Capital Planning INC. is a settlement annuity business that was founded in 1981 in Minneapolis, MN. They’re one of the oldest structured settlement companies on the market and possess the distinction of being among the founding members of the National Structured Settlement Trade Association. They specialize in purchasing and selling structured settlements, and also offer several other services to their clients. These other services range from drug to expert testimony.
Selling structured settlements, annuities, scheduled lottery returns or other continuing payments for cash became very popular during the recession. But if you are still feeling the cash crisis, this approach is a potential choice.
How can it work?
When a structured settlement holder calls, Capital Planning Inc. and the team will review the settlement, conditions, and reasons the applicant needs the cash. They provide the payee an upfront sum to surrender the stream of payments, along with a discount rate if they decide to move forward.
This discount rate, which is usually between 29 percent and 6 percent, is comparable to the interest you’d pay on loan, says Grover Christopher Collins, managing associate at the Collins Law Firm in Nashville, Tennessee. As such, the economic the discount rate, the better the deal.
“You can negotiate,” Collins says. “It’s not a take-it-or-leave-it proposal, and you can even shop around.”
When you do take an offer, however, the business is going to file a petition for alteration of the structured settlement in court in the state the business is in.
“The judge is the final arbitrator of whether it gets approved or not,” Collins says. Opinions are made based on, among other things, what the man needs the cash for, what the discount percentage is and the structured settlement company’s standing.
Exact procedures will change depending on jurisdiction, but from the time a payee calls to the time they receive cash is often as little as sixty-two days, or as long as ninety days, Collins says.
David Lewis, senior president and general counsel with Stone Street Capital LLC, says few people sell their whole