If you want a cash advance on structured settlement payments you need to understand the law. In 2000, the National Structured Settlements Trade Association and National Association of Settlement Purchasers agreed on language that was designed to protect the consumer when selling their structured settlement payments for cash. This language is referred to as the federal “Structured Settlement Protection Act” and 47 states have adopted laws that are closely aligned with the model statutory language. Now, anywhere in the U.S.A. you can get a cash advance on structured settlement payments.

State Law

The District of Columbia, New Hampshire, Vermont, and Wisconsin are the only four jurisdictions that have not enacted their own Structured Settlement Protection Acts. But does this mean you can’t get a cash advance on structured settlement payments? Read on.

Annuitants (sellers) who live in the District of Columbia, New Hampshire, Vermont, or Wisconsin might reasonably be worried that if their state has no structured settlement protection act. However, the good news is that people in these states are able to sell and transfer their structured settlement payment rights under the Structured Settlement Protection Act of the State in which the insurance company who makes the payment is located.

The federal law governing the transfer of structured settlement payments, Internal Revenue Code Section 5891, requires that every transfer of structured settlement payment rights must be approved by a court order.

And the same law legislates where the court order must be obtained: in general, IRC Section 5891 requires that the court order be obtained in a court in the state where the annuitant lives in accordance with the state’s Structured Settlement Protection Act. However, if there is no Structured Settlement Protection Act in the state where the annuitant lives, then the court order can be obtained in the state where the insurance company is located, in accordance with the Structured Settlement Protection Act in that particular state.

Can I Take Out a Loan against My Structured Settlement?

At Strategic Capital we are often asked if one can take out a loan against their structured settlement; some people want to take a loan because they think it will allow them to avoid taxes or to skip the court approval stages. While the federal statute does not mention loans, at Strategic we believe that loans usually are not necessary to avoid taxes as most injury settlements are tax free. In addition, we believe that a loan against a settlement would require court approval, just as a sale of payments does. At Strategic Capital we do not make loans against structured settlement payments; in fact, making loans is very unusual in the industry. But while you can’t get a loan, you can get a cash advance on structured settlement payments by selling your payments to us.

Strategic Options

So, if any structured settlement annuitant is currently living in the D.C., New Hampshire, Vermont, or Wisconsin, they don’t need to worry about not being able to sell their structured settlement payments for a cash lump sum. All they have to do is to contact Strategic Capital and we will obtain the court order from the court in the state where their insurance company is located.

At Strategic we work with you to ensure that you understand the law and the process. We help you to make the right decision for you and get a cash advance on structured settlement payments, if you need it. Please call us should you have any questions or inquiries about any selling your structured settlement payments and the process involved –
1-866-256-0088.