Plaintiff awarded a structured settlement, which means that they are entitled to periodic payments agreed amount of money until the full amount was not paid. Then, for whatever reason, Plaintiff believes that they have a lot of money quickly. They can use their structured settlement as collateral for the loan, as described in the previous section, or they may choose to sell.
The decision on the sale is the first step in a long, legal process under control. Late at night ads often make it sound as sales of structured settlement is as easy as calling a phone number, but in reality, it is much more complicated:
To the final sale must be approved by the judge, the plaintiff must first prove that they have legitimate reasons for wanting to sell, such as medical expenses, pay for school or buying a house. If they can not demonstrate this need, you should not even referring to the agency, so that the judge will not approve the sale. Most state laws require that the transfer of the settlement to be in the interests of the plaintiff.
If the plaintiff believes that they have good reason for wanting to sell, they contact the company that buys structured settlements, such as John Wentworth. It is best to contact several companies to see which will give the lowest discount rate, which can range from 6%, which is extremely favorable for the plaintiff, and 30% of that hut. Once the deed is done, the company will apply for the transfer of the settlement. The judge then approve or reject the transfer. It may take 60 to 90 days for the entire procedure to be completed.
It should be noted that 2/3 of the states have laws that restrict the sale of structured settlements. There are federal rules regarding tax-free sale of structured settlements to third parties. Additionally, some insurance companies will not pass rent to third parties.
No comments:
Post a Comment