How to Get a Settlement Loan
If you were awarded a structured settlement and have been receiving payments, then payments should be coming in every month. But what if those payment are coming in and they aren’t covering everything? Maybe there is a need for a new car or new medical items are needed. If this be the case, then taking a loan against settlements just might be what is needed.
Here Are The Steps
To get a structured settlement loan, there are some steps that must be taken before you can just get the money. These steps must be followed and include:
- Reading the Settlement – Just because you are looking at a structured settlement loan, doesn’t mean that there might not be a clause in your settlement that prevents this from happening. Reading over the contract will help to know what can and can’t be done, and if there are any penalties or extra costs in taking a loan. Sometimes settlements are setup to where money can only be paid out in payments until a certain age. Others will allow for a loan to be taken out without negating the settlement.
- Finding a Company – One of the first things that must be done is finding a company that handles structured settlement loans. This will require some research, because not all companies are the same and each will have a different fee that is required. When doing the research, talk to friend and family about who they recommend and for what reasons. Also searching online can be a big benefit to finding the right company that will work for what you are wanting to do regarding a loan.
- Paperwork – When doing a loan, there will be a good amount of paperwork that has to be done. This is longest part of the process. The paperwork must be filed with the court system and then sent back before the next paperwork can be done. This part of the process usually takes a couple of weeks to complete.
- Court – For any structured settlement loan, it must be approved by a judge before any money can be taken out. The reason for this part of the process is so that a judge can see the reasons for the loan, make sure the company processing the loan is not taking an unfair advantage in providing the loan, and if there are any clauses in the settlement, then they will address them at this time.
- Receiving the Loan – If the judge approves of the loan, at that time the company will then either wire the money directly into your account or write out a check for the amount of the loan.
The overall time that it takes to get a structured settlement loan takes anywhere from 18 to 90 days. It is not something that can be done in a matter of days, like a traditional loan from a bank or financial institution. This is done strictly as a precaution and to make sure that the need for the loan is necessary and not just to get a lump sum of money out of the settlement.
It’s Your Money
One nice thing about a structured loan is that the money is yours to do as you wish. But remember this is a loan and must be paid back over the course of time. When considering taking a structured settlement loan, it is important to know that the amount of the loan will go against the total amount of the settlement that is remaining. This could affect the payments you receive in the future, and so this must be taken into consideration.Call Us Today
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