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

Comparing offers from multiple factoring companies is critical because discount rates and fees vary significantly, directly affecting the net cash the payee receives.

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

Transfers are approved by state courts — typically in the state where the payee resides — as each state's SSPA grants jurisdiction to its own courts.

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

Once a court order is entered and any appeal period passes, the factoring company typically funds the lump sum within a few days to a few weeks.

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

Many states require a rescission period — typically 3 business days or more — during which the payee may cancel the transfer agreement without any penalty.

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

Courts apply a 'best interest' standard and will deny a transfer if the judge finds the sale would harm the payee's or their dependents' financial well-being.

Sell Structured Settlement Practice Test

Sell Structured Settlement Practice Test

Sell Structured Settlement The Selling Process 3