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Tag: “New York SSPA” “New York Structured Settlement Protection” “SSPA” “structured settlement protection” “fair and reasonable” “best interest” “court approval” “court review”

Judge Points Out That Courts Are Not Meant To Be Rubber Stamps In Structured Settlement Protection Act Proceedings

Judge Points Out That Courts Are Not Meant To Be Rubber Stamps In Structured Settlement Protection Act Proceedings

As described here, a New York judge concluded it was not fair and reasonable for a structured settlement payee to sell more than $470,000 in future settlement payments for an immediate sum of $10,000. In Matter of J.G. Wentworth Originations, LLC (Kwant), Index No. 52903/2018, 2018 N.Y. Misc. LEXIS 5584 (N.Y. Sup. Ct. Dec. 4, 2018), the judge, Dutchess County, New York, Supreme Court Justice James D. Pagones, also pointed out that, in a New York Structured Settlement Protection Act proceeding,…

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New York Judge: Selling $478,000 In Future Payments For $10,000 Is Not Fair, Reasonable

New York Judge: Selling $478,000 In Future Payments For $10,000 Is Not Fair, Reasonable

A factoring company provided a disclosure statement to structured settlement payee that explained the terms of the transaction: $478,590.82 was the aggregate amount of all the future structured settlement payments that would be sold from the payee to the factoring company. In exchange for those payments, the payee would receive $10,000. The reviewing court rejected the request for judicial approval of the transaction – a prerequisite for the transaction to become legally effective under the New York Structured Settlement Protection…

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Structured Settlement Protection Act Proceedings: Step One and Step Two

Structured Settlement Protection Act Proceedings: Step One and Step Two

In Washington Square Financial, LLC v. Allstate Assignment Co., No. 9605/2010, 29 Misc.3d 1204(A), 2010 WL 3834000 (N.Y. Sup. Ct. Oct. 1, 2010), a New York trial court denied a request for court approval of a transfer of structured settlement payment rights, concluding that the transfer proposed by the factoring company, Washington Square, was not in the payee's "best interest" and was not "fair and reasonable" as those terms are set forth in the New York Structured Settlement Protection Act…

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