States With No Structured Settlement Protection Act
The National Structured Settlement Trade Association and National Association of Settlement Purchasers adapted the Structured Settlement Protection Act to serve as a common model for all States in ruling requests to transfer rights of structured settlement future payments. Since then, states have adapted the model and most have amended to create their federal laws.
The District of Columbia, New Hampshire, Vermont, and Wisconsin are the only 4 jurisdictions that have not enacted their own Structured Settlement Protection Acts.
This has been a source of concern to many sellers who live in the said states and owns a structured settlement. However, the law has been able to extend the protection even in states that have not enacted their own structured settlement protection act. If you happen to live in the District of Columbia, New Hampshire, Vermont, or Wisconsin and would like to sell your structured settlement, you can do so in the state in which the insurance company who makes the payment is located.
The federal law governing the transfer of structured settlement payments, Internal Revenue Code Section 5891, clearly requires all transfer be government or court approved.
There is now no cause for anyone to worry. The federal law that governs their factoring company will extend to them the same protection. If you are selling your structured settlement, the factoring company should be able to do all the preparation for the court proceedings. You should be free from any obligation to do paper works.
Some states have directly adapted the model structured settlement act. The model version is not inferior to the structured settlement acts of states like New York and California because the major considerations are still incorporated. The only difference between the model SSPA and the specific ones lies on the details.
If the state in which you reside in and the state that your factoring company is licenced to operate have a structured settlement protection act, you might be required to seek approval from the courts of both States. This is to ensure that data presented are accurate and consistent to allow the court an efficient and comprehensive review of your request.
Related posts:
- Changes in New York Structured Settlement Protection Act
- Inconsistencies in Claims Lead Denial of Request to Sell Structured Settlement
- Importance of How Structured Settlement Started for NY Judges
- What the Court Needs to Know About Prior Transfers of Structured Settlement
- Where to File Request to Transfer Structured Settlement Protection Act
