Settlement Decisions
Updated October 25, 2026 · 25 min read

Sell structured settlement payments without leaving money behind

Rates, the court process and real payout math in one place. The single biggest lever you control is how many buyers you compare, so this guide shows you how to do that well.

MFMed F., Settlement AnalystResearched against each state's statute and the math
Calculate my payoutGet free quotes
  • No signup for tools
  • No upfront cost
  • Court-approved sales only

Quick answer

Yes, you can sell. A judge must approve the sale, it takes about 45–90 days, and buyers price payments at 9–18% discount rates. That usually means roughly 35–80% of your remaining payments in cash, depending on how many years are left.

$2,500/mo for 15 years ($450,000 face value)

Best quote · 9%$246,484
First offer · 15%$178,624

≈ $67,859 more from the better quote

45–90

Days to cash

Court approval is required

3–5

Quotes to compare

Before you sign anything

9–18%

Typical discount rates

Lower means more cash

$0

Upfront cost

Fees come out of proceeds

On this page13 sections

The process

How selling a structured settlement works

Selling is a court-supervised process. 49 states and Washington, D.C. have a Structured Settlement Protection Act that requires a judge to approve the sale and confirm it is in your best interest.

  1. 1

    Request written quotes

    Days 1–3Ask 3–5 buyers for a written quote that shows the discount rate and every fee. Get quotes
  2. 2

    Pick the best net offer

    Days 3–7Compare the cash you actually receive after fees, not the headline number. Analyze an offer
  3. 3

    Sign the purchase agreement

    Days 7–10You receive a disclosure statement with the discount rate, fees and net amount in writing.
  4. 4

    Cooling-off period

    Days 10–30Most states give you a mandatory waiting period (often 10–20 days) to change your mind.
  5. 5

    Court petition is filed

    Days 30–45The buyer files the transfer petition in your county. Check approval odds
  6. 6

    Judge reviews the sale

    Days 45–75A short hearing, often virtual, where the judge decides if the sale is in your best interest.
  7. 7

    Cash is wired to you

    Days 75–90Funds usually arrive within a few business days of the signed court order.

2026 rates

Discount rate chart: what each rate pays you

The discount rate decides how much cash you get. Here is what each rate means for $2,500 a month with 15 years left ($450,000 in future payments), using the standard present value formula.

9%
$246,48455%Strong
11%
$219,95549%Good
13%
$197,59144%Fair
15%
$178,62440%Weak
18%
$155,23934%Walk away

Moving from 13% to 9% on this stream is worth $48,893.

Run your own numbers

Worked example

Real payout example: $2,500 a month

Same payments, same timeline. Only the rate changes.

Monthly payment

$2,500

Years remaining

15

Future payments

$450,000

Strong · 9%

$246,484

55% of future payments

Good · 11%

$219,955

49% of future payments

Fair · 13%

$197,591

44% of future payments

Walk away · 18%

$155,239

34% of future payments

Gap between a 9% and an 18% offer: $91,245

Calculate my settlement

Negotiation

Why comparing quotes matters more than anything else

First offers are rarely a buyer's best rate. Written competing quotes are the only leverage that reliably moves it.

Get every quote in writing

Ask for the discount rate, every fee and the net amount you will receive. A verbal number is not an offer.

Compare net cash, not headlines

A higher lump sum can hide bigger fees. Rank offers by what lands in your account.

Ask within the same two weeks

Rates move with the market. Quotes gathered together are directly comparable.

Already have an offer?

Check the rate and fees before you sign anything.

Analyze my offer

Timing

Selling payments you receive now vs. future payments

Buyers price every payment by how long they wait for it. That one rule explains most of the difference between offers.

Payments already coming in

Monthly or annual payments you receive today are the most common thing people sell. Near-term payments are discounted the least, so selling the next few years usually gets the most cash per dollar sold.

Payments that start later

Deferred payments, or lump sums scheduled years from now, can be sold too. They are worth noticeably less today because the buyer waits longer, so check the effective rate carefully.

