Launching a start-up and getting it off the ground can take a heavy toll on your savings and every penny you own. When a business is at its infancy, it drains the entrepreneur’s pockets leaving them wishing they could win a lottery or start flirting with the idea of selling illiquid assets. Without more money to offset expenses and missing profits, a vast majority of businesses end up in a terrific tailspin and disastrous failure at their early stages. But not in America where the entrepreneurship knack has seen more than 400,000 start-ups incepted every year. Nevertheless, it takes the tenacity of a seasoned entrepreneur to navigate the turbulent waves that thrash an upcoming company.
In September 1998, Michael Shaw was three years old when he became the recipient of a structured settlement annuity following a lawsuit on wrongful death involving his mother Kate Shaw. A structured settlement refers to compensation in a successful personal injury suit purchased from an insurer guaranteeing the aggrieved party a future income stream in addition to lump sum cash. In 2014, Shaw had already sold three of his payments; later on he wanted to sell more future periodic payments to fund his Hip Hop rap agency business he had unveiled a year back.
- Sell Structured Settlement Payments
How Many Times Can You Sell Your Structured Settlement Annuities?
In order to finance his newly-formed company, Shaw sought the professional advice of an entertainment legal specialist who came up with a business proposal that highlighted for about $130,000 to launch and sustain it. After selling three of his payments to J.G. Wentworth and Peachtree, he was not a newcomer in the factoring industry. Cashing out a whacking sum at J.G. Wentworth made him more of their loyal disciple than a return customer. He knew he would get another good deal.
J.G Wentworth filed a second application in New York seeking to sell additional payments. As he only wanted to sell a segment of his payments to pump into his entertainment company, the judge asked for documentation on the business plans, Shaw brought his entertainment attorney along. The process became sluggish when another judge started handling his petition. He was asked to provide more documents, including his transactions on his previous sales which he did. Luckily, the petition was allowed and an order affirming the sale granted.
New York’s Structured Settlement Law and Procedure
In New York, a payee like Shaw has to be supplied with sufficient disclosures by the structured settlement purchasing company. The court also scrutinizes the transaction to ensure the deal does not rip off the seller with a whopping discount rate. J.G Wentworth complied with the New York Structured Settlement Protection and the IRC 5891.
Did Shaw Raise Capital After Selling Structured Settlements?
Shaw was lucky to get a plentiful structured settlement; he had a life annuity with a guaranteed income stream stretching over 30 years. He was entitled to periodic payments of $7,320 per month for life set to increase 4% annually. Additional lump sums of $40,000 were to be paid once for seven years, $100,000 on 7/23/2017, $150,000 on 5/22/2023 and $286,914 on 2/20/2027. Shaw only sold three lump sum payments to nail the $130,000 capital for his business. His business has flourished by leaps and bound while he still continues to receive his monthly installments from the structured settlement.
Shaw felt confident selling a portion of his income streams to J.G. Wentworth as their transactions are whiter than white. No fraud, misrepresentation or attempt to seize all of his income. The remaining tax-free payments are still enough to offer Shaw risk-proof funds to meet basic needs and other financial demands in his life.
Best Structured Settlement Buyers for 2017
Shaw recommends J.G. Wentworth if you want to cash out a portion of your structured settlement due to their sharp expertise in the industry. J.G. Wentworth lurks with experienced attorneys; they acted as his representative before court for the second time allowing him to get him a one-off lump-sum payout fast and affordably.
Woodbridge Structured Funding
A renowned structured settlement purchasing company incorporated in 1993, Woodbridge Structured Funding offers the most seamless processes to buy structured settlements, lottery winnings and annuities.
Peachtree also bought Shaw’s structured settlement payments once in 2013. They deliver all paperwork, including an agreement and disclosures, gave him warm and welcoming customer support and disbursed his lump-sum cash out within 24 hours after the court order affirming his sale.…