Understanding the judge’s role when you want to sell a structured insurance settlement
Many people who want to sell sell structured insurance settlement payments do not even understand why court approval is necessary, much less what the role of the judge is. So let’s consider these two issues.
The Need for Court Approval
Judicial approval is required to sell structured insurance settlement payments throughout the United States. This requirement is written into structured settlement factoring Federal law, as well as most state laws. As we said before, in most states you, the seller, must appear in court to answer some questions.
The basic reason for this required approval is simple: To protect people from themselves and make it a bit harder to sell a structured settlement. Really. The government feels that these settlements are good for you, that they offer security in difficult times. They feel that you should keep them. So, before you can sell one, they want a court to look at your reasons, and the sale, ensure that you understand what you are doing, and check that you are not being taken advantage of.
The Role of the Judge
The role of the judge is to approve or deny your sale; it’s that simple. They usually do this by asking you questions to ensure that you understand the terms of the sale, as well as the ramifications. See the Strategic Capital website for a list of questions that the judge might ask you to ensure what they consider the best structured settlement buyout.
Recognize that the judge is there to help you!
While many people feel intimated at the idea of having to appear in court or talk to a judge, just remember that the judge is actually there to help you. His or her goal is to protect your interests and help ensure that you are not being taken advantage of. If you recognize this positive role you may feel less intimidated and bothered by the court appearance.
Reasons for Declining a Sale
The biggest reason that a judge will decline your request to sell a structured insurance settlement is if he or she feels that the discount rate of the structured settlement factoring company is too high. That is, they feel that you are being charged too much to sell your payments. A judge may also deny if they feel that you are simply making a bad decision; that selling your payments is not a good idea. Of course, a judge will most certainly deny the sale if you change your mind about the sale at the hearing; this happens, sometimes, when the judge questions a person and they think more deeply about it.
A judge may also deny if you have sold too many payments in too short of a time, feeling that you are managing your money poorly. And judges often deny sales when a parent is trying to sell payments that belong to their minor child. Of course, anything can impact a sale, including, simply, the judge’s attitude towards structured settlement payments and sales. But usually, if you have a good reason to sell and can show that you can live without the payments you are selling, the judge will approve your sale. At Strategic Capital almost all of our sales are approved, easily.