Stopping Vulnerable Plaintiffs From Selling Off Settlements.
June 16, 2014
On June 15th, Vice President and General Counsel, Marty Jacobson's co-authored article, Stopping Vulnerable Plaintiffs From Selling Off Settlements, was published in the Connecticut Law Tribune.
Selling future tax-free income at deep discounts is often a desperate and economically imprudent move. Yet the temptation to do so remains for some. In many of the cases we handle, the plaintiffs are unsophisticated consumers of financial services, not necessarily because of their education or socio- economic status.
This article looks at the current Connecticut Structured Settlement Protection Act and whether it can save payees from the predatory practices of some factoring companies.
The Creative Approach In our view, when a payee petitions a court to sell his or her structured settlement payment stream, it demonstrates a failure on the part of the settlement process.
Unlike some of our competitors, our team of experts never advise placing 100 percent of a settlement into a structure. In our experience, doing so is not, in most cases, in the “best interests” of the client and has the potential of leaving plaintiffs vulnerable and at the mercy of factoring companies later on.
When working with you and your clients, the team at Creative Capital takes into account all future needs and liabilities, including debt reduction, home additions for disability ramps, college funding, medical expenses, etc to ensure a solid financial plan in advance of the judgment or settlement.