How Court Works When Selling Your Settlement
The first question we always get is: How long does the process take? Because of the way most settlement purchasing companies advertise, people might assume that the process is instantaneous. This is really just marketing jargon for indicating a speedy transaction. It can be a fairly simple process if done the right way by the right company, but the process can actually take weeks or months depending on a number of factors. The most obvious variable is that the approval process from the judge varies from state to state. Contact Second Street for a more detailed timeline after we assess your case.
If you live in Texas and are receiving structured settlement payments, but find that your financial goals are still out of reach, Second Street is the answer. We have 16+ years of experience purchasing annuity or structured settlement payments. In most cases, transferring a structured settlement involves large sums of money, and that’s one reason we have laws to regulate transfers. To sell the annuity through which your structured settlement is funded, a judge must clear the transaction. The transaction will go forward only if he or she approves it. This is sometimes seen as an annoyance when you need cash fast, but it is for your own good and many times can save you thousands of dollars and more time in the end. The Structured Settlement Protection Act of 2002 was enacted to protect those who receive court-ordered settlements and ensure they get the full benefit intended in their agreements with their purchasing company. The law also created safeguards and made the deal and transfer process more transparent for the seller. Under this law, Judges who approve or deny structured settlement transfers must do so under what’s referred to as the “best interest standard.” The judge must be sure that the sale will benefit not only you, the settlement owner, but also any affected family members or dependents.
When you appear in court, the judge is going to ask questions regarding the impending sale.
Some of the most basic questions include:
Have you shopped around and vetted the company you’re selling to?
Do you definitely need cash now? Is the money to pay necessary bills or make thought-out investments?
With your available resources, is this the best way possible for you to get the money you need?
Will selling your future settlement payments danger your financial situation?
Have you been walked through all your sale options? Have you considered each one? (For instance, selling some of your future payments versus selling them all)
Are you aware that you’re getting less money by selling now than you would if you waited for the installment payments?
Do you fully understand the transfer agreement?
Has the agreement been reviewed by an attorney or other professional who is not working for the company you’re selling to?
The judge may also want to know if you’re having any current medical issues and how you’re paying for your care today and in the future, or if there is anyone who might oppose the sale.
As with any legal proceeding, selling a structured settlement is going to involve paperwork. While there won’t be an overwhelming number of documents required, the paperwork is a critical part therefore needs to be complete and completely accurate. Start thinking about the paperwork as soon as you make up your mind to sell your structured settlement. This will help you avoid any surprises or delays down the road.
Some of the documents you will need to get your structured settlement transfer approved include:
Identification
Settlement and Release Agreement
Sale Documents
Annuity Policy
While not required, it’s also usually a good idea to bring a record of your most recent annuity payments.
Seeing a judge in court has the simple purpose of evaluating your situation and decide whether or not your payments can be transferred. Worst case scenario is that the court decides you're not in enough need to receive the cash now. But don't worry, that’s rare and Second Street can help you every step of the way.
