Non-Transfer or Assignment Language
Some original structured settlement contracts may have language in them which says that you cannot sell or transfer payments, called non-transfer or non-assignment language. Sometimes, the judge will uphold such language and not allow anyone to buy structured settlement payments from you.
As Patrick Hindert, Managing Director of S2KM Limited and a lawyer highly experienced in the settlement industry, said, “Anti-assignment’ clauses in settlement documents are enforceable and, if enforced, could prevent structured settlement recipients from selling their payment rights.” For example, one Florida court case (Rapid Settlements, LTD., v. Kimberly Dickerson, et al.) made it up to the court of appeals, and still the judge declined the sale, saying that the sale was clearly against the agreement. But judges do not always uphold such language.
Thus, even if your paperwork has such a clause it may be worthwhile to consult with a Strategic Capital representative and see what they say about your chances of approval.