Folks sometimes lurch into tough financial situations which force them to withdraw saving pots and underwrite excruciating loans. In an ever-changing world, options now include fast payday loans online, converting savings portfolios such as 401 (k) and gold bullion. However, such methods do not reward you like a lottery winning as banks impose usurious interest rates. If you’re a payee of a structured settlement scheme, you can fine-tune a portion or the whole of your future payments into a lump sum. Structured settlements have rapidly emerged as a seamless means of passing on compensation money to personal injury tort victims as a future income stream rather than a lump-sum award. What’s more, the government has put in place a regulatory regime in the industry to ensure sellers do not fall prey to unscrupulous dealers.
Grace Khan became a beneficiary of a structured settlement in a tort lawsuit where she contracted dermatitis after wearing undergarments at a clothing retail store in New York. She had collected monthly installments and two annuities for three years when she found herself in a tailspin of a turbulent economy. A residence of Georgia, she sought to plumb the depths of the structured settlement factoring industry to trade in a portion of her future income in exchange for a lump-sum cashout. The Georgia Structured Settlement Act provides safeguards for sellers who want to convert their annuities into cash immediately.
Sell Structured Settlement
For sellers like Khan, the structured settlement Act in Georgia provides several safeguards to ensure they make an informed choice. Khan and the buyer of her annuity had to comply with a set of procedural rules to ensure the deal was beyond reproach.
Structured Settlement Annuity Buyers Have to Serve You With A Disclosure Statement
The disclosure statement provided to Khan captured specifics of her transaction, including the net value of the three payments she was offering, the amount she would receive and the discount rate employed. Khan endorsed the disclosure statement in writing before proceeding with the transaction.
Georgia’s SSPA Has A Waiting Period
Also known as the “freezing period,” this is the time when Khan independently assesses the transaction and decides whether to cancel or go ahead with the deal. After approving the disclosure statement, Khan was given a ten days window before entering into a formal agreement with the structured settlement annuity buyer.
A Cancellation Notice Served To Payees
The cancellation document disclosed a road map on how to vitiate the transfer and release agreement in a period of 10 days. The cancellation applies to a future court hearing by the payee. Khan wanted a lump sum to rein in mounting debts and expenses, and she chooses to proceed rather than cancel the agreement.
Structured Settlement Act in Georgia Requires Court Approval
Like other SSPAs in the US, the statute in Georgia has a rider on judge scrutiny to ensure the deal tilts the scales for the seller or the “best interest” test. The judge grilled Khan on the reasons why she had decided to dispose of her future payments, her plans on getting a lump sum payment and assessed the discount rate.
Rights of the Payee When Selling Structured Settlement Annuities in Georgia
In addition to disclosures, court scrutiny and freezing period, the Georgian statute protected Khan from incurring any expenses before executing the transfer agreement in writing. The law provides an additional 21 days after signing the contract within which the seller of a structured settlement can cancel the agreement. The notice was used as the cover sheet of the bundle of documents throughout the negotiations as required.
Leading Structured Settlement Funding Companies in the Secondary Market
Peachtree Financial Solutions is an experienced structured settlement factoring financing company that helps consumers to get the lion’s share for their future payments in a one-off lump-sum amount. They can act as your representative in court, liaise with your county superior court justice and expedite your transaction.
Fairfield Funding adheres by federal and state laws, sends you a transparent price quote and conveys vital documents, including a tailored transfer agreement, disclosures, and files everything in court.
JG Wentworth remains the industry’s most experienced buyer with two decades of expertise helping consumers of structured settlements attain flexibility. The company has a dense network of attorneys, actuaries and customer support to handle your deal more efficiently.