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What is a Structured Settlement Factoring Loan?

Tuesday, December 27th, 2011

Save money with structured settlement A structured settlement factoring loan is an option when you receive a structured settlement that results from a person injury lawsuit. A structured settlement is an award in which the victor of the lawsuit will receive periodic payments over a specified time. If this arrangement does not meet your current needs you may consider a structured settlement loan. To obtain a structured settlement factoring loan you will need to sell all or part of your future payments for a one-time lump sum of money.

Model Structured Settlement Protection Act

Sunday, May 15th, 2011

The Structured Settlement Protection Act of 2002 was instituted to protect those who had been awarded structured settlement money and had a desire to sell part or all of it for a lump sum. Basically, it demands that any transactions conducted by a factoring or structured settlement loan company must be approved by a state court to make sure the transaction is in the best interest of the client and the client’s dependents.

5 Predictions for Structured Settlement Factoring in 2011 (Part 1)

Friday, January 14th, 2011

2011 2010 was a great year for most structured settlement factoring companies. Record low rates created attractive propositions for annuitants, a struggling economy was a catalyst for more annuitants to sell their annuities, and ample investor funds supported the influx of cases. It was the perfect storm for many of the companies within the industry.

Towards the end of 2011, some structured settlement factoring companies could see their demise.

Below are 5 predictions for the structured settlement factoring industry for the upcoming year.

Several structured settlement factoring companies will go out of business.
Courts will deny more transfers.
Legislation will become stricter.
Institutional money will be favored over private money.
Rates will increase, structured settlements will be worth less.

New York Judge Cracking Down on Peachtree Financial

Wednesday, July 28th, 2010

On May 26th, 2010 Judge Norma Ruiz denied a request for court approval to transfer future structured settlement payment rights to Settlement Funding of New York, LLC (Peachtree Financial). The opinion, seen here, is a direct response to the “cash now” advertising of this company. It’s good to see a judge take the time to enforce the Structured Settlement Protection Act as noted by this author.

The Structured Settlement Factoring Exchange

Sunday, February 21st, 2010

In this video, Andrew Cravenho, President of the Settlement Quotes, LLC Structured Settlement Factoring Exchange is interviewed by John Darer of the Legal Broadcast Network. Viewers can learn how a Structured Settlement Factoring Exchange is a viable option to use when selling structured settlement payment rights.

The Servicing of Structured Settlement Payments

Monday, November 9th, 2009

What is the servicing of structured settlement payments?

The servicing of structured settlement payments occurs when an annuitant enters into a structured settlement factoring agreement in which the annuitant chooses to split one or more payments and the factoring company becomes the payee of the entire payment. Once the factoring company receives the entire payment from the insurance company, they keep their agreed upon amount and pay the annuitant their portion.

Structured Settlement Factoring Transactions Not Being Paid

Tuesday, February 24th, 2009

Settlement Quotes has received several inquiries regarding structured settlement factoring companies delaying their obligation to pay annuitants.

Here are a few of the blog comments that Settlement Quotes has received in the past few months:

Questions About IRC 5891 and the 40% Excise Tax

Thursday, October 16th, 2008

The following two questions were asked by John Darer of Structured Settlements 4 Real:

Can a structured settlement recipient choose to forgo getting Court approval? If so, what are the consequences?
How does the factoring company “factor in” the 40% excise penalty (set forth in IRC 5891) in the factoring quote to the structured settlement recipient?

The answer to this is quite simple. An annuitant cannot forgo the court approval process in a structured settlement factoring transaction. Here is why:

What Happens If Your Annuity Policy Includes Anti-Assignment Language?

Sunday, September 14th, 2008

Many annuity policies and settlement agreements usually include anti-assignment or anti-sale language. Even though this language is included within your settlement documents, you are still able to sell your future structured settlement payments!

Here is an example of the language that may be contained inside your annuity policy or settlement agreement:

Examination of a Structured Settlement Factoring Case

Friday, September 5th, 2008

John Darer of Structured Settlements 4 Real published a disturbing article yesterday afternoon about an individual interested in selling the rights to a structured settlement with the following details:

Annuity set up in 1983
The caller stated that this money would be used for investment purposes, but would not go into detail.
The annuitant is disabled and suffers from the incident 25 years ago.
Annuitant is a resident of California
Caller was not the annuitant or financial consultant