While the future remains in the cards, we cannot do our routine activities without regard to the repercussions. Although we stay in the dark on what tomorrow holds, your actions today can mean a loss or gain for another. At four years old, I took a cruise in our neighborhood with my elderly friend at the driver’s seat in a coupe. The driver threw caution to the wind and started traversing corners at exceedingly high speeds and later lost control and rammed into a tree. Due to the amount of force, the seatbelt snapped, and I was hurled outside escaping the jaws of death narrowly. The recklessness resulted in psychiatric harm and physical injuries which I have long recovered.
My parents sued for personal injury and criminal prosecution of the heady driver. My attorney decided to underwrite a structured settlement for compensation under which I would cash in a stream of income. The money started rolling in once I turned eighteen. At 26, my financial world becoming a lottery, I had just been laid off and could hardly keep my head above water. Expenses and debts kept piling up in one fell swoop. To disentangle myself from debts, I explored every option I had in mind; I’m apprehensive of borrowing and still had a student loan to repay. I started kicking around the idea of selling my structured settlement and later took the plunge.
Sell Structured Settlement
Loads and Loads of Money Require You to Shop Around Thoroughly
To sell my structured settlement payments at the highest price bid. I used the internet to locate a buyer. Online structured settlement funding companies provide online calculators to help you work out the value of your future payments. Peachtree Financial Solutions agreed to pay out a lump sum payment that would give me above 70% of the discounted present value. I got down to the task and received paperwork which I signed and delivered back via email. Peachtree informed me I would have to appear in court on the date of the hearing. I attended the brief session and pleaded with the judge to sign off my transaction.
How Did the Court Strike the Balance between His Interests and the Transaction’s Fairness?
Sister circuit courts handling petitions to approve the transfer of payment rights use the “best interest” test to assess factoring transactions. The threshold issue of approving a transaction to transfer payment rights has a two-limbed test; my deal got approved as a slew of financial woes loomed largely and the discount rates, as well as the gross advance amount, were all fair and reasonable. However, courts consider a list of judicially-devised factors such as:
- The seller’s age, mental ability, maturity level, ability to support dependents, and alternative sources of income;
- The purpose of the proceeds of the proposed transfer of payment rights;
- Probability, the seller, may need medical treatment in future
- The monetary acumen of the seller
- Whether the seller is in an economic hardship to the extent of dire straits
- The competence of the seller in appreciating the financial ramifications after legal and financial valuation by a professional
- The timing of the application, for instance, if your annuity mature next month, the court will dismiss the petition
How Long Does it take to get the lump sum payment?
After the court had entered a final order approving the deal, it took a heartbeat to get my lump sum payout. It takes a short while as the annuity issuer has to acknowledge the new recipient by endorsing the court order and directions. The deal took about three months, but it depends on the state in which you apply for approval.
Three Structured Settlement Funding Companies on the Top of the World
Fairfield Funding will compute a lump sum offer and entrust an attorney as your legal representative in court, file paperwork and argue the motion before the judge. The company has gained toehold across the US due to their fair and conscious discount rates and little transfer expenses.
Peachtree Financial Solutions is a renowned buyer of structured settlement payments with a firm grasp of the industry’s ins and outs. They will do everything to comply with the law and consumer protection regimes to ensure you don’t lose a cent.
Woodbridge Structured Funding will kick off by sending a transfer agreement and disclosures by reflecting the lump sum payment, discounted present value and applicable discount rate. They give you a quick payout to relieve you financial troubles.