Many attorneys passionately oppose factoring companies paying for your structured settlement rights and this is an issue which has attracted a lot of hate from many sectors. People think it is all right to sell their structured settlement payment rights in return for a discounted lump sum but the practice should be duly ignored and definitely not gone further unless an emergency forces you to. Stress on the word “force”. If there is no emergency which is forcing you to sell your payment rights, you should definitely not do it! Why is is so?Why are so many attorneys against this practice? This is because any plaintiff attorney who cares about their client and their well being knows that factoring companies are a financially motivated scheme. If you yourself are a structured settlement broker, expert, consultant or settlement planner, then even you should feel that this scheme is against the very principles and fundamentals of structured settlement.Any professional who cares about their work will oppose something which is seemingly out for its destruction.If you are an expert in the field of structured settlements, you should too! The topic may seem controversial and there is no black and white here but still, it is important to look at the entire scheme of things and gain a deeper understanding of all the aspects.
Mr. Patrick Hindert, on his blog, claims to be a proponent of a new model for structured settlements and is ready for changes in the existing model.He wants to include structured settlement factoring transactions and believes they should be an official part of the entire scheme. These assertions are also quite controversial because open mindedness does not mean that the destructive aspect of any scheme should be given an official status.
If you, as a client, want to have a sense of how attorneys feel about their clients selling their structured settlement payments for a discounted lump sum payment which is what you call factoring, keep reading.The business practices of the companies and individuals associated with your transactions will also be discussed.On a very basic level, the disagreement and direct opposition to the involvement of factoring companies is because they representthe destruction side of a structured settlement. Yes, this is what these companies do – destroy your structured settlement and give you a lesser lump sum amount but at immediate notice. The immediate response is the allure of this scheme and despite it handing its clients a smaller sum, factoring companies seem to have grown very much in popularity and now want an official space to improve their credibility.
There are many experts that are absolutely against the involvement of factoring companies and consider them a disgrace because of their totally financial motivation and how they break a perfectly salient scheme of things. Another reason why these experts feel that the addition of factoring companies is not open mindedness but a financial motivation because they don’t have a clear scheme of things. You can never find what their real intentions are and the discrepancy as well as level of inconsistency is quite high. Some people try to justify the inclusion of factoring companies and their working by saying that factoring has always been part of settlement planning and deserves its share of attention and popularity. However, factoring companies should be a part of only one industry – the factoring industry.
Despite the ongoing arguments, when you do decide to go to a factoring company and exchange your structured settlement payment rights for a lump sum, your attorney will feel thoroughly disappointed. This is because you are settling for a smaller amount of money and as a lawyer who cares about their clients, most feel that you are not making the best financial decision. Despite this, if you do have an emergency which forces you to go for it, you should.
However, if you are going to be factoring your structured settlement, make sure that you pay attention to the legal details of your transaction. There should be absolutely no discrepancy or inconsistency in the terms of the contract. You have to walk an extra step to make sure of this because there are many illegitimate companies out there that will try to fool you into making a transaction which will put you in a vulnerable state later. This is a very strong possibility and you should not underestimate the consequences.
In fact, the shady workings of the factoring industry will possibly lead to a major fallout soon. Many predictions have been made and observation of the scene has led to some crisp theories. This is why, if you want to remain safe and go on with this transaction, it is your responsibility to get a court approval and only work with an organization that seems safe.