Most of us dream of winning the Powerball lottery. The issue comes when the payouts are given. People who win Powerball or other similar jackpots, do not get it all at once. They get one decent sized check and then 30 annual payments. There are people who like this arrangement. It makes them feel good to know that they have an income for the next three decades. This is not an arrangement that works for every lottery winner, however. Some people prefer to get more of that cash sooner than later. For them, it makes more sense to look into selling their lottery payments.
How Do You Sell Lottery Payments?
Selling lottery payments or selling an annuity settlement is a little more complicated than selling a car or even a house. There are federal and state laws that govern these kinds of sales. Those laws are meant to protect people from selling when they really should not. There are unscrupulous companies out there who are all too willing to take advantage of people to get their lottery payments.
So, the first thing you need to do is educate yourself on the process and take a good look at your current finances. You will need a good reason to sell because you will have to defend your decision in court. There are a lot of good reasons that people looking into selling annuity payments and lottery payments. Pull your credit report, look at what your debts are and talk to a financial advisor you really trust. Decide if selling is in your and your family’s best interests.
Decide Why You Are Selling Your Lottery Payments.
There are a lot of good reasons to sell. Every situation is different. Here are some of the reasons judge’s approve sales of lottery payments and annuities.
- You want to avoid bankruptcy. Americans have tons of debt. Nearly 20% of all Americans are in what is called “debt hardship.” Credit card debt, which most people in the United States find very embarrassing, is a huge problem. Other kinds of debt include medical debt and student loan debt. In February 2015, more than three thousand people filed for bankruptcy every day. I
- You want to start your own business. New businesses often fail because they do not have access to start up capital. If you sell your lottery payments, you can put the cash into a new business venture.
- You want to pay for someone to go to college. College is great to increase a person’s earnings potential but it is expensive. It is hard or impossible to get financial aid if you have lottery payments coming in. Selling your structured settlements can give you what you need to pay for college for yourself or someone else.
Get Quotes for Your Lottery Payments:
You would not sell your car with the first offer you get, why would you do something different for your lottery payments? Talk to reputable companies who purchase lottery payments and see what their offers are. If you have a financial advisor, you should talk to them about the different companies you are talking to about selling your lottery payments.
Be meticulous with the fine print. This is not the time to gloss over the fine print in an agreement. You need to make sure you understand everything in the agreement you make to sell your lottery payments. If the company you are working with will not take the time to explain everything and to answer your questions, you should go to a different company. Reputable companies want you to be happy with the outcome. Just keep that in mind when you talk to different buyers.
Go to court. You have to go before a judge to have your sale approved. Again, they want to make sure you understand all of the ramifications of selling your lottery payments. You will end up getting less money in the long run. There are also tax implications when you sell your lottery payments. Most importantly, the judge wants to know that you have a good reason for selling your lottery payments.
Once your sale has been approved, it should take between 45 and 60 days to get your cash.