IPA, Declarations

As a paralegal that has personally helped thousands of persons who are selling their annuity or structured settlements in California, I am here today to tell you why, in the state of California, it is important to prepare a detailed declaration of your personal and financial situation to file with the court when you are selling your annuity and why it will greatly help your chances of getting a Judge to approve your structured settlement transfer at the first hearing avoiding a continuance.

The main reason is because Judges ALWAYS read declarations to determine if a transfer is in your best interests. Recently, I have also seen that some companies are in the practice of filing “canned” declarations on behalf of the person selling their structured settlement.

Declarations that contain only basic phrases like “I have financial hardship” or only “I feel it is in my best interest because I need the money.”  Statements like these, by themselves, are really not enough for a Judge to make a ruling in your favor, and I have seen many cases continued and/or even denied for lack of specific facts that support the reasons for the transfer.

Based on the law concerning the sale of your structured settlement, Cal Ins. Code 10139.5(b)(1)-(15), there are certain things (findings) the Judge MUST take into consideration before approving your transfer and these findings should be laid out in your declaration for the Judges convenience which will make it easy for him to approve your transfer.

These items that should be included in your declaration are:

1. Whether or not you other income in your household to support yourself or your family, that the payments you are selling are not your only source of income.
2. Have you tried to obtain the money you need through other means (i.e. a bank loan) and why these are not good options for you.  Maybe you have a low FICO score..etc.
3. A detailed breakdown of what the monies will be used for and if you have completed prior transactions, Judges are also looking to see if you spent those monies as they were intended or, if not, how were they spent?

I specialize in helping you gather the information you need for your declaration and then presenting it in a simple format declaration that will assist the Judge in understanding how the transfer is in your best interest.

Another growing trend we are seeing with the Judges in the state of California is that they are pushing for the annuitant or person selling their structured settlement to take advantage of the law that has provided for you to speak to an attorney or other licensed professional at no cost to you.  Such professionals also known as  “Independent Professional Advisors” or  “IPAs” under the law  are something Court’s looks highly upon especially since the law provides the means for you to obtain IPA advice at no cost to you (the seller).

In other words, you do not have to pay a financial advisor a penny and will they advise you and review your paperwork to make sure you fully understand the transaction are receiving “fair value” for your payments. Plus, many IPAs will also go to court with you so that you are not there alone.  I can tell you from experience that there are Judges who will not approve a transfer unless you have spoken to a professional advisor first, and they will continue your hearing in order for speak to an IPA which will then cause additional delays in the approval of your transfer and the funding of your money.