The simple answer is yes a judge must approve your transaction to sell your structured settlement based upon the structured settlement protection act that went into place around 2002. This statute was designed to protect you with a series of safeguards including disclosures, waiting periods and finally judge approval.
It does seem strange that you get credit card offers filling up your mailbox each month with pre-approved displayed on the front of the envelope yet no one is telling you whether you can sign the application. For that mater most people have three or four cards in their wallet with huge limits with little or no oversight. So then why do you have to go see a judge to approve your structured settlement transaction and jump through so many hoops to get your structured settlement cash early? This is a good question and one that many are asking who have structured settlement payments, but need cash for a car, home, pay bills or many other important reasons.
The simple answer is to protect you. Which means ensuring that you are receiving all the information about the transaction clearly without anything being hidden from you.
First – The statute requires a disclosure statement to be sent to you first, before signing a contract. The disclosure statement shows you the payments that you agreed to sell, the amount that we agreed to pay you and if any costs are applicable to your deal. In our case, we do not charge costs. The disclosure should also recommend that you seek independent professional advise, before completing your transaction. In most states, it is not a requirement to get independent professional advise, however it is recommended to help ensure you receive a good deal and that your financial future is secure also.
Second – The statute requires a mandatory waiting period between the time you receive a disclosure and the time you can enter into a contract. This waiting period is designed to make sure you have enough time to review the disclosure and get any questions answered before being obligated under a contract, or what the industry terms a transfer agreement. This waiting period helps to ensure you are not feeling pressured into signing a contract that you are not comfortable with signing.
Third – The statute requires that you receive approval of your structured settlement transaction from a judge in your area. The judge will review the transaction and approve it based upon the following criteria.
There are other reasons that judges look at before making a decision, however these are the ones you see if most of the cases.
We, at Mainstreet Funding, believe this statute was a great addition to our industry because it promotes authentic and ethical business. We believe each person that sells their payments should receive a great deal, be fully educated on their decision and do so in a no pressure friendly environment. To learn more, please contact one of our friendly and knowledgeable structured settlement or annuity specialists today at 1-877-919-8003.