Ever since their emergence as a supplementary to the primary structured settlement sector, factoring companies have been playing a crucial role by giving annuitants the much-needed flexibility. Structured settlement factoring funding companies pay tort victims who have a structured settlement annuity a lump sum payment in exchange for a portion or all of the future income streams. The structured settlement purchasing companies make a profit by paying annuitants a lump-sum amount of money by discounting the future payments assigned. Although some contend the sale of the structured settlement is detrimental to all annuitants, this is a propagandist myth. Not all tort victims sustain disabilities or paralyzing injuries as to require the guarantee of future income to meet expenses, and some can fend for themselves. Factoring companies help such tort claimants to attain flexibility and liquidity for their structured settlement periodic payments.
Carlos Kaka became the payee of a structured settlement annuity as compensation payable by Monumental Life Insurance Company in 2010 following a personal injury lawsuit. With a growing family, Carlos mired into deep financial difficulties as he was unemployed and relied on his wife and structured settlement payments to eke out a living. Carlos and his wife simulated all manner of money solutions, including lottery, poker or a hefty loan. Nevertheless, his wife had a viable business opportunity as they were bilingually fluent in Spanish and English, they could start a translation company online. They decided to capitalize on their structured settlement payments to finance the translation enterprise. As a controlled transaction, sale fell under the Californian Structured Settlement Transfer Act.
Sell Structured Settlement Payments in California
Legal Aspects of the Statute Impacting on the Couple’s Transactions
Disclosures to the Seller of Structured Settlement Payment Rights and Notice to the Attorney General
Once they had identified a true and tested structured settlement factoring funding company, they received a price offer and consented to the lump sum online. The buying company conveyed relevant documentation, including a transfer agreement, note admonishing professional independent advice and disclosure statement. Carlos noted the disclosure statement drew his attention to the discount rate, annual interest rate, and an itemized anthology of all expenses, to name but a few. California law enjoins the structured settlement purchasing companies to disclose the terms of the agreement, net lump-sum retrievable and gross servicing fees. The company also forwarded their bundle of documents to the Department of the Attorney General for review.
Court Application Process and Jurisdictional Issues
The structured settlement funding company filed an application in Fresno County as required by the law. The court process was a short-term business as Carlos only got grilled by the judge about the plans he had for cash he would receive from the transfer. He also answered questions about his dependents, and they came with their newborn daughter to court and his wife, the judge had no misgivings it was in their best interests. Finally, the judge asked Carlos whether he understood his right to rescind the agreement and whether he wished to do so, he screamed a big NO.
What Was Next After the Court Hearing?
The transfer agreement came into effect after the court issued a final order. However, the judge told him that the court retained a supervisory jurisdiction to oversee the implementation of the agreement. The transfer was approved and complied with the provisions of the Californian SSTA and exempted from the 40% Excise tax. If the company failed to pay the lump-sum on the agreed date, he could have gone back to court, but he received payments on time.
Top-Class Structured Settlement Purchasing Companies
Peachtree Financial Solutions has all procedural and substantive legal requirements at its fingertips; they can be a safe pair of hands to move your petition in court, deliberate with the judge and ensure you remain within the scope of the law for extra protections.
SenecaOne Company has a vibrant online visibility with thousands of reviews; they can convey a personalized transfer agreement, give a high price offer and fine tune your lump sum award without overstretching your future payments.
Woodbridge Structured Funding has an indelible footprint across all states in the US. They can be a money-spinning buyer for substantial future income streams, expedite factoring transactions and help you attain your goals without breaking the bank.