by Structured Settlement Watchdog
I received a call from a concerned Executive Life of New York annuitant who is trying to sell his structured settlement payment rights to a factoring company and was told (by the factoring company) that nothing could be decided until after August 10, 2011. What gives, you say?
When you want to sell there must be someone who wants to buy what you're selling. In the case of structured settlement payment rights, a willing buyer will offer you a discounted lump sum of cash in exchange for the transfer of the legal right to receive some or all of the future structured settlement payments you are scheduled to receive.
A court must approve a structured settlement transfer as being in your best interest (and the best interest of your dependents)in accordance with your state's structured settlement protection act (at the time of publication 47 states had them). In assessing the viability of the purchase, the buyer must rely, among other things, on the credit of the annuity issuer, just like you (or the person who brough the lawsuit or claim on your behalf) did when the structured settlement was set up in the first place.
After the New York Superintendent of Insurance Obtained an Order to Show Cause in December 2010, setting a July 1, 2011 deadline for submission of a proposed liquidation plan for Executive Life Insurance Company of New York (ELNY) and August 1, 2011 as a deadline for submission of a proposed liquidation order if there were no liquidation plan.
In late June 2011 the Superintendent moved to postpone the deadline for filing a liquidation plan from July 1 to August 10, "in order to present a comprehensive and consensual Proposed Plan of Liquidation that maximizes the potential benefits for ELNY's structured settlement and other annuitants." (emphasis added). At a hearing June 30, 2011 the Nassau County Supreme Court granted the Superintendent's motion and entered an order (i) extending to August 10, 2011, the deadline for filing an agreed liquidation plan, and (ii) extending to September 15, 2011 the deadline for filing a liquidation order in the absence of a plan.
Hopefully by August 10th, when the '"curtain is pulled back", all will be more clear.
Keep in mind what is happening with Executive Life of New York when you see the baloney being advertised about paying you "cash now", "all your money now" "cash today" or "instant cash" in relation to your structured settlement payments. it's possible that you might not even be able to get an advance until August 10th., when under normal circumstances some companies may deliver a small advance (I've heard that $500-$2000 is typical) prior to Court approval.