Are you at present being paid a structured settlement payment? Maybe you are considering selling them? Before taking the plunge in selling them for immediate cash, here is just a bit of information that you should be knowledgeable of before finally deciding to sell.
Do your own homework. Research extensively on the companies you are considering selling to before seeing them. It is always imperative that you only deal with a legitimate company. Then internet is one good source of information.
There are various types of structured settlement payments that can be sold, namely: court ordered payments for an injury due to disability, life insurance payments, and even lottery payments. Regardless of the type you sell, you will be protected whenever an unnecessary incident happens. For example, if the payer of the annuity or payments filed for bankruptcy, you will not likely be affected if this happens after the sale. Upon selling your structured settlement payments, they actually become the property of the buyer of the settlement. Thus, if the payer defaults on the payments, it will be the responsibility of the new owner, which is your buyer.
For more details on how we, the public, are protected with these seemingly complicated financial transactions, let’s discuss a bit of the Structured Settlement Protection Act. This article will likely positively affect your financial planning in the near future.
The Act regarding the structured settlement is a form of legislation to protect the general public’s interests. The Structured Settlement Protection Act defined many safeguards for those individuals who are recipient of structured settlement payouts including the sale of it.
The right to one’s structured settlement payments is personal. Considering the fact that this is receivable money in the future and the option to sell it is one’s discretion, the terms of the settlement payments purchase can be taken advantage by the investors who are mostly experts in the financial sector already. The terms of the sale process including the contracts involved may work only in their favor, not yours.
To ensure you, as just an average person without any thorough knowledge of the structured settlement deals, are protected, many states right now have requirements to grant you the authority to sell. You will be required to complete an application and other papers before the court. Likewise, you will be obliged to notify all the parties involved in the settlement.
It is also mandated in the Act that you should seek professional advice regarding the transaction. The Act ensures that you receive competent and independent counsel about the possible positive and negative consequences of selling your payments in your specific situation.
The Act now makes certain that you are protected with your best interests with the selling of your structured payments. However, check with your local attorney as some states don’t have the implementing guidelines or the counterpart state law yet. Nevertheless, your legal counsel will have some remedy regarding the matter