A honest structured settlement annuity payment purchaser must be found.

Find out how long the company or broker has been in the structured settlement industry. Given the level of difficulty in the industry, the company or broker should have a solid background.

Go to your local Department of Consumer Affairs to see if there are any lawsuits being filed against the company or broker buying your settlement.

Talk at length with the company or broker, ask him / her questions and get a feel for how knowledgeable they are. Trust your gut feeling! Steer clear of those who promise much more money or can get it faster than others. If it sounds too good to be true, then it is.

When will I get my money?

It's going to take a minimum of 1 and a half months to 4 months. Anyone saying less time is not to be trusted.

1. You have to go to court in your state to have the judge approve you selling your payments. If you don't get a court approval you pay a 40% tax. To get this approval can take up to 4 months.

2. The Insurance Company ? This includes both the issuer and the owner of the annuity. These things do not happen overnight. It takes time when dealing with companies.

3. What kind of payments do you have (quarterly, semi, annual, or are they a lump sum)? Different funding companies have their own requirements and it's critical for your broker to know these requirements. Do your homework on the company or broker you choose - you will get your money faster and with a lot less hassle.

4. Its good to have an A rated Insurance Company holding your annuity. Selling lower rated companies annuity payments, will get paid less money. Investors are looking for the safest investment for their money.

5. Copy of the annuity, the settlement agreement and release, photo ID, recent payment check , application, any child support payments out standing and ect. are what are required. You get the idea of why you need someone who knows what they are doing.

What will Cashing Out Cost Me? Most likely you are going to be some what disappointed in the amount you receive. Total up all the remaining payments and know that cashing out will offer you much less than that. They based the structured settlement on a certain amount of money put into an annuity and then that principal amount, plus interest paid out, equaled the settlement amount. Consider other options before selling your payments.

You have decided to sell your structured settlement and some questions to ask yourself. What about taxes? As of January 23, 2002 a new law says no tax liability for selling a structured settlement.

When selling your structured settlement, think about selling only a portion that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell a structured settlement payment in the future.

Just keep in mind that the settlement was meant to be dispersed over time and selling the structured settlement may result in financial problems down the road.