Borrower Profile and Credit Concerns in Pre-Settlement Lending in Personal Injury Cases
There is an ever-growing cottage industry of investors ready, willing and able to make the equivalent of a loan to an individual who is the plaintiff in a personal injury case. These transactions, also known as pre-settlement lending, are a growing trend for those in need. In order to avoid usury statutes, these transactions are…
Benefits and Best Practices in Pre-Settlement Lending in Personal Injury Cases
MECHANICS OF A PRE-SETTLEMENT LOAN Since a lawsuit itself is essentially the collateral to secure the finance company’s advances, the lending company will obtain information from the personal injury attorney concerning the case. They will follow these steps to offer the monies: Evaluation. The pre-settlement lending company evaluates the case and determines the likelihood of…
Early Termination Provisions in Self-Settled Special Needs Trusts and Self-Settled Pooled Trusts
On June 25, 2010, the Social Security Administration (SSA) issued clarification to the POMS relating to Early Termination Provisions and Trusts.[1] It should be noted that these provisions are not effective until October 1, 2010. Until that date, this POMS is to be considered informational only. The new POMS clarifies what is an early termination…
Avoiding The Unnecessary MSA: Obtaining An Opinion Letter
Since the advent of Section 111 of the Medicare, Medicaid and SCHIP Extension Act of 2007, defendants and defense counsel are more vigorous in ensuring that all Medicare liens are paid in full from settlement proceeds and that a Medicare Set Aside Arrangement (MSA) is established where required. Unfortunately, since this area is new, many…