Cash Flow Purchasers of Your Structured Settlement, Do You Need Financial Flexibility and Liquidity to Invest?

Two decades ago, the federal government started to direct the judiciary to embrace structured settlements as a means of compensation for personal injury claimants. The idea behind this kind of arrangement is to scale back social care expenditure by preventing the probability that lump sum awards will be frittered away, entrapping victims of severe injuries in the jaws of poverty. However, the downside is its lack of flexibility and loss of financial independence by the annuity holder or lottery winner. It culminated to the emergence of specializing structured settlement buying companies as a viable source of income to the recipients who needed money immediately.

Three months after he was born, Craig Jordan began experiencing fetal heart problems attributed to the negligence of an obstetrician and medical center. He was born with cerebral palsy, later being ensconced on a wheelchair for 24 hours under constant nursing. Left at the mercy of his elderly grandmother after losing his mother at birth, he was unable to complete his college studies or get employed. The family eked out a living from the money initially paid after the conclusion of his case. A ray of sunshine, however, was in the offing. When Craig reached eighteen, he started receiving cyclic compensations totaling $300,000, the remedy he secured in the resolution of a lawsuit lodged for medical negligence at his birth. Unfortunately, after collecting his initial payment of $15,000, Craig found out the money was barely enough to meet his immediate needs.

When he stumbled upon on a TV commercial aired for a service provider offering a lump sum in consideration for annuities like his, his heart leaped with joy. Hyper-aware of how misleading advertisements could be, he started exploring more companies seasoned in structured settlement buyouts.

Getting Immediate Cash | Formalities Followed By Craig 

After searching for a reliable and efficient company, Craig could sell the remainder $275,000 for a lump sum amount of money. He needed more cash to foot an extensive list of medical bills, buy his basic needs and keep his head above the waters. With the aid of a finance attorney, Craig routed a significant amount to an insurance saving bond, bought gold bullion and valuable shares offered by a leading oil and gas multinational. To avoid selling his structured settlement at a loss, he went for the most favorable discount rates in the industry.

Selling A Structured Settlement

  • California State Laws on selling your structured settlement, Were His Rights Safeguarded?

With the booming structured settlement factoring industry, the Californian legislature passed a Structured Settlement Protection Act (SSPA) to protect people like Craig. The statute declares the sale of a structured settlement as null and void where the court does not approve it. Chapter 593 cements the safeguards by requiring sufficient notice and disclosure while specifying the number of considerations a court must assess to determine if the structured settlement deal is in the holders’ best interests.

  • Can A State Court Deny Approval to Selling Your Structured Settlement?

Though the laws governing the sale of structured settlement differ by state, the federal cross-cutting SSPA demands court approval before the transfer of rights vested in Craig. His attorney informed him to compile firm evidence to demonstrate the transfer was in his best interests. As Craig had no dependents at the time, the court gave him the go-ahead as the terms of the sale agreement, and the discount rate was fair and reasonable. The judge also noted that financial hardship was not a determinant factor. Craig’s attorney also told the court there was an unprecedented change in circumstances from when he was a baby. In approving the sale agreement before him, the judge noted that his demanding financial needs justified the discount rate offered.

Tax Ramifications of Selling His Structured Settlement

Like his periodic payment under the structured settlement agreement, Craig discovered he could cash out without paying taxes. Federal laws exempt any money emanating from personal injury claims from taxes. With the assistance of his learned attorney, Craig’s sale complied with all federal and state legislation to avoid any tax penalties.

Craig’s Opinion on Structured Settlement Companies California

    Fairfield Funding

Fairfield Funding set the seal on his structured settlement buyout by disbursing his funding to meet testing financial demands and invest the rest of the money. A full-service company specializing as a purchaser of structured settlements, Fairfield Funding processed his agreement, forwarded to him to sign and acted as a legal representative to comply with all laws as well as court or judge orders.

    SenecaOne®

SenecaOne® can meet your immediate cash demands with a buyout for your structured settlement agreement. This buyer can give an offer of as high as $5000 for cash advances while acting as your representative throughout. However, Craig bypassed the company due to the steep price offered.

    Olive Branch Funding

Olive Branch Funding gives you an offer calculated by a statistician to inch you closer towards financial security and autonomy; they draft the agreement, prepare paperwork for filing in court and meet conditions set by the judge without a broker. However, their funding was not as quick as Craig wanted.