Alabama Structured Settlement State Laws
If you live in Alabama and are interested in selling your structured settlement for cash, below is a brief overview that can be a good starting point in your research.
Alabama Law: Selling Structured Settlement Payments
If you are considering selling your future structured settlement payments for an immediate lump sum in Alabama, it's important to understand the laws surrounding this type of transfer. In addition to federal law, 50 states have their own laws that govern the process of transferring the rights of a structured settlement annuity.
Alabama Structured Settlement Law
In Alabama, the law surrounding the transfer of rights to future structured settlement payments is the Structural Settlement Protection Act.
§ 6-11-53. Court order required; findings required.
No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by the court or responsible administrative authority, determined after a factual hearing, of all of the following:
(1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.
(2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing.
(3) The transfer does not contravene any applicable statute or the order of any court or other government authority.
Structured Settlement Federal Law
To sell your future structured settlement payments, you'll need to comply with both state and federal law. These laws are in place to protect you. Knowing Structured Settlement Federal Law is important as it states the …… 26 U.S. Code 5891 also offers some helpful definitions and other rules for selling structured settlement rights. Read the full law here.