The Approval of Conversions of Structured Settlement and Secondary Market Annuity PaymentsAs you may be aware, selling your structured settlements for cash is a legal process. Almost every state has enacted legislation which regulates these transfers and the federal law provides for alternative procedures if you live in New Hampshire, the only state that does not have an Act relating to the sale of structured settlements. These laws include petitioning a local court for advance approval of the transfer of structured settlements. Your sale of structured settlements will only be valid and enforceable once approved by court order.
What needs to happen for my proposed sale of structured settlements to be approved?A court will have to make sure that your proposed sale meets certain requirements as set out by state law. For example, the structured settlement buyer that you are working with generally must send you a disclosure statement and notice of the proposed structured settlement sale proceeding. Other than these black and white requirements, which are pretty easy to meet, the court must approve the proposed transfer is in your best interest and, in some states, that it is fair and reasonable. But this isn’t that hard either if you work with an experienced buyer of structured settlements. Statistically, the vast majority of these transfers are approved. With direct funding capabilities and affiliation with structured settlement buyers, we can offer provide you the most cash for structured settlements you have received to date. Call us before you sign any contract.
What kind of sale is in my “best interest”?The court may look at your financial situation and will consider what you intend to spend the money on if you were to get a lump sum for structured settlements. The following are common frequently utilized reasons for which the sale of your structured settlement payments may be deemed to be in your best interest:
- Health and medical reasons – Needing money to fund medical procedures or to pay for treatment, medication, etc. usually means the court will approve the transfer because the sale is in your best interest.
- Other emergency reasons – Losing your house/property to a natural disaster, stolen car, being evicted, etc. Generally, a situation which involves your rebuilding of your life will lead the court to find that the transfer is in your best interest.
- Paying for education
- Paying off debt
- Buying a house/business/good investment – if the court sees that you have a well thought out plan to spend the lump sum wisely, the court will likely find the transfer to be in your best interest and grant your petition for prior approval.
What kind of sale is “fair and reasonable”?Typically, competitive prices/rates for the transfer will be considered fair and reasonable. You should watch out for deals with very steep discount rates. When you decide to work with us to get cash for structured settlements, we are happy to work with you find a discount rate you find acceptable.
If you have questions or would like more information about selling structured settlements or buying a secondary market annuity, it’s time for you to talk to us…800-449-6311