by John Darer® CLU ChFC MSSC RSP CLTC
In Re Monarch Capital Corporation, a 1991 Chapter 11 Bankruptcy case in Massachusetts, should be of interest to current structured settlement payees, prospective
structured settlement payees, plaintiff lawyers. those funding structured settlements and those buying structured settlement payment rights. In the case, Monarch Capital Corporation, the qualified assignment company owned annuities funding future periodic payment obligations to approximately 175 structured settlement payees at the time of the bankruptcy. The bankruptcy court concluded that the structured settlement payees could continue to be paid without violating the automatic bankruptcy stay and without being subject to any claim on behalf of the bankruptcy estate of Monarch Capital.
Also notable is that the bankruptcy court protected the structured settlement payees' rights even in the absence of secured creditor protections common in today's structured settlements.