Can you borrow against a structured settlement

With a lump-sum settlement, you receive all your money at once, concluding the case. With a structured settlement, you receive a series of payments, typically stretching out over years.

Sometimes, people with structured settlements find themselves in need of an infusion of a greater amount of cash than the immediate settlement payments will provide. They may want an advance on their future payments. Interested in selling all or part of your structured settlement payments? Get Your Free Quote There are a few different approaches you may consider. The words used to describe these transactions are often misused. The law makes some options unavailable.

And others can be expensive. When you use property as collateral for a loan, you are allowing the lender to seize the property to satisfy your obligation if you fail to repay the loan. In short, you may not use a structured settlement as collateral for a loan.

Banks generally have no desire to participate in that process. In addition, because of their favorable tax treatment, structured settlements may not legally be used as collateral for loans. So if you needed to get a mortgage, for example, you may get documentation from your structured settlement administrator to show the income you will be receiving from your structured settlement. You could also show bank statements where your structured settlement payments are deposited.

Handling financial obligations this way will provide the cash you need while also ensuring that you have future payments in place. So, put the idea of taking out a loan to bed. Free Quote! Contact Us Loans vs. Selling Your Structured Settlement Payments You can sell your payments to get cash in a large structured settlement lump sum instead of deciding to borrow loan money that you have to pay back later.

Consider Other Resources First Finally, consider looking for alternative sources for the cash you need before you commit to selling your settlement. Talk to a Lawyer Need a lawyer? Start here. Practice Area Please select Zip Code. How it Works Briefly tell us about your case Provide your contact information Choose attorneys to contact you.

Dealing with Debt and Creditors. Dealing with Debt. Debt Relief and Debt Settlement Lawyers. Creditor Lawsuits. Debt Settlement. Debt Collection Tactics. Managing Credit Card Debt. Your lawyer can tell you all the relevant regulations. Is it common? What was their experience? Are there any lenders you should watch out for? These are all valid and pertinent questions. Your lawyer can help you parse through different loan agreements and help you spot any hidden or otherwise unreasonable fees.

The Value of Your Claim Always ask your attorney how much your claim is worth. The value of your claim will end up dictating the amount of money you can borrow, so it helps to have a ballpark estimate beforehand.

Always keep in mind that any estimate is just an estimate. If your case is likely to lose, your lawyer will know and tell you that your loan may not get approval. If you find yourself in this situation, make sure you verify with your attorney that it is worth the time and effort to fight for your claim. Ready to Apply? We offer all our clients three separate guarantees: Lowest possible rates in the industry;Approval of your loan application within 24 hours; andNever pay us a penny if you lose your case.

With this guarantee backing all our lawsuit funding, you can rest assured that you are getting the best service that the settlement funding industry has to offer. At Ally Lawsuit Loans we strive to ensure that all of our prospective clients have as much information about lawsuit loans and pre-settlement funding as possible.

Time and time again, we see that our happiest clients are those that fully understand lawsuit loans before they take one out. These clients leave happier because they did not run into any surprises in the lending process. One of the most common and important questions that we field has to do with the nature of lawsuit loans.

Many people wonder, Is legal funding a loan? Why or why not? The answer to this question is yes, but with a caveat. Yes, lawsuit loans are loans, but they differ from traditional loans in one key area: collateral. Our team put together this informative blog to help explain this answer further. How Does Legal Finance Work?

There are quite a few different monikers for lawsuit loans. Legal financing, pre-settlement funding, and lawsuit funding are all acceptable ways of describing lawsuit loans and the industry surrounding them. As noted earlier, legal funding is by all definitions, a type of loan. One party borrows money from another with the intention of paying them back. But then what happens? What happens if a borrower defaults?