by Structured Settlement Watchdog
I received a call an Executive Life of New York annuitant expressing concern about selling their structured settlement payment rights to a factoring company. They were informed by the factoring company no decisions could until after August 10, 2011. What might the reason for this you say?
When you want to sell there must be someone who wants to buy what you're selling
In the case of structured settlement payment rights, a willing buyer will offer you a discounted lump sum of cash in exchange for the transfer of the legal right to receive some or all of the future structured settlement payments you are scheduled to receive.
A court must approve a structured settlement transfer as being in your best interest (and the interest of your dependents) in accordance with your state's structured settlement protection act (at the time of publication, 47 had protection acts). When evaluating the feasibility of the purchase, the buyer consider, among factors, the creditworthiness of the annuity issuer, just as you (or individual who initiated the lawsuit or claim on behalf did when the structured settlement was originally established.
After the New York Superintendent of Insurance Obtained an Order to Show Cause in December 2010, setting a July 1, 2011 deadline for submission of a proposed liquidation plan for Executive Life Insurance Company of New York (ELNY) and August 1, 2011 as a deadline for submission of a proposed liquidation order if there were no liquidation plan.
In late June 2011 the Superintendent moved to postpone the deadline for filing a liquidation plan from July 1 to August 10, "in order to present a comprehensive and consensual Proposed Plan of Liquidation that maximizes the potential benefits for ELNY's structured settlement and other annuitants." (emphasis added). At a hearing June 30, 2011 the Nassau County Supreme Court granted the Superintendent's motion and entered an order (i) extending to August 10, 2011, the deadline for filing an agreed liquidation plan, and (ii) extending to September 15, 2011 the deadline for filing a liquidation order in the absence of a plan.
Hopefully by August 10th, when the '"curtain is pulled back", all will be more clear.
Be mindful of the situation with Executive Life of York when encountering advertisements promising "cash now," "all your money,"cash today," or "instant cash" in connection with your structured settlement payments. It is possible that you may not even be eligible to receive an advance until August 10th. Under normal circumstances, some might provide a small advance, typically ranging from $500 to $2,000, prior to court approval.
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