Caught in the Toils of Economic Hardships? Consider Selling Your Structured Settlement Payments For A Lump Sum

Millions of US citizens sustain personal injury annually attributable to tortious acts or omissions. In the eyes of the law, a tort claimant may not dispose of the lawsuit to a third party to enforce the claim against the defendant. To recover compensation, a tort victim chooses between going to trial in court and settling with the defendant. Most state courts forbid the assignment of tort claims due to numerous common law and statutory provisions. Courts prohibit the maintenance of suits at the behest of attorneys, the theory of champerty and public policy reasons. However, annuities and structured settlement proceeds flowing from the resolution of tort claims are assignable. Tort claimants’ attorneys map out periodical payments in future, but this is only the frosting on the cake as selling falls under a stringent regulatory framework.

I became the recipient of a structured settlement following an automobile injury where the defendants funded an annuity. Although my attorney had laid down an impeccable payment structure, my financial status changed as I started developing cardiac problems in my late ‘40s. One time I decided to make a pitch for my structured settlement payments by trading into a buyer of annuities. Like lottery winnings, the financial package yields a whack of money in lump sum payment when sold wholly or partially. Tort claimants have another bitter pill to swallow as getting your lump sum payment means you take the plunge.

Sell Structured Settlement

To sell your structured settlement, get started by consulting structured settlement funding companies for free quotes. Every state has a unique regulatory framework underpinning the transfer of structured settlement payments. Once you’ve endorsed the free price quote, the buyer of annuities handles the painstaking part of the process, including court applications and disbursing your cash.

A Premium Price Offer Depends on the Discount Rates

To seize the lion’s share for the portion of structured settlement payments I decided to turn over, and I explored the factoring industry for the lowest discount rates. However, you have to consider factors such as nature of the structured settlement, fixed annuities and life contingent payments, total value of payments sold, duration of payment deferral and professed financial power of the annuity issuer.

What is the Discounted Present Value and Applicable Federal Rate in Factoring?

The discounted present value may be estimated by using the recently circulated applicable federal rate for calculating the current value of structured settlement payments as published by the US Internal Revenue Service. The rate exceeded the discount rate applied in my structured settlement transfer agreement but helps you determine the minimum value of the lump sum recoverable.

How Long Does the Court Approval Process Take?

I only waited one month before the matter came up for hearing before the judge in a circuit court. We met with the judge in chambers, and I had to answer a barrage of questions regarding the transfer of structured settlement payments. I only appeared for two hours and left with the assurance I would receive payment in a couple of days. The court process depends on the court calendar of your county and state SSPA requirements. While you can complete a transaction in one jurisdiction in less than two months, others can drag for a whole year.

What is “Court Scrapping”?

Court scrapping is a colloquial phrase for the process by which structured settlement funding companies personally or through professionals appraise court records to unearth the nature of your annuity contract. However, most structured settlement companies do this for mere poaching to hunt down sellers and lure them with a higher bid than what they have received in the ongoing deal. Such unscrupulous companies can slow down your sale as they throw you on the horns of a dilemma.

Top Picks of the Structured Settlement Factoring Industry

J.G. Wentworth helps review your annuity contract to determine viability in court, creates a transfer agreement tailored to your financial demands, and generates free quotes as well as price offer for structured settlements, lottery winnings, and annuities.

Peachtree Financial Solutions has obtained court approvals across all states all over the US. They have novation experts at a stone’s throw distance to help lodge your petition in court for review by the judge in the shortest space of time.

Fairfield Funding is a celebrated buyer of structured settlements owing to their expeditious deals, lucrative lump sum offer and reasonably low discount rates to give you a larger portion of lowered payments.