‘Chapter 7 and Structured Settlement Servicing’ Part 1 of 2

In this October 2009 interview, Structured Settlement Watchdog® John Darer® and Dallas Bankruptcy Attorney Bruce Akerly discuss the ramifications of a Chapter 7 bankruptcy of a company that acts as a servicer of structured settlement payments. Structured settlement payment servicing is required when an annuitant only sells part of a structured settlement payments and the annuity issuing life insurance company will not split payments. What happens is that the full payment goes to the servicer which in turn splits the payments and distributes them to the purchaser of structured settlement payment rights that were sold with the balance to the annuitant.

Following the publication of this video the topic made it on the agenda of the 2009 Annual Meeting of the National Association of Settlement Purchasers. It is now de rigueur that there is not only a servicer but a back up servicer.

Structured settlement watchdog since 2005, John Darer is an AM Best Recommended Structured Settlement Expert


Leave a Reply