Why is court approval required?

Court approval protects your interests by ensuring the transfer is fair, legal, and in your best interest. Judges review all terms to prevent fraud and ensure compliance with state laws.

How long does court approval take?

The process typically takes 30-60 days from filing to court hearing. We handle all paperwork and guide you through each step.

What happens at the court hearing?

The judge reviews your case, asks questions about your decision, and ensures you understand the terms. Most hearings are brief when all requirements are met.

Can the court reject my transfer?

Courts can reject transfers if they determine it's not in your best interest. We work to ensure all requirements are met and provide transparent terms to maximize approval chances.

Do I need to attend the hearing?

In most cases, yes. The judge wants to ensure you understand the terms and that the transfer is truly in your best interest.

Court Approval Process for Structured Settlements | Timeline & Requirements | Smarter Payouts

Why Court Approval Is Required

The Structured Settlement Protection Act (federal law) and state laws require judicial approval before you can sell structured settlement payments. This protects you from predatory companies and ensures the sale is in your best interest.

🏛️ Legal Standard: "Best Interest"

Judges must determine that the transfer is in your "best interest" considering your age, mental capacity, financial situation, dependents, and the reason you need cash.

Questions About the Legal Process?

Chat with Mint AI to understand court requirements specific to your state and situation.

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5-Step Court Approval Timeline

Total Timeline: 6-12 weeks from filing to payment. Some states are faster (California, Florida: 4-6 weeks), others slower (New York, Illinois: 10-16 weeks).

Petition Filing

The purchasing company files a petition with the court in your jurisdiction

⏱️ 1-2 weeks

Notice & Disclosure

All parties (insurance company, annuity issuer, interested parties) are notified

⏱️ 2-4 weeks

Court Hearing

Judge reviews the petition and may ask you questions about the sale

⏱️ 4-8 weeks

Judge Decision

Judge approves or denies the sale based on legal requirements

⏱️ Same day or 1-2 weeks

Order Execution

If approved, court order is executed and payment is processed

⏱️ 1-2 weeks

Ready to Start the Process?

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Related Resources

How to Sell Process

Learn the complete 5-step process for selling your structured settlement.

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What is a Structured Settlement?

Understand the basics of structured settlements and how they work.