A Structured Settlement refers to a compensation scheme in tort claims that guarantees a future income stream to the plaintiff in the form of cyclic payments instead of a one-time lump sum amount. Structured settlements have hit home as the most attractive tax-free investment vehicles in the securities markets. All structured settlements are characterized by the time value of money as a central factor in determining their worth. The assessment of the present value of money gets even more complicated when income tax is factored in. Although structured settlements do not fall within the realms of income tax, the intangible right has forced most holders to put their thinking cap on for more flexibility.
Augustus Perez was injured in a boat wreck falling on him in 1999 leading to a personal injury lawsuit against the owner. He was successful in a settlement where got guaranteed monthly payments and lump sum annuities totaling $900,000. Born in Illinois to parents of Mexican origin, he did not complete college and had to work as a coal miner. In 2014, the coal mining sector was facing a downward spiral and increased government regulations squeezing Perez and his colleagues to the bottom of the economic heap. Despite his attempts to draw his horns in and amass savings, Perez and his family had almost lost hope of financial security. But things took a twist in 2015 after the Trump win and resurgence of coal mining. Perez needed a few bucks to plunge into the mines again. He decided to cream off a segment of his structured settlement payments for a fast and thick lump sum. However, it would not be a lottery, and the rules had to come into play.
Sell Structured Settlement in Illinois
Illinois Structured Settlement and Annuity Transfer Laws
Perez got shielded against exploitation in the secondary structured settlement market just like the original kitty. The structured settlement company he wanted to sell to delivered to him core documents 24 hours after retrieving a free quote and price offer. Disclosures drew attention to the net lump sum payable, discount and annual rates applied, and an itemization of all processing fees.
“Interested Parties” and their Role in the Factoring Transaction
Perez’s transaction was a multilateral deal involving the consent of the annuity issuer and “obligor” or annuity owner. Referred to as interested parties, they have to be served at least 20 days before the court hearing with documentation regarding the transaction. They also have their day in court and can raise objections to the deals. Normally, annuity issuers will either object or remain neutral. However, Perez had nothing to worry about as the annuity’s issuers cannot determine the fate of his transaction. The final decision lay with the superior court judge who overruled all objections as frivolous and vexatious.
Illinois Court Approval Mandatory
Illinois became the first state to legislate an SSPA in 1998 enjoining purchasers of structured settlement proceeds to seek court approval. The court process is rather short-lived and sails through depending on some factors. The judge who handled Perez’s hearing found the sale was in his best interest, he was admonished to obtain independent professional advice, and the transfer did not flout court orders or law. Subsequently, his transaction received a final qualifying order.
Did Perez Reap the Harvest of His Structured Settlements Earlier?
Of course, his deal sailed through court, and he received his lump sum afterward. Perez felt enmeshed by the structured settlement payments’ lack of liquidity. He decided to sell a substantial portion of his income streams as the court regulations make money illiquid for a second bite of his pie. Perez could now meet household expenditure, take his family to their relatives in Mexico and has an up and running coal mining contracting company. Perez thinks a bird in the hand is worth two in the bush; he could not risk awaiting payments for his lifetime while his family lived in anguishing poverty.
Renowned Structured Settlement Funding Companies
Olive Branch Funding is well-versed with court procedures, files your application before the judge and expedites your factoring transaction to devolve a lump-sum award in the shortest space of time.
Woodbridge Structured Funding crafts your agreement from scratch to reflect your future payments value. They have customer friendly terms and expedite the process to ensure you stump up the lowest costs.
Stone Street Capital will give you an immediate price offer as your buyer online from any corner in the US. The company adheres by the industry’s finest practices and high quality servicing to give you memorable customer experience in a bureaucratic process.