The law of negligence in personal injury cases involving psychiatric harm has always sparked confusion on the legal landscape. However, the orthodox approach in American and Victorian English courts to treat the claims as hostile and suspicious has long dwindled. The courts viewed the tort victims claiming compensation for psychiatric injury or mental illness as disgraceful, indicative of a lack of moral fortitude, and suspicious because the harm could be easily feigned. Today, US litigants have more confidence when lodging a lawsuit alleging nervous shock or any form of psychiatric harm as they can succeed in court. Nevertheless, the parameters of mental injury remain enshrouded in mystery and the legal system a lottery due to ambiguity.
Victoria April suffered nervous shock when the electric train she had boarded plunged into a life-threatening tragedy attributed to the traveling company’s negligence. April got compensatory damages to supplement and replace her lost income due to the company’s fault. However, the money would devolve to her in what is known as a “structured settlement.” The defendant bought a financial package from an insurer or annuity who granted her payment rights to an incessant stream of income subject to the terms of the underlying agreement. April recovered after three years and returned to her cosmetician business in Los Angeles. She felt she no longer needed the structured settlement payment in dribs and drabs. To get a lump sum, she would have to sell to a factoring company and adhere to the legal process.
Sell Structured Settlement
Choosing the ideal buyer of structured settlement payments
April knew how to hunt for the best deals online and browsed through the internet to pick out a company that would give the lion’s share of her payment rights. She also called an accountant who suggested to her several companies. April puzzled over the problem before the light suddenly dawned. Peachtree Financial Solutions showed a real interest as they did not pressure her with sale gimmicks she had encountered in the marketplace. They had plethora positive reviews, made references to previous sellers, had a 24/7 customer support and admonished her to seek independent professional advice.
Before the Court Approval Process-The Pre-Contractual Period
Once she accepted the quote, she received a contract offer and a bunch of documents to kick off the process factoring. Give that it would take up to two months to polish off the transaction, April requested for a cash advance from the buyer. It prevented her from starving into financial doom and gloom. Her legal representative obtained a court hearing date when she would appear to get court sanction.
Court Approval Process
The structured settlement funding companies undertake the role of filing the relevant documents in court. April only appeared for a split second before the judge to answer several questions. The court agreed to her request to sell the payment rights in exchange for the discounted lump sum. She needed to get her house in order now that she had fully recovered from the nervous shock. She projected to pour the proceeds of the sale into her Cosmetics business and pay off debts that would have brought it to its knees.
Do you pay any taxes or tariffs in a factoring transaction?
In January 2002, the US Congress repealed the Internal Revenue Code Section 5891 to justify a duty-free transfer of structured settlement payment rights explicitly. Court scrutiny incentivizes by the levying of 40 percent excise tax on all unapproved transactions. However, the lump sum cashable in the transaction would fall under taxable income once invested.
What is the Independent Professional Advice Proviso?
The SSPAs or legislations governing the sale of payment rights under a structured settlement require structured settlement purchasing companies to recommend her to an independent professional. Since she had an attorney as her representative in the legal process, she waived the right to counsel in writing and an estoppel letter filed alongside the petition to streamline the court approval.
Nationally Renowned Structured Settlement Buying Companies
Peachtree Financial Solutions has helped scores of clients get their bucks sooner by purchasing future payments at a discounted lump sum; your transaction undergoes court approval and review by the judge while their price offer impels you to sell on the spot.
SenecaOne gives clients insightful advice when making sensible fiscal decisions before making an agreement to trade in a portion or the whole of your structured settlement payment rights. They deploy a representative throughout the entire process to safeguard consumer rights, expedite the transaction and adhere to timeframes.
Stone Street Capital provides a novation representative for assessing your future income stream and entering a bargain, files a petition in a court of competent jurisdiction and disburses your lump sum shortly after the court gives a qualifying order. The company has a clean and impressive discounting scale that ensures you get a substantial percentage of the payment.