How to Sell Future Structured Settlement Payments
Updated June 2026 · 11 min read · Reviewed by SettlementDecisions Editorial Team
You can sell future structured settlement payments for a lump sum in 6 steps: confirm eligibility, choose full or partial sale, get 3+ quotes, review rates and fees, obtain court approval under 26 U.S.C. §5891, and receive funding. The process takes 45–90 days and requires a judge to find the transfer is in your best interest.
Are you receiving or scheduled to receive structured settlement payments?
6 Steps to Sell Your Future Payments
Confirm you are receiving or scheduled to receive payments
You must have a finalized structured settlement with payments currently being paid or contractually scheduled. Pre-settlement cases do not qualify. Gather your settlement agreement showing payment amounts, dates, and the issuing insurance company.
Decide full sale vs. partial sale
A full sale transfers all remaining payments. A partial sale transfers only a portion — e.g., the next 48 months or 50% of each payment for a set period. Partial sales preserve long-term income and often receive easier court approval.
Get and compare quotes from 3+ buyers
Contact at least 3 licensed factoring companies. Request written quotes stating the discount rate, net lump sum, and all fees. Comparing is the single most effective way to increase your payout — buyers who know they’re competing offer better rates.
Review discount rate and all fees in writing
The discount rate (typically 9–18%) determines your lump-sum amount. Ask each buyer to confirm their rate AND any additional charges (court fees, processing fees, broker fees) in writing. Compare net dollar amounts, not advertised rates alone.
Court approval: petition, hearing, judge’s order
Under 26 U.S.C. §5891 and your state’s Structured Settlement Protection Act, a judge must approve the transfer. The buyer files the petition. The judge must find the sale is in your best interest considering your dependents’ welfare. You may attend a brief hearing.
Receive your lump-sum funding
Once the court issues a qualified order, the buyer processes funding — typically within 3–5 business days. Total timeline from signing to cash in hand: 45–90 days, with most time spent on court scheduling.
How Much Will I Get? Worked Example
Selling 60 future monthly payments of $2,500 ($150,000 face value):
| Discount Rate | Lump Sum | % Received |
|---|---|---|
| 9% | ~$120,600 | 80.4% |
| 12% | ~$112,300 | 74.9% |
| 15% | ~$105,200 | 70.1% |
| 18% | ~$98,800 | 65.9% |
Difference between best and worst rate: $21,800 for the same payments. Get multiple quotes.
Risks & Downsides to Consider
You receive less than face value — the discount is the cost of getting money now instead of waiting.
Payments sold are gone permanently — this is not reversible after court approval.
45–90 day timeline — not a quick-cash solution for emergencies within days.
Court can deny — if the judge finds it's not in your best interest, the transfer won't proceed.
Licensed Buyers of Future Payments
Frequently Asked Questions
Related Tools & Guides
Ready to Sell Your Future Payments?
Get competing quotes from licensed buyers. Start Step 3 now — free, no obligation.
Get My Free Quotes →