Frequently Asked Questions

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Structured Settlement FAQ

What is a structured settlement?
Structured settlements are commonly used in settling personal injury or malpractice lawsuits. A structured settlement is a financial tool that allows court-awarded compensation to be paid in installments over time, rather than up front in one lump sum. These installments may be paid over a fixed period of time or continuously during the recipient’s lifetime. Structured settlements can vary widely and be paid several different ways.

Do I have to sell my entire structured settlement payment stream?
No. In many cases, partial payments are the best option for Rising Capital Associates customers. We help our customers carefully evaluate their needs to determine how much of their structured settlement payment stream they should sell, in order to achieve their goals today and in the future.

I have sold part of my structured settlement payment stream before. Can you help me sell more?
Absolutely. Rising Capital Associates has a team of representatives dedicated to serving customers who have previously done business with us. Even if you have completed a transaction with another factoring company, we’d be happy to help you with your next transfer process.

Will selling my structured settlement payments for a lump sum have any tax penalties?
The federal government has stated any money coming from a pain and suffering settlement as tax exempt. As long as the sale of your structured settlement payment stream complies with applicable federal and state laws, you should not incur tax penalties. However, you should always consult with an independent tax ad visor regarding possible tax implications of your sale.

Will I be punished by my insurance company for selling my structured payments? What if my agreement states that this type of transaction is not allowed?
Absolutely not. Some policies state that this type of transaction is not allowed or that the payments are not assignable. Fortunately, in 2001, President Bush signed into law Internal Revenue Code section 5891, permitting these transactions.

Will I need to appear in court?
All transfers require court approval and the majority of jurisdictions will require you to appear in court for best practices. This is for your own protection, to make sure you understand all the details of the sale and to ensure the transfer is in your best interest.

How long does it take to receive my money after court approval?
Provided the judge signs the court order approving the transaction, and we are able to obtain a version of the executed court order, we will fund you within two business days of court approval.

What expenses will I have to pay to sell my structured settlement?
None. Rising Capital Associates has no hidden fees. We pay for all costs associated with the transaction.

How will I be paid?
Any way you want. We can send a wire into your bank account or we can send a check as well.

Glossary of Terms
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Statutes Of Limitation

Need information on a State’s Statutes of Limitation? CLICK HERE for more information on each State.

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