A recent article by Wall Street Journal author Leslie Scism chronicles how factoring can devastate a properly structured settlement.
After a childhood fire took Terrence Taylor’s leg and many fingers in 1988, his lawyers crafted a multimillion-dollar legal settlement to ensure he had steady income for life. It didn’t take much for him to lose it.
In 2012 at the age of 30, Mr. Taylor moved out of his parents’ northern Virginia home and took over his finances. Then, in 11 rapid-fire transactions with five finance firms, he sold three decades of future payments for hundreds of thousands of dollars in cash that he promptly squandered, according to a lawsuit…
Download the whole article Firms Help Settlement Holders Cash Out.