Structured Settlements Are A One-Size-Fits-All Approach Imposed By The Law, Selling For A Tailored Lump Sum Fits Like A Glove

Structured settlements have long been used to settle personal injury claims by guaranteeing a future income stream in the form of periodic payments. Like lottery winners, tort victims who recover a substantial monetary award do not get a one-off lump sum but an annuity that provides payments and annuities to devolve to payees at pre-determined dates. The federal and state government was wary of the activity in the factoring sector and sought to bring regulatory mechanisms. Unlike your car, selling structured settlement payments for quick, easy cash is now a controlled transaction that must be in writing, sanctioned by a court and independently valued by a professional such as actuary, accountant or attorney. If you own a structured settlement, you can sell at a premium or king’s ransom, but you must adhere to the legal process.

Jack Robinson was awarded a structured settlement tort claim for the wrongful death of his mother when he was only three years old. On reaching eighteen, his Robinson received his first annuity and monthly installments. Late last year, he thought of starting a truck spare parts online store to expand his brick and mortar business in North Dakota. With his business struggling to stay afloat and worsening economy in the county, he decided to convert his structured settlement payments into a one-off lump sum monetary award. In North Dakota, the process is seamless as he only needed to comply with the model Structured Settlement Protection Act.

Sell Structured Settlement

Preliminary Considerations and Pre-Contractual Searches

To hedge against risks in the industry and get the best bang for his buck, Robinson first explored the cluttered marketplace for the highest price. He obtained a quote from J.G. Wentworth promising to buy out all of his structured settlement payments in exchange for a whacking $500,000 payable at the consummation of the deal. The company uses a flat discount rate to work out the present value of his future income streams to determine the price. The concept also takes into consideration the net worth and timeframe for remaining payments. Robison was advised to seek professional independent advice by the structured settlement funding company. However, he opted to waive this right as to speed up the process.

Extra Layers of Protection Provided By North Dakota Laws

I was required to appear in court; the judge was well-positioned to assess and elicit up-front answers about my personal and economic circumstances. The matter came up in the county where I reside as superior court justices will be able to probe my background, financial conditions, and other relevant factors. The structured settlement company also filed a bundle of documents in court to support the application. The judge made findings that the discount rate and lump-sum award retrievable was fair, just and reasonable. Economic hardship impelled the court to sign off the transfer.

Disclosures to the Court and Robinson, the “Payee”

Structured settlement companies have a duty in law to disclose to the seller the net payments turned over, their discounted present value, discount rate and annual interest chargeable. Robinson answered questions on whether he had previous applications seeking to transfer his structured settlement payment rights.

How Did He Receive His Lump Sum Payment?

Robison was informed to cash a check within 48 hours after the court gave a qualifying order approving the transaction. He was glad he had reaped the harvest of his structured settlement payments as a one-off lump sum award. He poured thousands of bucks for his online merchandise and spent the remainder to finance his college tuition. Interestingly, he still gets remittances for the portion of his structured settlement payments that were not assigned.


Top-Rated Structured Settlement Companies

Olive Branch Funding leads the pack in the industry with fast, easy quotes for your lump-sum payment, customer care, reasonable and fair discount rates and low-cost transactions. The company helps you file a petition in the court of your county, resolves issues with interested parties and gives best customer experience.

Fairfield Funding will give you the highest price offer for your structured settlement payments, assess your cash flows for a fair scaled amount and fulfill all court or judge orders to avoid tax penalties.

Stone Street Capital provides an attorney to act as a representative before the court, serves “interested parties” with notices, prepares a transfer agreement quickly for your execution, and provides comprehensive guidance. Entrusting them as your buyer ensures you do not cough up less and get a larger lump-sum monetary buyout.