The GloFin Funding Structured Settlements Cons Job

by Structured Settlement Watchdog

GloFin Funding is dreadfully misinformed about structured settlements. Its structured settlement cons spread misinformation to consumers.

GloFin Funding is a Huntersville, North Carolina and White Plains New York operator of a commercial and consumer finance company founded in 2002, that provides specialized working capital intended to extend financing to injured individuals to help them cover healthcare and living expenses during their recovery. The company's brands offer medical lien funding and pre-settlement advances in relation to pending personal injury, workers compensation and medical malpractice cases.  [Source: Pitchbook and GloFin website]

The following are the "GloFinated" cons of structured settlements 

"Filet -O-GlowFin"

• "Once a structured settlement is set up, its payment structure is upheld by the court and may not be changed even though unexpected life events may warrant additional financial needs.
• Your tax breaks could be forfeited if the IRS decides you have too much control over the proceeds from your structured settlement.
• Some annuities can be held with a broker and doesn’t retain sufficient protection to cover your payments if the portfolio’s financial obligations outweigh its assets".

Comments

1. A structured settlement is a negotiated compromise.  The schedule of payments is subject to the terms of the settlement agreement  (which the parties negotiated) and the qualified assignment agreement.  Each document includes certain restrictions (such as the inability to change) to comply with the Internal Revenue Code.  
2. If you sell your structured settlement payments to GloFin Funding through a structured settlement factoring transaction, GloFin Funding will give you just pennies on the dollar and you can't go back on that either.  You can go to a pawn shop and sell grandmother's pearls and get pennies on the dollar too.
3. Structured settlement payments (i.e. the "proceeds of your structured settlement" ) are exempt from income taxation if such payments represent damages that are expressly excluded under Internal Revenue Code sections 104(a)(1),  IRC 104(a)(2) or IRC 139F,  and a well worn path of proper documentation is followed.  Unless the payments are going into a trust, the payments come to you and you can spend or save as you wish.
4. GloFin admits on its blog that " the payments from structured settlements come from an annuity funded by the defendant or their insurer. This annuity will produce the income stream over the life of the annuity.  So what's with the narishkeit about "Annuities held with a broker"?  Is GloFin speaking about market based structured settlements or have they simply not a clue what they are speaking about?  Generally a structured settlement annuity is held by an assignment company.  
5. There is a spectrum of market based structured settlements available. With certain types of market based structured settlements, which are generally not all funded with annuities, the funding assets are still owned by an assignment company. You should not proceed with a market based structured settlement unless you have a clear understanding of what you are entering into and are willing to accept some market risk.

GloFin Funding should stick with pre-settlement funding. GloFin obviously don't know much about structured settlements and it doesn't look pretty.