Court-Order Statutes for the Sale of Structured Settlements Seen Enforcing Welfare & Support Payment Obligations

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Since the development of legislation 10 years ago regulating the sale of structured legal settlements, the judiciary has focused on the “best interest” standard of the petitioner, according to J.G. Wentworth.

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As a result, our support for judicial review remains as strong as ever and our experience across tens of thousands of transactions is that consumers, once they are educated on the value of that review in protecting their own interests, agree.

But the court order process for structured settlement sales also takes into account the interests of dependents of the petitioners. According to Keith Mayer, vice president of customer service for J.G. Wentworth, "When we purchase structured settlement payments, the courts are directing that a portion of the proceeds be allocated to various state human and child welfare service agencies. These funds represent back-dated obligations that otherwise probably would not have been paid."

Mr. Mayer said that from 2003 to 2007, J.G. Wentworth made more than $2.7 million in payments to state agencies on behalf of its client's payments, primarily comprised of past due child welfare and other support payments.

"Development of this legislation represents one of the rare occasions when the interests of the judiciary, state regulators, business and consumers lined up nearly perfectly," said Mr. Mayer, who has worked with structured settlement owners before and after the advent of judicial regulation. "As a result, our support for judicial review remains as strong as ever and our experience across tens of thousands of transactions is that consumers, once they are educated on the value of that review in protecting their own interests, agree."

For more information about structured settlements as well as individual state statutes governing their sale, go to J.G. Wentworth's Structured Settlement Resource Center (http://www.jgwentworth.com/Structured-Settlement/Structured-Settlement -Information/Default.aspx). (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

About the J.G. Wentworth family of companies

J.G. Wentworth, Inc., based in Bryn Mawr, PA, is the nation's oldest, largest and most respected buyer of deferred payments for illiquid financial assets like structured settlements, annuities and, through dedicated subsidiaries, life insurance policies. Since 1992, J.G. Wentworth has purchased over $3 billion of future payment obligations from consumers and is also the nation's largest securitizer of structured settlement and annuity backed notes. The company's notes are rated AAA by Standard & Poor's Corporation.

For more information about J.G. Wentworth, go to http://www.jgwentworth.com.

KEYWORDS:  structured settlement, annuity, specialty finance, life insurance, illiquid financial assets, annuities

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Rosalia Scampoli
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