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Tag: New York structured settlement

What If A Factoring Company Tries To Buy Payments That Don’t Exist? Court Dismisses Petition By Factoring Company

What If A Factoring Company Tries To Buy Payments That Don’t Exist? Court Dismisses Petition By Factoring Company

A structured settlement factoring company filed a petition for approval of a transfer of the right to receive future structured settlement payments.  The petition alleged that the proposed transfer from the payee to the factoring company would meet the requirements of the New York Structured Settlement Protection Act, which provides that such transactions are not legally effective unless and until a court approves the transfer based on a finding that the transfer meets the requirements of the New York SSPA….

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New York’s Structured Judgment Law Bars Settlement Factoring Deal, Says Court

New York’s Structured Judgment Law Bars Settlement Factoring Deal, Says Court

New York’s structured judgment statutes are found in Civil Practice Law & Rules Sections 50-A and 50-B.  Section 50-A is entitled “Periodic Payment of Judgments in Medical and Dental Malpractices Actions”, and Section 50-B is called “Periodic Payment of Judgments in Personal Injury, Injury to Property, and Wrongful Death Actions”.  Both require, under certain circumstances, that certain awards to claimants be paid over time.  Both also provide that such payments over time are non-assignable, except in certain circumstances.  In particular,…

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A Factoring Transaction Might Need Approval From More Than One Court – But The Factoring Company May Need To Provide an Explanation

A Factoring Transaction Might Need Approval From More Than One Court – But The Factoring Company May Need To Provide an Explanation

Under the laws of forty-eight states, structured settlement factoring transactions are generally effective unless and until they receive court approval, by way of a court order issued pursuant to applicable structured settlement protection act (SSPA) requirements. Sometimes, those requirements can mean that the transfer needs approval from more than one court.  A commentary on the subject describes an example this way: For example, if a factoring company proposes to acquire a structured settlement payment rights from a payee who is…

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