you with this process and answer any questions regarding your transaction.
How will I be paid?
Cashiers Check or Direct Account Transfer. You tell us.
What are the tax consequences of selling payments?
Though we cannot offer tax advice, the Internal Revenue Service has issued a private ruling which confirmed that an individual’s sale of structured settlement payments would not create a taxable transaction. H.R. 2884 confirms this ruling.
How do I get started?
Call Covered Bridge Capital Settlement Funding at 1-877 386-3377 or email us at info@cbcsettlementfunding.com
Testimonial
Frank S. - "I had the pleasure of speaking with a representative at CBC. My brother-in-law presented my family with a business opportunity we did not want to let pass by. I received several cash now options that were created by CBC using my future payments stemming from an accident. My family and I decided on a specific lump sum of money that made the most sense for us. NOW WE ARE IN BUSINESS."
Call 1-877-386-3377 or fill out our contact form.
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