Category : IPA
By AFG Newswire Sept. 22, 2014 9:26 a.m.
15 Necessary Findings of Court for a Successful Structured Settlement Transfer
In 2009, California Senate Bill 510 passed and gave the Courts a larger role in protecting the best interest of people selling their structured settlement payment rights.
Legislators listened to their constituents who voiced about consumers that sold their structured settlement payments: eventually run out of money, become penniless, already handicap from their personal injury and sometimes become homeless-eventually become a burden on the state, and federal governments.
This is why we have even more regulation. We don’t want this to happen to the consumer. The regulation we talk about here is a more personal involvement the courts have with the seller’s finances and personal life. It gets a little nosey.
15 Necessary Findings by the Court about Your Life (paraphrased from 10139.5 et seq)
- Can you handle this proposed transaction?
- The stated purpose of the transfer.
- Your financial and economic situation.
- Do you understand the terms of the contract?
- Was the settlement money for future medical care?
- Was the settlement money for future living expenses?
- If you still have those injuries, then do you have independent sustainable insurance coverage, and for the future too?
- Other means of support? Child support obligations? Future Financial Obligations
- Did the terms of the contract meet your financial objections? (Do you get this one?)
- In the last 5 yrs. have you tried and been denied a transfer?
- Have you ever tried to transfer with this particular structured settlement before?
- Have you ever had any other structured settlement before and tried to transfer it, if so what happened?
- Are you or your family/dependents facing a hardship?
- Have you received independent professional advice regarding this transaction? The court may deny or defer ruling on the petition for approval of a transfer.
- Any other factors of facts that the payee, or transferee, or any interested party calls to the attention of the reviewing court …or that the court determines should be considered in reviewing the transfer.
Fifteen is wide open. Do you need to consult a professional first? Think twice.