You can sell a structured settlement in most states. The process involves selling some or all of your future payments to a factoring company for a lump sum, and it must be approved by a court under your state's structured settlement protection act. The entire process typically takes 45–90 days, and the amount you receive depends on the discount rate the buyer applies.
Can You Sell a Structured Settlement?
Yes — in most states. Every state except a handful has a structured settlement protection act that establishes a legal process for selling payment rights. The sale is not automatic: a court must review it and find that it's in your best interest.
What you can sell:
- All remaining payments (a full buyout)
- Only some payments (a partial buyout — e.g., the next 5 years)
- A single future lump sum payment
- Monthly payments for a set period
The Step-by-Step Process
Get quotes from 2–3 verified buyers
Each buyer quotes a discount rate and a lump sum for the payments you want to sell. Use our Compare tool to evaluate them side by side.
Choose which payments to sell
Decide between a full or partial sale. Courts often prefer partial sales because you keep ongoing income.
Get independent professional advice
Most states require you to receive independent legal or financial advice about the sale. The advisor cannot be the buyer's attorney.
File for court approval
The buyer (or you) files a petition with the court. The judge reviews the terms, the discount rate, and whether the sale is in your best interest.
Receive your lump sum
After the court order, the buyer funds your lump sum and the annuity issuer redirects the sold payments to the buyer.
What It Costs: Discount Rates
The cost of selling is the discount rate — the percentage the buyer keeps as profit. The higher the rate, the less cash you receive. Industry range is roughly 9%–18% for established factoring companies.
| Future payments | Discount rate | Approx. lump sum |
|---|---|---|
| $1,000/mo for 10 years ($120,000) | 10% | ~$75,000 |
| $1,000/mo for 10 years ($120,000) | 15% | ~$62,000 |
| $2,000/mo for 20 years ($480,000) | 12% | ~$230,000 |
Numbers are illustrative — actual offers depend on payment timing, your state's protection act, the buyer, and court findings. Run your own numbers with our Structured Settlement Calculator.
Before You Sell: Questions to Ask Yourself
- Do I rely on these payments for living expenses?
- Is the lump sum worth giving up guaranteed, tax-free income?
- Have I compared at least three buyers' offers?
- Is the discount rate within the 9%–18% range?
- Am I being pressured to sign quickly? (A red flag if so.)
- Have I talked to an independent advisor?
Our Best Practices guide covers the full checklist, including what to ask each buyer.
Verified Buyers in Our Directory
SettlementDirectory.net lists 61+ verified companies that buy, broker, or advise on structured settlement transactions. Each listing is checked for association membership (SSP/NSSTA), state licensing, and complaint history.
J.G. Wentworth
Major national buyer · Radnor, PA
CBC Settlement Funding
Trusted leader · Conshohocken, PA
DRB Capital LLC
Established 2011 · Delray Beach, FL
Stone Street Capital
Long-established buyer · Bethesda, MD
Frequently Asked Questions
Can I sell my structured settlement?
Yes, in most states. You can sell some or all of your future structured settlement payments to a factoring company, but the sale must be approved by a court under your state's structured settlement protection act.
How much money will I get?
You receive a lump sum equal to the present value of the payments you sell, minus the buyer's discount rate. Industry discount rates range from roughly 9% to 18%. The exact amount depends on the payment schedule, your state, and the buyer.
How long does selling take?
Typically 45–90 days from initial quote to court approval and funding, depending on the state and court calendar.
Do I need a lawyer to sell?
Most states require independent professional advice as part of the court approval process. Some buyers pay for it; some don't. Always confirm who covers the cost before signing.
Is selling my structured settlement taxable?
Sales of structured settlement payment rights are generally not taxable to the seller if the underlying payments were tax-free (i.e., from a personal physical injury or wrongful death claim). The lump sum retains the same character as the original payments. Confirm with a tax professional in your state.
Get Quotes from 3 Verified Buyers
Compare verified buyers in our directory before you commit to a sale.