Top Tips for Court Approval
- Gather All Required Documents: Bring your settlement agreement, payment schedule, government-issued ID, and the sale agreement. Missing paperwork is a common reason for delays.
- Prepare a Clear Statement of Need: Judges want to know why you are selling your payments. Be honest and specific about your financial goals (e.g., paying off debt, medical bills, education, home purchase).
- Understand the Terms: Be ready to explain the sale terms, including the lump sum you'll receive, the discount rate, and any fees. Demonstrating understanding shows you are making an informed decision.
- Consult an Advisor: Some states require an independent professional advisor. Even if not required, consulting a financial advisor or attorney can help you prepare and answer questions confidently.
- Be Honest and Transparent: Answer all questions truthfully. Judges appreciate candor and may deny approval if they sense uncertainty or incomplete information.
- Review State-Specific Requirements: Each state has unique laws and forms. Check your state's requirements in our State Laws Guide.
- Arrive Early and Dress Appropriately: Treat the hearing like any important legal proceeding. Arriving early and dressing professionally shows respect for the process.
Frequently Asked Questions
Court approval protects your interests and ensures the sale is fair and legal. The judge reviews your case to confirm you understand the transaction and that it is in your best interest.
Common questions include: Why are you selling? Do you understand the terms? Have you consulted an advisor? What will you do with the lump sum? Are you under any pressure to sell?
Most hearings are scheduled within 30–45 days of your application. The process may be faster or slower depending on your state and court schedule.