Do you have structured settlement payments? Would having cash now benefit you better than waiting for the small payments to trickle in? If so, then selling your structured settlement payments may be the best solution, however is it in your best interest to sell your payments?
There is a set of rules that must be followed in order for you to sell your payments. The rules say that you must have a judge review your transaction and determine that the sale is in your “Best Interest“.
Consider this example:
Meagan wants to go to cosmetology school so that she could provide a better future for herself and her two small children. Also, She had some medical bills that she needed to pay off and finally needed to buy a reliable vehicle so that she could have a way to get to and from school and work. Here are that
- The cosmetology program that Meagan chose will cost her $13,581.00.
- She found a car that she could buy for $9,583.00.
- Paying off her medical bills would cost her $2,438.00.
- Meagan needed $25,602.00 to be able to better provide for herself and her children.
- Meagan has a structured settlement that she received after a medical malpractice lawsuit.
She is scheduled to receive the following payments:
- $100,000.00 due in 2022
- $150,000.00 due in 2027
When Meagan called Mainstreet, she and Mainstreet Funding worked together to help her develop a solution, selling a minimum amount of her annuity to fit her need, while keeping in mind her best interests. The deal was for her to get the money she needed and keep $50K of her annuity in 2022 as well as all of her payment in 2027.
What happens next?
After agreeing to this offer, Mainstreet sent Meagan a disclosure statement that showed her the amount and due date of the payment she agreed to sell and the amount she was going to receive from Mainstreet for the payment. Since Meagan lives in California, she has to follow the rules for selling structured settlement payments in California, which say that she needs to wait at least ten days before she signs a contract to sell her structured settlement payments. After Meagan signed the contract to sell her structured settlement payments, Mainstreet filed a petition with the court in the county in California where Meagan lives asking for a structured settlement hearing in front of a judge. (Make sure to read our article about the process of selling structured settlement payments for more information.)
Because the rules for structured settlement transfers in most states require that the judge make a decision based upon the best interest standard, Meagan needed to tell the judge why she believed selling her settlement payment was in her best interest now instead of waiting until 2022.
In structured settlement transfers, it’s not just your best interests that the judge must consider, it’s the best interests of your children and any other dependents you may have. The judge may consider whether selling your structured settlement payments would cause financial hardship for you and your children. The judge will most likely consider the effects of the transfer on your needs now and in the future, and whether selling your structured settlement payments will cause any harm to you or your dependents now and in the future.
What did Meagan do to show the judge that selling her structured settlement payments was in her best interest?
One of the documents that the judge reviewed is called the Affidavit in Support. This was her written testimony to the judge explaining why she felt that selling her structured settlement payments was in her best interest. Meagan explained to the judge that she would be able to pay her tuition so that she could get a better job to provide for herself and her children now and in the future. She would also have money to purchase a car that she could count on to get her to and from school. The money left over would be used to pay off her past medical bills, leaving her debt-free. Considering that Meagan wanted to better her life, the judge approved the transaction as being in her best interest.
Here at Mainstreet Funding, we want to make sure that when you choose to sell your structured settlement payments, that you experience success by making sure we always look out for your best interest.
Call one of our friendly and knowledgeable pricing specialists today at 1-877-919-8003. Or, you may request a free, no-obligation quote right here on our website.