Topic: Consumer Law
Does having an IPA slow down my structured settlement transfer?
The short answer is
But there is a growing misconception floating around that
having an Independent Professional Advisor is a bad thing and will delay the
court approval and cost you more money. This is an Urban legend, that has been
told and retold by people for various reasons. Personally I choose to believe
they say this out of ignorance, and not out of greed or some other nefarious motive.
In fact the truth is most Independent Professional Advisors,
do not get paid until after the hearing, and although they do get paid whether
you win or lose; they want to close the cases as quick as possible. The other
side of that is the law that dictates who and what an IPA is part of a consumer
protection act. Which means once hired they are hired to protect the consumer,
so if a client is financial crisis how would slowing down the funding process
be protecting the consumer?
Second truth is, a competent independent professional
advisor can get; a fair market comparison,
a revised detail supplemental declaration, all other necessary documents, and
appear in court prepared to get the judge’s approval in just a matter of days.
The judges know this, and that is why they will give you a 2 week continuance
to seek an IPA in some cases. Because they know it will take longer for the consumer
to find the IPA then the IPA to do the job.
In California, the state statue actually requires the
purchaser to pay the fees of the IPA, so in truth the only people it will cost
more money to is the factoring companies. So it is in their best interest to
believe the urban legends. Let’s look at the facts, in California the minute a
seller gets an IPA it will cost up to $1500 out of their profits. Then if the
purchase price is lower than what the current market rates are then they would
have to come up in price to prior to the hearing or risk the judge denying or continuing
Speed is not always your friend in these types of matters,
some of the smaller companies that purchase structured settlements like to use “boiler
plate” template documents to go to court, these are good for some people. But
the problems come when you get in front of the judge and if those documents do
not fit what you are actually trying to do it gives the judge enough of a doubt
that this is in your best interest and you fully understand the nature of the
transaction to deny or continue the transfer. But a well-respected and competent
Independent Professional Advisor, will be able to spot the red flags and be
prepared to answer the judges line of questions to a satisfactory degree to get
So when someone tells you having an IPA is going to slow
down your court hearing and cost more money, you really should stop and ask
them do you believe in big foot or the chupacabra?
Does having an IPA slow down my structured settlement transfer? The short answer is NO.