Sell Structured Settlement The Selling Process 3

Question 1

What is 'shopping around' most important for when selling structured settlement payments?

Accepted Answer

Obtaining quotes from multiple factoring companies to compare discount rates and net offers

Answer

Finding the fastest processing time

Answer

Getting the highest possible lump sum regardless of fees

Answer

Selecting the company with the lowest court filing fees

Question 2

Which court typically has jurisdiction to approve a structured settlement transfer in the US?

Accepted Answer

State court in the payee's state of domicile or where the settlement was established

Answer

Federal district court only

Answer

The court that originally resolved the personal injury case only

Answer

Any court in any state the payee chooses

Question 3

After the court approves a structured settlement transfer, how long does it typically take for the payee to receive their lump sum?

Accepted Answer

Within a few days to a few weeks after the order is finalized

Answer

Immediately at the hearing

Answer

90 days after the hearing

Answer

One year after court approval

Question 4

What is a 'rescission period' in a structured settlement purchase agreement?

Accepted Answer

A window of time during which the payee can cancel the agreement without penalty

Answer

A period during which the factoring company can cancel the deal

Answer

The time the court takes to review the petition

Answer

The period before the first payment under the annuity begins

Question 5

Why might a court deny a petition to transfer structured settlement payment rights?

Accepted Answer

The transfer is not in the best interest of the payee and any dependents

Answer

The factoring company offered too high a discount rate

Answer

The annuity issuer objects to the transfer

Answer

The payee lives in a different state than where the case was filed

Question 6

What does the 'effective annual rate' help a payee evaluate when selling structured settlement payments?

Accepted Answer

The true annualized cost of giving up future payments in exchange for a lump sum

Answer

The annuity issuer's investment performance

Answer

The tax liability on the lump sum received

Answer

The court filing fee schedule