Bank Statement for a Structured Settlement Sale
Selling future structured settlement payments to a factoring company for a lump sum requires court approval in most states, and the buyer verifies your payment history through bank statements showing the settlement deposits arriving on schedule. Lenders also want to see the funds are genuinely yours before finalizing the purchase. Here is how to prepare.
Key Benefits
- Confirms your settlement payments have arrived consistently as scheduled
- Documents the account receiving payments for the factoring company's review
- Supports the court petition required to approve most settlement sales
- Provides evidence for the independent professional advice disclosure
How It Works
- Step 1: Download 6 to 12 months of statements showing your settlement payment deposits
- Step 2: Convert them to Excel with Bank Statement Converter to build a clear payment history
- Step 3: Provide the statements to the factoring company and your attorney for the court petition
- Step 4: Keep copies for your own records after the transfer is approved and funded
Frequently Asked Questions
- Why do factoring companies want bank statements for a settlement sale?
- They verify your payment history matches the settlement schedule and confirm no red flags exist before offering a lump sum in exchange for future payments.
- Is court approval required to sell a structured settlement?
- Yes, in nearly every state under the Structured Settlement Protection Act, a judge must approve the sale as being in your best interest.
- How much of my settlement can I sell?
- You can typically choose to sell all, a portion, or specific future payments, though courts scrutinize sales of the entire remaining settlement more closely.
- Will selling my settlement affect my taxes?
- The lump sum from selling settlement payments that were originally tax-free (like personal injury settlements) generally remains tax-free, but confirm with a tax advisor for your specific settlement type.
Convert Your Settlement Statements