How Does JG Wentworth Work?
JG Wentworth is a Chesterbrook, Pennsylvania financial services company that assists people with financial hardships in three ways: 1) buying payment rights for structured settlements, annuities, and lottery winnings, 2) settling debt, and 3) helping clients access money before they receive legal settlements. J.G. may be best known for commercials with actors who sing jingles about wanting a lump sum of cash.
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Future Payments: Structured Settlements, Annuities, and Lottery Payments
JG Wentworth offers a payment purchasing service that gives cash to people who want to sell the rights to payment streams, including structured settlement payments and annuity payments.
After contacting JGW and providing information about both your future payments and your payout needs, they’ll provide a free, no-obligation quote. If you accept their offer then you’ll need to complete the paperwork and sign the contract. If you have rights to structured settlement payments, from a personal injury for example, rather than an investment annuity, will be required to attend a court hearing. Receiving court approval is based on the judge determining that selling your structured settlement payment rights is in your best financial interest. Then, once the paperwork processing with your insurance company is completed, you are paid your lump sum payment.
JGW and Debt Relief
Do you have financial hardships from credit card debt and personal loans with high-interest rates, or large medical bills? If your answer is yes then a debt consolidation program may be a financial solution that can help you save money. People with secured debts, such as home loans and vehicle loans, which allow lenders to take control of the thing being financed, are not candidates for this kind of program.
J.G. Wentworth debt relief works when JG is able to settle customers’ debt by paying creditors less than the amount of money that is owed by customers. Debt relief is similar to a Chapter 13 bankruptcy in which people in debt pay back a portion of what they owe. The key difference between debt consolidation programs and Chapter 13 bankruptcy is that lenders are forced to play along in bankruptcy and completing payments as agreed is guaranteed to resolve outstanding debts.
Settling debt is normally only possible when payments are very late. Why would a lender accept less than what is owed from someone who pays their bill regularly and on time? Creditors are not forced to participate in attempts to settle a debt. People participating in these programs may receive collection phone calls until the process is complete. Creditors may sue borrowers as they try to settle. Lastly, they may also sue if it takes too long for a proposed settlement offer to be supported with actual cash.
The debt settlement process
- Contact JG Wentworth to determine your eligibility
- Stop paying your bills
- Send/save monthly payments according to the specifics of your debt relief program
- JG will negotiate with creditors to settle accounts once you have enough money
Please speak with a tax attorney or Certified Professional Accountant to determine whether you owe taxes on forgiven debt.
Pursuing and participating in debt relief services will hurt your credit score because creditors who report to credit bureaus are likely to report you as being late. If any of these creditors accept a settlement, that too will likely be reported to the credit bureaus. Whether the impact on your credit is worth it comes down to each individual and their circumstances.
Pre-settlement funding is a like a non-recourse loan provided to a plaintiff in a lawsuit in exchange for money that is expected in a future settlement. People who receive this funding do not owe money if things do not go well or as expected with their settlement. While JG Wentworth does not issue loans, it works with a network of companies that do.
J.G. Wentworth Fees
J.G. Wentworth fees are product-based: 1) fees for selling annuity settlement payment rights is a discount rate of 9-18% + a profit/expense margin, 2) fees for debt relief range from 18-25% of the debt being managed + a fee for the “dedicated program account provider”.*
Is JG Wentworth Legit?
According to the Better Business Bureau (BBB), the Wentworth Company is responsive to its customers, as evidenced by its a+ rating.
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*According to jgwentworth.com/our-debt-relief-program on February 18, 2023.