Structured Settlement Laws in Georgia - What to Know Before You Sell Annuity Payments

When a plaintiff settles an ongoing case for a large sum of money, the plaintiff's attorney, the defendant or the financial advisor who has been a part of the proceedings might propose installments over payment of a lump sum. Settlements, which are paid in installments, are known as structured settlements. Based on your needs, you can choose to receive these settlements, or sell a part or the the annual payments in whole.

Although there are laws in two-thirds of the states in the U.S. to restrict the sale of structured settlements, according to the Georgia Structured Settlements law, you can trade annuity payments for upfront cash.

According to the Statute and Bill # O.C.G.A. 51-12-71 (GA H.B. 792), which was enacted on 6/4/2003 and is effective from 7/1/2003, the law, permits the sale or assignment of Georgia payment rights, subject to a court's review and approval based on showing that the proposed transfer is in the consumer's "best interests," taking into account the welfare of the consumer's dependents (if any). However, it requires certain disclosures and other consumer protections.

Throughout the state of Georgia, you can execute two types of structured annuity purchases, full and partial. When you choose to sell the full amount of your future settlement payments, it is known as a full purchase. When you sell a part of your payments, you agree to sell a part of your annuity over a certain time period.

Here are some of the common reasons clients choose to sell their structured settlements in Georgia:

Long due credit card payments Home or car purchase Rising medical expenses Investment Unemployment Vacation

Do you feel that you want to sell your structured settlement for any of the reasons listed above? It helps to know the law in detail, or consult a financial advisor or attorney, who will be able to take you through the process. You need to be on guard for potential exploitation in relation to the settlement too. Exploitation in the form of overstated value, greater commissions, and consider your life expectancy before you get into any agreement.