What Is the Structured Settlement Protection Act?

Expert Analysis

The SSPA was created in response to abuses in the 1990s and early 2000s when some buyers took advantage of sellers with exploitative terms and no oversight. Key protections include: Mandatory disclosure of the discount rate and the difference between what you're giving up vs. receiving. Waiting period (typically 3-10 days depending on state) between receiving disclosures and signing the contract. Court hearing where a judge independently evaluates whether the sale is in your best interest. Right to cancel within the waiting period without penalty.

State variations: Some states (like California) have stricter versions requiring 15 days between disclosure and signing. Some states require the buyer to pay for independent professional advice (IPA) for you. Some states mandate that the buyer provide a list of alternatives to selling.

The SSPA is your biggest protection as a seller. Never work with a buyer who suggests circumventing any of these requirements it's both illegal and a sign they know their terms wouldn't survive judicial review.