When it comes to money, how you use is often up to you. But this is not always the case with structured settlement payments. Most states and countries have now enacted laws that govern how structured settlements should be handled, including transfers/sales. All proposed structured settlement transfers need to be approved by a judge in a court of law. The judge will sign off a structured settlement sale, after carefully looking at its contractual details and check that it complies with the applicable regulations.
How To Get A Judge's Approval Of Settlement Transfer
Can a judge block a structured settlement sale? The simple answer is yes. There are many reasons why judges deny selling structured settlements. So if you are wondering if your structured settlement sale will go through successfully, consider the following possible reasons why the judge may halt your structured settlement transfer process;
- Keeping your best interests in mind: Before enactment of structured settlement transfer laws, some companies preyed on desperate and naive consumers convincing them that structured settlement sale was the best solution to their financial predicament. So now with the laws in place, consumers are protected against these companies. The case has to be heard by the judge, he/she will determine if the sale is in your best interest and whether or not to allow it to move forward. If the judge detects manipulation by the buyer, he/she will deny the transfer.You may have indicated that you have debts to settle or some business financial emergency; but after looking at your details carefully, the court may decide that with a little effort, you can sort those financial shortcomings without having to sell your structured settlement.
- The company representing you: You may have tied up all the loose ends on your side; however, the company that you are using to file your request may be the actual issue. When the judge is going through your contractual details for structured settlement transfer, they look for of the transfer as well as how much it will cost you the push this it through. Some companies charge extremely high for this service, and the judge will try to make the process as fair to all parties involved as possible. If they have a reason to believe that the company is charging way more than it should, they will halt the sale process. Your option here could be to either renegotiate the terms or look for a better company like DRB Capital which is the best structured settlement company in the market today.
- Best legal practices (Due process): A judge can also deny a proposed structured settlement transfer for reasons related to best legal practice. Structured settlement transfers have a set of rules and conventional standards that govern them. This deal can be rejected if the structured settlement buyer didn’t prepare well enough for the court, overlooked statutory requirements or cut procedural corners of the structured settlement transfer process.
- Seller’s current financial status: The judge is likely to deny you the sale if they think the transfer will negatively affect your dependents. For instance, if you are a single mom who just lost her job, the judge may deny the sale. Why? The judge may argue that if you sell your payments and spend all the money before you get another job, the situation might worsen. So basically the judge takes a comprehensive look at your financial situation and tries to make a ruling that will make you financially better off in the long run.
- Other considerations: There are many other reasons why judges deny selling structured settlements. For instance, if you are younger (less than 25 years old), the judge is less likely to approve your proposal. The general thought is that younger people are highly likely to make unwise decisions regarding their finances. Selling your structured settlement payment to invest’ in sports betting, the stock market or such other ventures may be interpreted by the court as unwise. If you display an inability to manage finances, don’t produce proof of income or can’t sufficiently explain how the money will be used, chances are your request will not be approved.
What next after denial?
Just because your first structured settlement transfer request has been denied doesn’t mean that all is lost. All you need is more research, preparation, and consideration about your deal. Take a closer look at the judge’s ruling to find out why your request was denied. Take what the judge said into consideration and determine your next based step. It is possible that you might find a way of sealing the loopholes in your application and resubmit successfully, but maybe selling your structured settlement payments is not the best decision for your current financial situation.