Since their genesis in the early ‘80s, structured settlements were touted as the “crest of the future.” Undoubtedly, structured settlements now form part of our legal landscape as one-third of tort claimants adopt it. Structured settlements are created after the filing of a lawsuit before the judge interposes the litigation. Personal injury claims fall under structured settlements with the defendant agreeing to carve out a future income stream for the claimant instead of a lump sum payment. The defendant insurer wields the bulk of a higher amount of money if payable throughout the years, and can secularize investments for more money to be paid in future. Behemoth insurers who cannot pay high-value liabilities flung doors open but delay payment. Accordingly, the design of structured settlements serves the expediency of the insurance corporations.
Mary Church became the beneficiary of a structured settlement following a personal injury lawsuit on being hit by an overspeeding motorist as she rode her bike along a pavement. The structured settlement provided her non-taxable income on a monthly and annual basis. But like everything else, Church could not foresee the future. The pre-determined payments did not anticipate her financial needs with accuracy. When she wanted to utilize the future payments, she found federal and state laws allow the transfer of structured settlement rights, just like lottery winnings. Unlike common law jurisdictions that grope for coherence on the commercial landscape, the US’ Uniform Commercial Code Revised Article 9 incentivizes pledging and other forms of assignment of payment rights to facilitate credit transactions”.
Sell Structured Settlement
Shop Around to Identify the Lowest Discount Rates
Church scanned the market to get the lowest discount prices for a high lump sum payment. The average interest rates range from 12% to 18%. The market prices take a nose dive in times when the industry faces market volatility and financial crises. Additionally, the itemized list of expenses, annual interest rates, and quotient amount determine the lump sum recoverable from the transfer of payment rights. You can also advertise your future income stream at specific websites where structured settlement buying companies pitch their bid.
Structured Settlement State and Federal Laws Ensure Fairness
The transfer of payment rights to structured settlement purchasing companies must undergo court scrutiny and comply with a slew of legal provisions at the state and federal level. The buyer of annuities presented Church with a detached disclosure statement plainly detailing the transfer agreement terms and admonished her to seek professional advice in bargaining the transfer. When the matter came up for hearing, Church demonstrated the transfer would be in her “best interests.” The court examined the discount rate and net lump sum cashable, on finding the figures surpassed market rates, Church got court approval.
What is the “Best Interests” Test?
Courts have attempted to dissect the “best interests” threshold test with varying opinions. Some judges have held the view that the test depends on the unforeseeable or unprecedented financial circumstances. Other schools of thought tout for a broader approach considering material facts, economic status and alternative sources of income of the payee. Similarly, exorbitant discount rates have been held to be contra the “best interests” inquiry.
What Documents Did She Deliver to Court?
To get court sanction, Church and the structured settlement funding company compiled all documents that predicate the petition. Payees must retrieve the annuity contract, the original structured settlement agreement, existing assignments, and a list of all of their dependents. On the other hand, the structured settlement company prepared the disclosure and notice, served interested parties and invited them to participate in the court process.
What if You Cannot Trace Some Old Documents?
Even if Church had lost her copy of the annuity contract and other underlying documents, the court could still have allowed her to proceed. Where papers have been lost, the court will assess whether the party in possession has taken reasonable steps to retrieve them. Payees can also swear an affidavit to capture the details.
High-Flown Structured Settlement Purchasing Companies
Fairfield Funding boasts a vast pool of Novation professionals to craft a customized transfer agreement, scale up your lump sum with reasonable discount rates and consolidate relevant documentation to pass muster in court.
Woodbridge Structured Funding will be your free representative before belligerent annuity issuers and sharp judicial eye to ensure you get cash up front with the lowest expenses and yield a grand lump sum award. The company has above ten years of expertise in the factoring industry.
Stone Street Capital will ensure your petition for approval is placed before the judge momentarily, adhere by procedural and substantive laws to get automatic court approval and pay your lump sum devoid of “hidden fees”. As a renowned buyer of annuities, structured settlement payments and lottery winnings, they have ultra-low discount rates, fast services, and adequate resources.