The buyer adds up the present value of each payment you sell. Use the calculator to see how the number changes when you sell fewer years.

Options

Full sale vs. partial sale

Judges often look more favorably on a partial sale because you keep part of your long-term income. Sell only what you need; you cannot buy payments back later.

1

Full sale

Every remaining payment

Best when: You need the largest possible lump sum and have other income.

2

A set number of payments

For example, the next 3–5 years

Best when: You need a specific amount now and want payments to resume later.

3

Part of each payment

A slice of every check, such as $500 of $1,500

Best when: You want cash now but still rely on a monthly check.

4

Lump sums only

One or more scheduled lump-sum payments

Best when: Your regular income must stay untouched.

Be careful

When you should not sell

Selling is permanent. These are the situations where keeping your payments is usually the better call.

  • The payments cover rent, food or medical care and you have no other dependable income.

  • You receive SSI, Medicaid or other means-tested benefits. A lump sum can affect eligibility. Ask a benefits attorney first.

  • A cheaper option exists. A short-term need may cost less to solve with a payment plan, a hardship program or family help.

  • The buyer asks for money upfront or rushes you. Legitimate buyers take their costs out of the proceeds and give you time to read the disclosure.

  • You only have one quote. Without a comparison you cannot tell whether the rate is fair.

Not sure? Try the sell or keep tool or read the decision framework.

Your state

State-by-state selling guides

Every state has its own Protection Act with its own waiting periods, court procedures and disclosure rules.

Use the state law explorer or see all states.

Go deeper

Guide library

Detailed guides for every part of the decision.

Buyers

Buyers worth putting in your comparison

Include several buyers in your comparison. Note that JG Wentworth, Peachtree and Stone Street share a parent company, so add at least one unaffiliated buyer. See all companies

FAQ

Frequently asked questions

Can I sell my structured settlement?
Yes. You can sell all or part of your structured settlement payments, but a judge must approve the transfer first. Every sale goes through your state's Structured Settlement Protection Act process, which typically takes 45–90 days from signing to funding.
How much will I receive for my structured settlement?
It depends on the discount rate and how long your payments run. At 9–14%, a 10-year stream typically pays about 55–65% of its face value in cash; longer streams pay a smaller share. Comparing several written quotes is the most reliable way to raise your number.
How long does it take to sell a structured settlement?
Usually 45–90 days. Most of that time is the court process: the buyer files a petition, the court schedules a hearing, and funds are released after the judge signs the order.
Can I sell payments I am already receiving?
Yes. Payments that are already coming in are the most common kind to sell. You can sell the next few years of payments, part of each payment, or everything that remains.
Can I sell payments that have not started yet?
Yes, but deferred payments are worth less today because the buyer waits longer to be paid. The further away a payment is, the bigger the discount.
Can I sell only part of my structured settlement?
Yes. Partial sales let you raise a specific amount of cash and keep the rest of your income. You can sell a set number of payments, a portion of each payment, or only certain lump-sum payments.
Is selling a structured settlement taxable?
If your settlement came from a physical injury or illness, the lump sum is generally tax-free under IRC Section 104(a)(2). Settlements for other claims may be taxed differently, so confirm your situation with a tax professional.
Do I have to go to court to sell?
Yes. Federal law (IRC Section 5891) puts a 40% excise tax on buyers who skip a qualified court order, so every legitimate sale is approved by a judge. In some states you may not need to attend the hearing in person.

Free tools

Your settlement decision toolkit

Every tool is free and gives instant results. No signup.

This guide explains how structured settlement sales work. It is not financial, legal or tax advice. Payout examples use the standard present value formula and are illustrations, not offers. Talk to a qualified financial advisor, attorney or tax professional about your own situation before you sell. When you request quotes, we may be paid for connecting you with buyers.

See what your settlement is worth

Run the numbers yourself, then compare written offers. Free and no obligation.

Calculate my payoutGet free quotes