Settlement Decisions
Court approval check · 8 questions

How will a judge see your transfer?

Every sale needs a judge’s approval. Answer eight questions about the factors courts actually weigh, and see your readiness score, your timeline and what to fix before the hearing.

Med F., Settlement AnalystUpdated October 29, 2026

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Question 1 of 813%

Which state do you live in?

The petition is filed in your state's court.

Common reasons

Why petitions get denied or reduced

No clear need

The money is for discretionary spending.

Unfair terms

A very high discount rate or unexplained fees.

Repeat sales

Several transfers in a short time.

Dependents at risk

Selling would leave children or a spouse without support.

Learn more about the court approval process, check your state’s rules, or read 7 questions judges ask.

Quick answer

What does a judge look for before approving a structured settlement sale?

Under state Structured Settlement Protection Acts, the judge must find that the sale is in your best interest, taking into account the welfare and support of any dependents. The judge also confirms you were advised in writing to get independent professional advice and that the transfer doesn’t break any law.

Judges look closely at why you’re selling, whether you’ve sold payments before, and whether the discount rate is reasonable. Most transfers take roughly 30 to 90 days from filing to the hearing.

FAQ

Frequently asked questions

Why does a judge have to approve the sale?
Every state's Structured Settlement Protection Act requires court approval, and federal law (IRC Section 5891) puts a 40% excise tax on buyers who skip a qualified court order. The judge's job is to decide whether the sale is in your best interest, taking your dependents into account.
What do judges look at?
Mainly why you need the money, whether the discount rate and fees are reasonable, how much you're selling, whether your dependents are protected, how many times you've sold before, and whether you've had independent professional advice.
How often are petitions denied?
Most petitions that reach a hearing are approved, but denials do happen, especially for repeat sellers, very high discount rates, or sales without a clear need. Some judges approve a smaller sale than requested.
How long does court approval take?
Typically 45 to 90 days from signing to funding. The notice period, the court's calendar and whether you must attend in person all affect the timing.
Do I have to attend the hearing?
It depends on your state and the judge. Many hearings are short and some allow remote attendance. The buyer's attorney usually handles the filing.
How accurate is this tool?
It's a readiness check, not a prediction. It scores the same factors judges weigh, so you can see what to fix before a petition is filed. Every court and judge is different.

Keep going

Other free tools

State law explorerYour state's protection act and court process.
Eligibility checkerCan your payment type be sold?
Tax checkerWhich parts of your settlement are taxable.
Document checklistThe papers a buyer and court will ask for.

This readiness check is for education only. It is not legal advice and does not predict what any court will decide. Talk to a licensed attorney in your state about your petition.