Can You Speed up a Structured Settlement Payout?


You won your court case and are awarded a significant amount of money, but you have to receive payments through a structured settlement.

Instead of receiving a lump sum, you’ll receive periodic payments throughout the lifetime of the settlement. This benefits those who need a regular stream of income, but what happens if you need cash now?

Can you speed up your structured settlement payout? There is a way! Keep reading to learn more.

How to Speed up a Structured Settlement Payout

The only way to speed up a structured settlement payout is to sell your future payments for a one-time lump sum payment.

Structured settlements are periodic payments that provide stability and a stream of income that you can depend on. However, you don’t have access to the pool of money which payments are drawn from.

This becomes a problem if you have a large expense that your structured settlement payments can’t cover.

Selling Structured Settlement Payouts

If you decide to sell your structured settlement payments, you don’t have to sell all of them.

You can sell payments for a period of time. For example, you can decide to sell the payments coming within the next six months. After that, payments will resume as normal.

You can also sell a fraction of your payments over a period of time. Let’s say you sell 50% of each payment for the next year which results in a reduced income stream plus a lump sum payment.

Keep in mind that selling these payments means you’ll receive less money than the total dollar amount of the payments. This is how structured settlement companies make money.

Find a reputable business like We Pay More Funding that will offer you a fair amount for your payments.

Payout scheduling for a structured settlement you sell will be decided by a judge.

Cashing Out: The Pros and Cons

Speeding up a structured settlement payout through a sale might seem like your best option but there are valid reasons for and against it. It’s important to know both the pros and cons before making a decision.

The advantages of selling all or part of your structured settlement include:

  • Immediate access to a larger amount of cash
  • Aids in a financial crisis
  • Pays off large expenses (buying a home, car, or paying medical bills)

The cons of going through the sale process are:

  • Collecting less money overall for the life of the settlement
  • Losing all or part of guaranteed income
  • Forfeiting future payments

There are other options that can help manage expenses that you should consider before choosing to forgo future payments. Checking with your bank for an unsecured loan or contacting creditors are common methods.

Should You Cash Out Your Structured Settlement?

Impatience is not a good reason to cash out a structured settlement payout. Most choosing to cash out their structured settlement do so for emergency funds or to make a large life purchase.

The only way to speed up the payout is through selling, but you won’t receive the full amount.

Consider this guide before making a decision and check back on our website for more financial tips.


Leave a Reply

About Marc Wallace

I'm never too busy to share my passion. I've created this page to help people learn more about business, finance and real estate. Besides all the serious stuff, I'm also a man that values family and healthy relationships. I hope you find my content insightful.

Recent Posts