The golden rule that you are to love your neighbor as laid down in religious scriptures has its spitting image in our courts. In the eyes of the law, the neighborhood concept has a broader meaning beyond living next door or adjacently to your tort victim. The word “neighbor” refers to the tort victim or end recipient of the outcomes of negligent conduct. Occasionally, reckless behavior leads to prolonged nervous shock for fear of injury to the actual victim or close persons such as family members. Some tort victims suffer nervous shock due to imminent fear of injury or death happening to someone else like a family member. They can recover personal injury compensation as long as they were within the vicinity of physical risk. Substantial amounts of money from compensation in tort normally fall under structured settlement schemes. Structured settlements devolve fixed future periodic income guaranteeing victims of nervous shock security instead of a lump-sum award just like lottery winnings.
In June 2011, Charles Bloomberg was standing near his house window feasting on the outdoor panorama and his daughters when a runaway automobile lurched into his house. He developed nervous shock in fear that the vehicle had ripped through where his children were playing. After a jury trial, he got compensation for pain and suffering, lost employment and other losses. Three years down the line, his family started to experience financial difficulties due to inflation and college tuition fees, Bloomberg’s psychiatric therapy and other exigent demands. He had to sell a portion of his future income stream from the structured settlement payments.
Sell Structured Settlement
Do Structured Model Settlement Protection Acts (SSPAs) Apply Across All US States?
SSPAs fall under the consumer-protection regime with the sole purpose of providing an extra safeguard to forestall annuitants from squandering their future income stream. The statutes encourage the seller to make well-informed choices and map out a procedural and substantive procedure. Bloomberg appeared before a judge to demonstrate the transaction was in his best interest and that of his dependents. The buyer of structured settlement annuity benefited from compliance with SSPA and obtained a qualifying order from the court thereby avoiding a 40% excise tax penalty.
Could He Be Stopped By Annuity Issuers or other “Interested Parties?
Bloomberg’s annuity issuer did not deny him the right to sell his structured settlement payments. Annuity issuers have varying opinions regarding the grant or denial of the transfer of vested payment rights. However, objections can arise where the annuity is not assignable or periodic payments flow from worker’s compensation claims and other grounds.
Similarly, if Bloomberg or his estate were confirmed to be insolvent, the trustee could trace the proceeds of his structured settlement annuities for sale to meet the demands of his creditors. Unlike the rigor applied by judges to determine the necessity of selling his structured settlements, the court always holds its in the best interest of creditors to sell a bankrupt’s future income streams.
Nebraska Has Better Consumer Safeguards for Sellers of Structured Settlement
Bloomberg was selling his structured settlement payment subject to the SSPA of Nebraska. In addition to court approval, the only exception is the restriction on transferring workers compensation annuities. The structured settlement companies must notify him of his right to independent professional advice. The discount and processing fees cannot surpass the maximum interest rates set for consumer loans.
Is It Prejudicial For Attorneys of the Structured Settlement Buying Company to Represent Bloomberg?
Of course not, in the factoring transaction, the attorneys of the annuity buyer could act for him to expedite the process as both parties have a common intention. The only rider is the need for consent from Bloomberg. It also amounts to recusal by the attorneys who acted in the transaction in future litigation between the two parties.
Structured Settlement Funding Companies at the Top of the Pecking Order of Factoring
Olive Branch Funding is a reliable company with long-drawn-out experience, ISO Certification standards, and digitized processes with a free offer or price calculator online, Live Chat customer care and familiarity with SSPAs and cross-cutting federal and state laws.
Fairfield Funding can offload the laborious process of preparing the paperwork such as court filing documentation, agreement, and release, disclosures, service notices as well as court-related requirements before hearing.
Woodbridge Structured Funding acts as your legal representative before the judge to speed up your factoring transaction, has low discount rates and processing fees as well as clear-cut procedures.