Can I Borrow Against My Structured Settlement?

A structured settlement could be more trouble than it’s worth, but it could be what you get after finally winning your lawsuit. With a structured settlement, you’ll get your long-awaited award, but there’s a catch – you’ll receive it in payments, and those might not be enough to cover your current expenses. Can you just take out another lawsuit loan against these payments?

Unfortunately, things are a bit more complicated than that if you’ve been awarded a structured settlement. However, if you need cash now and your settlement isn’t enough, you still have options. Find out how you can still get the money you need if you’re facing a structured settlement.

Why You Can’t Borrow Against Your Structured Settlement

You’re not able to borrow against your structured settlement payments because the money is technically already yours. Federal law is designed to ensure that you receive a stream of steady, tax-free payments, and you’re barred from using them as collateral for loans. You simply aren’t allowed by law to use these payments as collateral.

On top of that, even if it were legal to use these payments as collateral, few financial institutions would accept them as such. A bank would need to get permission from a court to treat your settlement payments as collateral. It could take far more trouble than it’s worth for a bank to get a court to agree to let them seize your structured settlement payments in the event of default.

Can Structured Settlement Payments Be Used as Proof of Income?

While your structured settlement can’t be used as collateral for a loan, the payments that you’ll receive from it can be used as proof of income when you apply for a loan. A bank isn’t able to seize your loan as an asset, but if your ability to pay is assured, a bank could be more inclined to lend to you. This information could be crucial if you’re applying for a car loan or mortgage.

There Are No Structured Settlement Loans

Despite what you may have heard, there’s no such thing as a structured settlement loan. That’s because the same law that prevents your loans from being subject to income tax also stops them from being used as collateral. Your only option to get more money now from your structured settlement is to sell it.

Selling Your Structured Settlement Payments

Legal funding companies often buy structured settlement payments as an investment. If you want to get more money now from your settlement, a reputable legal funding company will be able to offer you an interest-free lump sum payment for it. However, it can take some time to both find a legal funding company you want to work with and to complete the sale process.

Should you decide to sell your structured settlement payments, you’ll need to speak with your judge to get approval. They will also work with the legal funding company to come to an agreement that is in your best financial interest. However, once a sale is agreed upon, you’ll receive your money and can spend it however you want, with no strings attached.

Apply for a Structured Settlement Buyout Today

At Tribeca Capital, we can buy out your structured settlement payments, giving you access to the cash you need right now but might not receive for years. Instead of treading water financially as your settlement slowly pays out, we can offer you a lump sum payment upfront for your future settlement payments. You’ll walk away debt-free with cash in hand to use how you want.

Contact us today to find out how we can help you and to apply for a structured settlement buyout today. You fought hard for your settlement – don’t let it control your life. We can give you  fair value for it and help you start the next chapter of your life on the right foot.

Call 866-388-2288

Apply Today


Fill out the form for a free consultation and quote. Get cash within 24 hours of approval.
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden

Still Have Questions?

Call us toll-free at 866-388-2288 to speak with a friendly funding specialists today.

Get Funds Today