Structured Settlements; judge who approved settlement must approve transfer, transferee to disclose any application rejections.
The changes proposed by SB2399 are intended to reinforce judicial control over the structured settlement transfer process. By requiring a court order from the original approving judge or a designee in their absence, the bill adds layers of protection for payees against potentially exploitative practices in structured settlement transfers. This modification could significantly impact how these transactions are conducted in the state, promoting more rigorous scrutiny and transparency throughout the approval process.
Senate Bill 2399 amends sections of the Mississippi Code regarding structured settlements. It specifically mandates that all purchases and transfers of structured settlement payment rights must receive prior approval from the judge who authorized the original structured settlement. This requirement aims to ensure that the interests of the payees, particularly their welfare and financial security, are duly considered before any transfers are executed. The proposed legislation underlines the importance of judicial oversight in financial matters affecting individuals who rely on structured settlements as a significant source of income.
Opposition to SB2399 may arise from concerns regarding increased bureaucracy and potential delays in the transfer processes for those in need of quick liquidity. Critics argue that while the intent of protecting payees is valid, the mandated judicial oversight could complicate and hinder funds access for individuals who need immediate relief. This contention highlights a balance that needs to be struck between protecting payees' financial interests and ensuring timely access to their funds.