Structured Settlements

Through our established guidelines and vast experience, Prosperity Partners, Inc. is well equipped to handle your structured settlement. With customer service and education at the heart of everything we do, we specialize in helping individuals who want to sell structured settlement payments, but don't want to be treated as just another number in some business. We will fully explain the entire process to you, the laws that are associated with selling structured settlement annuity payments, the due diligence procedures, and we can structure your transaction that best suits your short term and long term financial needs. Whether you wish to sell structured settlement payments because you need cash now or you simply do not want to wait out the terms of your settlement, we are here to help.

Selling structured settlement payments may be done for a variety of purposes including, purchasing a home, paying off high interest credit card debt, buying a car, going to school, moving expenses, medical expenses, starting a business, or anything else you wish to do. Since Federal and State Laws require court approval of the sale of structured settlement annuity payments, by tailoring the transaction which specifically addresses your needs up front, we can minimize any potential documentation or court delays and get you funded faster.

What is a structured settlement?

A structured settlement is a financial or insurance arrangement, including periodic payments, which a claimant accepts to resolve a personal injury tort claim or to compromise a statutory periodic payment obligation. Structured settlements are sometimes referred to as "periodic payments". Generally, Structured Settlements are paid out in either a lump sum upfront, or future payments ("periodic payments") paid out through the purchase of an annuity policy.

What Laws regulate the sale of structured settlement annuity payments?

Federal and State Laws regulate the sale and assignment of future structured settlement annuity payments.

Federal Law Internal Revenue Code Section 5891 entitled "Structured Settlement Factoring Transactions" deals with the potential excise tax imposed on the factoring discount, when there is a purchase of structured settlement payment rights and the exceptions to the excise tax. It is important to note that by complying with the appropriate federal and state laws regulating the sale, there will be no excise tax imposed on the transaction.

State Laws 47 states have structured settlement protection acts which specifically regulate the sale, defining the required disclosures, as well as the procedures for obtaining court approval of the assignment.

What is the standard procedure for purchasing structured settlement transactions?s

Once a customer has verbally accepted our offer to purchase, we will begin our process to complete the transaction. The structured settlement process includes, but is not limited to, the following steps:

Step 1: Execution of appropriate documentation:

1A. Execution of all Disclosure Statements required pursuant to each applicable State statute

1B. Execution of all Transfer documentation assigning the payments

Step 2: Due Diligence process to obtain all underlying settlement documentation, as well as standard underwriting documentation

Step 3: Court Order process, from filing of the court action, required service timeline, to obtaining the signed court order from the judge.

Step 4: Insurance Acknowledgement and/or Stipulation Agreement to obtain the approval of the assignment.

Due to variances in many individual state laws, the overall timeline for completing a structured settlement transaction is between 30 and 60 days from the time everything has been signed and all documents have been delivered to us.

Prosperity Partners, Inc. maintains the experience and resources needed in order to structure a transaction which best suits your current financial needs, as well as comply with the Federal and State laws regulating the sale of the payment(s). To learn more about your available options to sell structured settlement payments and how to get cash now for settlements, call us today.