What happens to you when your annuity buyer goes bankrupt?
Last year, J.D. Wentworth, Inc, filed for Chapter 11 bankruptcy protection. According to Philadelphia Business Journal‘s Jeff Blumenthal,
“The company sought acceptance of its plan from its lenders before what is called a prepackaged filing. More than 90 percent of the term lenders approved, the company said. J.G. Wentworth said the plan will allow it to substantially reduce its debt load while providing the enterprise with $100 million of new equity to support ongoing operations. Its operating units will continue to conduct business without interruption during the reorganization process, which is expected to be completed within roughly 30 days. The company said it also secured a commitment for debtor-in-possession financing to supplement its working capital and provide adequate liquidity during the proceedings.”
Should this worry the structured settlement company‘s customers? No doubt you’ve seen their television commercials quite a bit lately.Both J.D. Wentworth and Peachtree Financial seem to have stepped up their presence in television advertising in recent months. These recent developments in the structured settlement and annuity buying markets has prompted many to wonder: what if I’m selling my annuity or structured settlement, and the company I’m doing business with goes bankrupt?
If you’ve already sold your structured settlement or annuity, there’s nothing to worry about
“When a life settlement buyer files for bankruptcy,” Investment News‘ Darla Mercado writes, “insured individuals who have already sold off their policies are often the ones who end up least injured, as they have already collected their lump sum. However, insurance policies and annuities in the process of being sold may be up in the air.”
It’s enough to make anyone looking into selling their annuity or structured settlement pause. Miles Erie,an auto mechanic with a court settlement who harbors dreams of opening his own shop, compared companies and did research when he was considering selling his periodic payments. “I don’t know if I’m comfortable with a company that’s restructured like that and has such an aggressive presence on TV,” he said.
But you don’t have to worry about that with a company like RSL Funding, LLC. Many of our clients are those who have found other settlement companies unable to finalize their transfers. Our affiliated legal department enables us to expedite the purchase of your settlement; and our ability to get you immediate cash for collateral gives RSL Funding its well-earned reputation for reliable performance.