by Gene Banyan

Structured settlement companies, or factoring companies, trade lump sums of cash to people who have structured settlements from a successful lawsuit. If you want a large sum of money, and are willing to trade your future rights to more money, for cash now, then this might be an option for you.

There are some very important financial matters that you should be aware of. If you do need money for your structured settlement payments, realize that you will be transferring ALL of your future earnings to the brokerage company.

Why do you see the commercials for payment transfers on TV often? They are making a killing in this business. Most annuity brokerage companies do business ethically, however you should remember that its in their interest to get your money. They want your payment rights. So, no matter how friendly the reps may sound ” they are definitely NOT your friends. They just want your money.

So unless you are really on hard times or you MUST have the money now or the house will be foreclosed, it’s in your best interest, financially, to tough it out and keep your payments.

Structured settlement companies profit, in part, by paying people like you a lump sum of cash that is less than the discounted face value of your annuity payments.

It is common knowledge that many of the structured settlement companies have abused their consumers. Because of this abuse from structured settlement companies, now guaranteed favorable tax treatment is now at your disposal, if you wish to transfer your structured settlement payments.

In CA, the Structured Settlement Transfer, SSTA, says: (1) The seller must receive disclosures about their structured settlement payments, (2) notice to the Attorney General (3) court approval.

The transfer of your structured settlement payment rights will require the annuity brokerage or factoring company to file petitions in the county where you live. To grant the payment rights for approval, the court must find:

(1) the transfer of structured settlement payment rights is in the best interest of the transferor;

(2) the transferor has been advised in writing to seek independent professional consultation and either has received that advice or decided to waive it;

(3) the transferor has received the disclosure form;

(4) the transfer does not interfere with any court order;

(5) the seller of payment rights understands the terms of the agreement and disclosure form; and

(6) the structured settlement seller understands his or her right to cancel the transfer of payment rights and does not want to do so.

About the Author:
It’s no secret that getting Cash for Structured Settlementss and annuities is tempting. Before you do, be sure to visit Cash for Structured Settlements, and Sell Structured Settlement for more FREE information like this.

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