Top Reasons Why A Judge Denies Sale Of Structured Settlement

After winning a case or signing a settlement for an injury claim a plaintiff is awarded a sum. The payment may be given two ways: one lump sum of the entire amount or through a structured settlement which means the plaintiff gets their winnings over a period of time. When the winning party does not like the structured settlement terms they have the option to sell the settlement for cash, but only when a judge gives their approval.

Sadly after doing the paperwork, waiting for the court date, and going through all the legal hoops, some are denied structured settlement sale. To avoid getting denied the sale of your structured settlement, here are the most common reasons why a judge might not approve the sale:

Reason 1: Sale Is Not For the Seller’s Best Interest

The most common reason for a judge to deny the sale of a structured settlement is when the seller does not benefit from the sale enough. There are some purchasers who charge a very large amount for their services and the winner of the settlement case does not get a fair amount back. The judge is only looking out for the best interest of the seller and will not approve the sale.

Reason 2: Failure To Follow Court Procedure

A seller may be denied the sale of their structured settlement because they did not follow the proper court procedures for the sale. If a plaintiff does not consult with a lawyer and a financial adviser as the court demands their sale will most likely not be approved. Again, a judge does not approve a claim when they see that the sale is not in favor of the seller.

Reason 3: Lack Of Paperwork

A result of not consulting with a professional who knows how structured settlement sales go is passing the wrong or missing paperwork. If a seller claims that the sale of their settlement will go toward college tuition and paying off debt, they must produce papers to state that they are enrolled and that they have the capability to acquire employment in the near future. A judge who is convinced that a sale of the settlement will not create a better future of the seller will most likely deny the sale.

Reason 4: Plaintiff Cannot Manage Assets

A big reason for a denied structured settlement sale is when the winner of the case shows signs of financial irresponsibility. A person who has deplorable credit scores and has the habit of gambling, or spending too much on worthless things will be denied the sale. A person who cannot manage their financial assets will most likely squander their winnings instead of using it as an investment towards financial freedom.

The court and the judge are not out to make life more difficult for people who want to sell their structured settlements. They work and study cases to ensure that the sale is beneficial for the seller in the long run. Expecting a quick payoff will only lead to disappointment. Consult with experts at to see what the best reasons are for selling your settlement and to avoid getting denied. You can browse thru to find out more.
A judge can block the sale of a structured settlement. We list down the top reasons why the court will do such a thing at

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