Pre Settlement Loan

How to Get a Structured Settlement Loan

Getting a structured settlement loan is now possible in almost all areas in the United States. A lot of people are attracted to this kind of loan because they seek to receive compensation coming from companies or individuals after they have sustained personal injuries. Over a specific amount of time, the compensation is to be repaid in installments, depending on the stipulations of the contract. As most of these installments are often given as part of an agreement, they can also be used as collaterals if you want to apply for a loan. In you want to apply for one while relying on your annuity payment, the procedure is pretty simple.


If you want to apply for settlement loans, you need to decide, first and foremost, on the kind of settlement that you want. The most common mistake that people do is applying for a loan when the agreement clearly stated against it. A few settlement agreements contain strict clauses about financial leverages and loan disbursal using the same document as collateral. If you scrutinize your contract properly and you find out that there is no such indication, then you can be eligible for a settlement loan. In some cases, the court needs to interfere because its permission is needed. Aside from that, agreement from the defendants and insurer is also needed if you have reached an extra judicial agreement regarding your settlement.

Once you have made sure that there are no restrictions and snags, you can now begin with your application.


A financial institution or a bank will cater to your application for a settlement loan after it has evaluated the papers and scrutinized the requirements. In some cases, the processing period is three to four months. However, if you decide to sell your annuity amount, you can receive the money in a matter of 40 to 45 days. Once the application has been processed and the loan is approved, you will receive the fees. Oftentimes, it is going to be coupled with extra charges, while some jurisdictions subtract an income tax from the total amount of the loan. Depending on your own discretion, you can use the loan, whichever way you want as long as you can pay it back with annuity payments.

Difference From Settlement Sales

Before deciding on which one you really want, it would be a great idea to compare settlement agreement sales and structured settlement disbursal. If you are intent on selling your annuity, it would cost you more extra charges because of the tax deduction. If this is the case, the settlement agreement will immediately cease, and you will not anymore receive payments in the future. On the other hand, if you want a loan based on structured settlements, your initial plan will still push through, but the difference is that you need to repay the loan using your annuity.

If you cannot zero in on which one you really want, it would help if you talk to an expert or a qualified attorney who has knowledge about sales and loans of settlement agreements.

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