How a Lawyer is Critical to the Process of Considering Selling Your Structured Settlement in California
Before 2010, if a defendant was court ordered to buy an annuity in court to pay for the plaintiff’s injury…there would be companies, called “factoring companies” that would be approaching the defendant and suggesting they sell their newly obtained structured settlement for “cash now” at a highly discounted rate. Courts saw this happening, especially in California. The judge and lawyers spend a great deal of time designing a future plan for the injured party; like an artist creating a painting. For years the court system in California stood by and watched their hard work – that was in place for the injured parties’ protection – be thrown away. The factoring companies walk away with a major profit, the injured party walks away with a lump sum of cash that is significantly discounted, and no plan for the future and the courts’ time has been wasted. This went on for years. It got so bad that California, made laws against it. Now the consumer is protected.
The laws exist in the California Senate Bill SB 510, and were codified in great detail in the California Insurance Code Sections 10134-10139.5. In lay-men’s terms this means, “… the courts have explicit guidelines to decide whether a buyout is appropriate.”, PRLog.org, “Gov. Schwarzenegger Signs Senate Bill 510…”, Oct. 13, 2009, http://www.prlog.org/10374780-gov-schwarzenegger-signs-senate-bill-510-provides-greater-protection-to-structured-settlement.html
There are literally hundreds of considerations a judge takes when looking at your desire to sell your structured settlement. Eugene Ahtirski helped in getting that Senate Bill passed. Wouldn’t you want a lawyer that is proactive and involved in the law making that surrounds your money?
Selling Your Structured Settlement in California