by Structured Settlement Watchdog
What is a Cash Structured Settlement?
Is a Cash Structured Settlement a Myth or a Fact?
“AmericanLegalFunding.com Cash Structured Settlement Approved in 24 hrs”
FICTION/MYTH
- No such thing as a cash structured settlement
- If, as it appears, American Legal Funding is referring to a structured settlement factoring transaction it requires Court approval and that won’t be happening in 24 hours.
- If you do sell your payment rights for cash without Court approval there is a 40% excise tax the buyer must pay on the factoring discount. One way or another it will affect the amount of cash you receive if you’re the one selling your structured settlement payment rights.
“Get Cash Now. Apply for a Lump Sum Settlement Purchase of Your Annuity”
FICTION
- Peachtree should know better.
- Get cash now is a marketing term. A “cash structured settlement” is nonsense,
- Peachtree does not buy your structured settlement annuity contract. The annuitant does not own the contract and has no poweer to sell the annuity contract.
- If court approved, Peachtreet will buy your “payment rights” to complete what is known as a structured settlement factoring transaction.
Also seen on the Internet
“Cash structured settlement payments are insurance payments awarded by the courts” as a injury claim, vehicular accident, wrongful death, medical malpractice, or any other situation”
FICTION
- Cash is not a structured settlement
- Structured settlements are not awarded.
- Insurance payments are not awarded by the Courts UNLESS the insurance company was the Defendant and the Plaintiff received compensation from the Insurer as a result of an award. For example, a bad faith claim against an insurer. That does not mean that an insurer might not pay up on behalf of its insured, but that’s not what the plain language reads.
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