Settlement Funding FAQ

What is a structured settlement?

A structured settlement generally refers to a deferred payment obligation resulting from the settlement of a personal injury lawsuit. Typically, the defendant’s insurance company guarantees the future payments by purchasing an annuity that will specifically name the claimant as the payee. The annuity payments are tax free to the claimant since they are being made due to the claimant’s personal injuries.

Is it legal or possible to sell my structured settlement?

Yes. Although there may be language in your settlement agreement which states you cannot assign or accelerate the payments, most states have adopted specific laws that support the right of annuitants to assign the payments.

What is the benefit for annuitants to sell their future payments?

There are several reasons for a person to sell their payments such as, new business opportunities, purchasing a home for a growing family, medical emergencies, pay off high interest debt, or any other financial emergency requiring additional funds that may not otherwise be available as a result of poor credit.

What will my future payments be?

The amount of your future payments depends on many variables, such as the due date and amount of the payment; the risk the issuer may not make the future payment, and the current interest rates. Your ALN Capital Services Representatives will work to get you the most for your payments.

How long will it take to receive the lump sum?

Although the process varies depending on the state, a typical transaction will take around 30 - 45 days to complete.

What types of documentation will be required to get started?

Although there are exceptions we normally require copy of the annuity contract, settlement agreement and proof of identification.

How do I sell my structured settlement payments, what is the process?

47 states have adopted a Structured Settlement Protection Act that empowers consumers to sell their structured settlement payments after a simple court proceeding. ALN Capital Services will initiate the court proceeding and process the documentation.

How do I know if I will be required to appear in court?

The requirements of each state and county can vary. Your Account Representative will assist you with this process and answer any questions regarding your transaction.

In what payment form will I get paid?

Cashiers Check or Direct Account Transfer. You tell us.

Are there any tax consequences of selling my payments?

Though we cannot offer tax advice, the Internal Revenue Service has issued a private ruling which confirmed that an individual’s sale of structured settlement payments would not create a taxable transaction. H.R. 2884 confirms this ruling.

How do I get started with ALN?

Call ALN Capital Services at 1-866-964-6772 or email us at info@alncaptialservices.com