Can You Sell Your Structured Settlement Payments Without Going Round the Twist or Losing Your Funds?

A structured settlement is a monetary arrangement, including a future income stream accepted by a tort victim to settle a personal injury lawsuit. Structured settlements first appeared in Canada and the US in the early 1970s to solve the problem of lump sum dissipation. Today, structured settlement payments have gained rapport in countries England, Australia, and other Commonwealth nations. Nevertheless, the structured settlement system began to creak under the strain after most tort victims, and lottery winners found themselves locked in an inflexible finance kitty unyielding to their immediate demands. It created an impetus for the emergence of structured settlement buying companies.

On August 2011, Sharon Smith entered into a structured settlement agreement entitling him periodic monthly payments of $3,644 guaranteed for 30 years and five lump sum annuities. She desired to retrieve a lump sum payment in return for a proportion of the structured settlement future income stream. Sharon dug into the structured settlement factoring industry to identify a reliable and knowledgeable company that could buy $1,600 of each $3,644 monthly installments. She found Stone Street Capital’s website and assessed the highest amount of money she could rake in. After deliberations with a customer representative, she agreed to enter into an agreement transferring partial payment rights for a lump sum buyout.

Sell Structured Settlement

Stone Street Capital Ensured Compliance with Federal and State Laws

Sharon received disclosures about the discount rate, the net value of her future payments and processing fees. Stone Street Capital advised her in writing to seek professional tax, accounting, legal and financial assessment. However, she needed quick cash and chose to skip the step when the company told her she could waive this right.

The structured settlement buying company also served interested parties with relevant documents. No objection came into play from either the annuity issuer or the structured settlement obligor until the court hearing. The court assessed the net sum payable to her finding it was fair, just and reasonable in her case. After compliance with all statutory provisions, the judge gave orders approving the transaction.

Does the Process Involve Your Beneficiaries?

Some US states have additional requirements on top of court approval and disclosures. Sharon was domiciled in Maryland and as a mother; the law requires her to notify beneficiaries she was transferring payment rights as they stand to inherit the proceeds if they survive you. Nevertheless, Stone Street Capital did all the notifications while preparing the relevant bundle of documents filed in court.

Selling Structured Settlement Payments in Maryland is a Controlled Transaction

The federal law that affects structured settlement is the IRC 5891 that validates any transfer of payment rights and thus intimates all US citizens can sell their cash flows under the kitty on the condition of court approval. Stone Street Capital usually seeks judicial approval to avoid incurring the 40% excise tax penalty on the payment rights transferred.

The Contract Has A Non-Assignment Condition, Does the Court Deny Approval?

Some standard structured settlement agreements may contain a provision that provides the payee cannot sell, transfer or dispose of payments with the intent of limiting assignment rights. If the non-assignment language convinces the judge, you can be forced to abandon the deal. Although her structured settlement agreement had that clause, the court in Maryland overlooked the anti-assignment term. Most judges do not uphold the non-assignment clause where the structured settlement payments fall within the realms of personal injury or lottery winnings. She consulted Stone Street Capital who passed it to their attorneys to pore over, and they gave her the go-ahead.

Renowned Structured Settlement Funding Companies

Stone Street Capital has put in place measures to keep your transaction at full pelt with attorneys to draft and review a customer-specific agreement, file paperwork in court and obtain a final qualifying order from the judge. They can act as you legal representative in court to help you meet the “best interest” test.

Fairfield Funding is the highest structured settlement payments bidding buyer gives you a tailored price estimate giving you a road map of the transaction via Live Chat and ensures compliance with federal and state laws.

Woodbridge Structured Funding is among the handful structured settlement purchasing companies with customer-specific financial plans, warm customer support, and ISO Certification standards.…