Tips About Structured Settlements and How to Select The Right Company

Selling a structured settlement is not difficult but does require some research and thought on the part of the seller before committing to the structured selling process. First, we must define a structured settlement. A structured settlement is a legal contract between two parties to compensate one party in the contract a set sum of money paid out in installments over a given period of time. Usually these contracts are formed and agreed upon between the party that is being compensated and insurance companies or other entities that are required to make the payments.

Selling a structured settlement to an investor or company that specializes in buying notes, or paper, is an option for people that have been awarded structured settlements. In some cases, people that have structured settlements may experience financial difficulty or health issues that require them to liquidate their structured settlement quickly. Loss of a job or other income streams may be lost, prompting these people to sell their structured settlement. Sudden illnesses such as cancer or heart attack may cause long term disability and immediate cash is needed to meet monthly expenses as well as medical bills.

There are other reasons to sell a structured settlement although not as dire as the above reasons. Some people sell their structured settlements to free up cash to take a long dreamed of vacation. Others sell their structured settlements for home improvements or to buy the dream house they have always wanted. The reasons vary with some selling their notes to put their children through college or taking the lump sum cash investing it in other financial instruments to increase their return over time.

It should be noted that when selling a structured settlement, the total amount of the settlement will not be realized. Structured settlement buyers offer to buy these notes at a discount in return for lump sum cash to the payee. The settlement buyer is assuming risk in buying the note with the discount reflecting the amount of risk the buyer must assume. Many risk factors must be considered by the settlement buyer including the amount of the settlement and the financial worthiness of the payer. Companies that make structured settlement payments are not immune to insolvency and bankruptcy, so the buyer must consider these factors before purchasing a structured settlement.

Deciding Between Multiple Structured Settlement Companies

Best Structured settlement companiesBefore we move on to the tips that will help choose one of the structured settlement companies to buy your payments, are you really sure what you’ve got on your hands is a structured settlement? When litigating procedures come to an absolute end, the winning and losing party may come to a compromise over the payment method for the settlement. Some individuals prefer to pay or receive a structured settlement. A structured settlement is paid in installments over a definite period of time.

  • The role of a structured settlement Company: A good structured settlement company must be able to assist you from the moment you have agreed to receive a structured settlement from the losing party to the very day the last payment is made. A good company will also ensure that you are being treated fairly throughout the procedure.
  • Years in the industry: How long has the company been in practice? How many cases or individuals have it helped procure the best settlements for their needs? Can they furnish you with any references?
  • Fairness: If you’ve agreed to have a structured settlement, contact a company that specializes in such payment methods to help you through with the succeeding steps. The first task it faces is ensuring that the terms and conditions of the settlement are fair to you. Is the amount of monthly or annual payments fair? Are the interestrates too low?

To determine the capabilities of any company in this aspect, ask its representative to give you several proposals that it considers fair to both sides. The right company always comes up with the best and most practical solutions. While its able to empathize with what you are going through, especially if your loved one or the defendant had been seriously hurt, it will not let emotion cloud its judgment; it will not your emotions cloud your judgment as well. The right company will not be afraid to propose practical solutions to your dilemma and the following companies are the only option to this:

  1. DRB Capital
  2. JG Wentworth
  3. Olive Branch Funding
  4. SenecaOne.

If your loved one has only less than a year to live, a good company will insist on the minimum number of periodic payments. Such a method will allow you to make the most use of the settlement in providing comfort for your loved one in his remaining days. What’s more, it will prevent the insurance company from getting the better part of the bargain!

See also:

National Trade Association For Structured Settlements

Being a structured settlement broker in a world full of vultures – the judge will not protect you in all cases

Close-up of a Calculator and Pen on a Financial Newspaper. Blue-toned.

The structured settlement scheme was introduced as a beneficial scheme for the people. Those who found themselves in critical conditions could actually make profit out of their unfortunate situation through these plans. The schemes were however, obliterated in their essence, when factoring companies started to gain prominence. These companies started coming up with offers that became more and more lucrative as time went on but their credibility could never be justified. People were sucked into scams and shams which led to a slew of some very terrible events. People would think that involving a court in their transactions would protect them but this post has enlisted many cases where the inaction and wrongful actions of the judges have led to the victimization of certain people. It is sad to see this happening and also realizing that even judges will not protect you in certain cases.

Here is a list of many bad things that happened to people who wanted to sell their structured settlement. Things have gone terribly wrong with some people because the judges in these cases have worked negligently and without taking the best interests of the people involved in a case into consideration. These sad but true stories have been enlisted as follows:

  • Cedric Martez Thomas who is a New York native was skunked by Novation Funding LLC, a company which still continues to falsely advertise that it pays the maximum payouts. It had made more than 1 million profit dollar spread but despite its obviously illegal workings, it was approved by an Okeechobee Florida judge Gary Sweet in October 29, 2015. If this is not what you call a terrible awful deal produced by Novation, then we wouldn’t know what else. It is a very sad and unlawful event which should have been brought to notice sooner.
  • Lauren Ashley Nesbitt who is an Oklahoma native, was skunked by Seneca One for an estimate profit in excess of 1 million dollars. The workings of the company had been approved by Bryan County judge Mark Campbell. This is just another terrible and very shameful deal for the consumer, produced by Seneca One which still continues to work as a buyer of structured settlement payment rights.
  • Terrence Taylor is a victim of the Portsmouth Virginia circuit three ring circus which had been presided by former Judge Dean Sword Jr. The former judge is of the opinion that the 11 sale transactions in 2 years were not illegal in any way and were approved. This event has been a cover story in Washington Post in its December 2015 publishing and is currently in litigation.
  • D. is another Florida native who was rendered unemployable because of his disability.He is a young father of two children and was shamefully skunked by a Florida factoring company that was working closely and conspiring deviously with an investment bank. Thankfully, there is a pleasant scenario here as A.D. was referred to a lawyer who helped him a lot. He negotiated the the transfer order to be vacated and A.D.’s due to the lawyer’s efforts, all the payments were restored. This is one case which has gone right but it is not all right to ignore that Indian River Florida judge Cynthia Cox was the one who had approved the bad deal. It is obvious that she did an incredibly poor job of evaluating the best interest of A.D. and put the poor man in a state he didn’t deserve to be in.
  • X is a young New York native who was skunked by New York factoring company into placing almost two thirds of his net proceeds into a suspect investment scheme. The scheme lured him into this shady business as it promised to pay him an impossible interest rate if he simply complied with their conditions (which did not seem too difficult at that time). There were no returns and the leader of the factoring company was subjected to a FINRA ban. Also, fortunately X hired a lawyer who negotiated a return of the 1 million dollars he had supposedly invested in the factoring company. This transaction is very shady and despite its impossible claims, it was approved by New York judge. You really can’t trust judges these days, now, can you?
  • Prince George’s County Herman Dawson approved the lead paint structured settlement factoring deals which involved many Baltimore inner city minorities, out of which some were functionally illiterate. This scam involved offering sham independent professional advice to these minority groups and the whole event made a huge story. The story also made it to the front page Washington Post and motivated reforms and action in the state of Maryland along with a Maryland Attorney General lawsuit.

This is nothing and there are so many snippets of all the things that go on. Sadly, there is more bad news which will come out soon enough. It is really sad to see that the structured settlement secondary market has been such a shady scene from the beginning but the fact that in the coming months, some questionable judicial approvals will be brought to light only means there will be justice.

To conclude this, it is important to note that until there is licensing and regulation of sales practices and business conduct, the structured settlement industry as a whole will be questioned.…