Sovereign Funding Group FAQ’s
August 12th, 2011
Sovereign Funding Group strives to give you the information you need to make an informed decision about selling your structured settlement or other annuity payments. The following is a list of commonly asked questions and related answers:About What Sovereign Funding Group buysWhat types of payments does Sovereign Funding Group buy? About Selling your Structured Settlement AnnuityWhat is a structured settlement annuity? Is it legal for you to sell your structured settlement payments? What if your settlement agreement or annuity policy contains anti-sale or anti-assignment language? Can you sell just some of your structured settlement payments or do you have to sell them all? What happens if you are in bankruptcy proceedings and have not yet been discharged? Do you have to pay tax on the money you receive on the sale of your structured settlement payments? If you are a minor child are you able to sell your structured settlement payments? Are you legally permitted to sell workers compensation payments?. About the Sovereign Funding Group Price QuoteHow do you request a price quote from Sovereign Funding Group? How long does it take before you receive your quote? Is the quote you receive a guaranteed offer to buy your structured settlement payments? Are you obligated to sell if you request a price quote? How much time do you have to accept an offer? What happens if you accept and offer and then decide you want to cancel? How will you be notified of the price quote? About the Sales Process and Getting your Money——————————————————— About Sovereign Funding GroupWhat types of payments does Sovereign Funding Group buy? Sovereign Funding Group buys structured settlements and certain other insurance annuity payments. Specifically We can generally buy your payments if they are paid to you:
We do not buy:
About Selling your Structured Settlement AnnuityWhat is a structured settlement annuity? A structured settlement annuity is a contract issued by an insurance company to fund the payment of damages for personal injury over a period of time. It is sometimes referred to as an insurance settlement. It guarantees you or, in the event of your death, your beneficiary a tax free payment or a series of payments over a fixed period of time. Most structured settlements are the result of a lawsuit- they are payments resulting from a court action. Is it legal for you to sell your structured settlement payments? Yes. You can sell your structured settlement or insurance settlement payments. Most states have a Structured Settlement Protection Act. These laws allow you to sell your payments if the following requirements are met:
What if your settlement agreement or annuity policy contains anti-sale or anti-assignment language? Anti-assignment or anti-sale language does not prevent you from selling your payments. Some settlement agreement or annuity policies contain anti-sale or anti-assignment wording such as: “none of the periodic payments may be accelerated, deferred, increased or decreased and may not be anticipated, sold, assigned or encumbered.” Since you must get a court order approving the sale of your payments, a judge will review and evaluate your case. Judges have the power to approve the sale, even if there is language in your settlement agreement or structured settlement annuity policy that attempts to prevent you from selling your payments. Can you sell just some of your structured settlement payments or do you have to sell them all? You can sell some or all of you payments. You can create more than one case file online with different payment combinations and get more than one price quote so as to customize a transaction that best meets your financial needs. If you only sell some of your payments your insurance company will continue to pay you the payments you keep as and when those payments are due. What if you have sold some of your structured settlement payments in the past, can you sell more now? Yes. If you have sold some of your structured settlement payments in the past you can sell any remaining payments to which you are still a payee. Want to know how much your payments are worth? Get a guaranteed price offer on your payments in less than 24 hours. What happens if you are in bankruptcy proceedings and have not yet been discharged? We can buy your payments even if you are in bankruptcy proceedings and have not yet been discharged. If you are in bankruptcy proceedings you will need to let us know prior to having your case quoted so that we may speak to your trustee in bankruptcy or legal representative to obtain additional facts. We reserve the right to deduct a reasonable fee for additional work in processing cases that have not yet been discharged from a bankruptcy. Do you have to pay tax on the money you receive on the sale of your structured settlement payments? The money you receive from selling your structured settlement payments will have the same tax treatment as the payments you receive from your structured settlement annuity. If you currently receive your payments tax free the money you receive from selling your payments will be tax free. In most cases your structured settlement annuity payments are tax free because your annuity was set up to qualify for tax free treatment under section 130 of the Internal Revenue Code. The U.S. Federal Government has taken several steps to insure that payments received for damages from personal injuries will be tax free. Section 104(a)(2) of the Internal Revenue Code confirms that damages received for personal injury or sickness are not considered income and are not subject to tax. In 2002 federal legislation was passed to protect payees should they decide to sell their structured settlement payments. As a result, Section 5891 was added to the Internal Revenue Code. Section 5891 requires the sale of structured settlement payments must be approved by a court in accordance with the relevant State statute. Provided the sale is conducted in accordance with Federal and State laws there are no taxes payable. Please note that this information is provided as a courtesy only and does not constitute legal advice. You should seek legal or other professional advice to address your specific circumstances. If you are a minor child are you able to sell your structured settlement payments? Sovereign Funding Group does not offer quotes to annuitants who are minor children because those persons do not have legal capacity to sell their payments without the intervention of a litigation or personal property guardian. Are you legally permitted to sell workers compensation payments? It is not legal for you to sell a structured settlement annuity arising from workers compensation claims. You must keep the annuity until all of the payments are made to you. About the Sovereign Funding Group Price QuoteHow do you request a price quote from Sovereign Funding Group? To start the offer process,
How long does it take before you receive the quote? It will take a maximum of 24 hours for you to receive your set of price quotes which constitute firm offers to buy your annuity. You may receive some or all of your price quotes in as little as 1 hour. Is the quote you receive a guaranteed offer to buy your structured settlement payments? Yes. The price quote you receive is a guaranteed offer to buy your structured settlement payments. We guarantee:
Are you obligated to sell if you request a price quote? There is no obligation for you to accept our price quote. You may decide that you do not wish to sell your annuity in which case we will close your file until further notice from you. How much time do you have to accept an offer? Each offer provided by our Certified Partners is open for acceptance for a period of 48 hours following posting. To accept just visit our Web Site, log into your account, and press the “Accept” button. Alternatively you may contact us by phone at the number provided on our Home Page and notify one of our customer service experts that you accept and wish to proceed with your sale. What happens if you accept and offer and then decide you want to cancel? You should not indicate your acceptance of an offer until you are sure you want to proceed with the sale. However, even if you do accept and receive sale documents, there is generally a “cooling off” period in which you may change your mind and cancel the transaction. The cooling off time period is clearly stated on either the Disclosure Statement or Sale and Assignment Agreement you receive as part of the sale documentation. How will you be notified of the price quote? You will be notified of your price quote in one of two ways: By logging into your account here and following the instructions on your screen.By calling us at 1-800-348-3098 or by our customer service expert calling you.Back To Top About the Sales Process and Getting your MoneyOnce you accept an offer, what are the steps involved to complete your sale transaction and how long does it take to get paid? At Sovereign Funding Group we understand that your financial goals depend on completing your sale transaction and getting paid in the fastest time permitted by law. Once you have accepted an offer and confirm that you want to proceed with the sale we start the sale process as follows:
If your sale transaction does not get completed for whatever reason will you still receive your payments as usual? We process your structured settlement sale transaction at no cost to you. In the unlikely event your sale is not completed for whatever reason:
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Sovereign Funding Group can lend you anywhere from 70% to 120% of your average monthly Visa/MasterCard swipes. Paying back the loan is easy too! ... 
