Structured Settlement Transfers: The Hard Facts

by Gene Banyan

Structured settlement companies, also known as factoring companies, are in in the business of trading cash to people who have received a structured settlement annuity from a successful lawsuit. If you are looking to cash out and get that lump sum payment.

There are many important parts of a negotiation for your payment rights. If you want cash for payments, don’t be so quick to sell. Do you know that if you do sell your rights to a brokerage company you will be transferring ALL of your future payment rights to them?

Why do you see the commercials for payment transfers on TV often? They are making a killing in this business. Most annuity brokerage companies do business ethically, however you should remember that its in their interest to get your money. They want your payment rights. So, no matter how friendly the reps may sound ” they are definitely NOT your friends. They just want your money.

The only reason it would be acceptable to work with one of these companies would be if you were in serious hard times, the house will be foreclosed, etc., so your best bet is to tough it out and keep your getting your smaller payments.

Structured settlement and annuity companies profit by giving working class people like you large lump sums of money that are smaller than than the discounted face value the payments.

It is common knowledge that many of the structured settlement companies have abused their consumers. Because of this abuse from structured settlement companies, now guaranteed favorable tax treatment is now at your disposal, if you wish to transfer your structured settlement payments.

California law, Structured Settlement Transfer, SSTA, requires: (1) disclosures to sellers of structured settlement payment rights, (2) notice to Attorney General, and (3) a court approval.

The transfer of payment rights will require the brokerage company to file a petition in the county where the transferor lives. To grant the transfer of rights for approval, the court must determine:

(1) the transfer is in the best interest of the transferor, taking into account the welfare and support of the transferors dependents;

(2) the structured settlement seller has been advised in writing to seek legal and financial professional consultation and either has received counsel or decided to waive it;

(3) the transferor has received the disclosure form;

(4) the payment rights transfer does not interfere with any court orders;

(5) the seller understands the agreement, disclosure form; and

(6) the structured settlement seller understands his or her right to cancel the transfer of payment rights and does not want to do so.

About the Author:
It’s no secret that getting cash for structured settlements and annuities is tempting. Before you do, be sure to visit Cash for Structured Settlement, and Structured Settlement Company NOW for more FREE information like this.

Published by: Gene Banyan on August 29th, 2009 | Filed under Legal



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