Lump Sum Cash Outs

[EJ360Tech]

I am trying to help a friend with her finances. Long story short, she is POA for her mother who is broke, on SS, and in a nursing home w/ Alzheimers. Her mother has about $5K in debts (half is at 29% interest!). She spoke to a lawyer and the lawyer said to let the debts go into default. Up until now, she had been paying them, which she herself cannot afford.

The only asset her mother has is an annuity through TIAA CREF. It's valued at $9,500. Her mother only gets $1300 / year for the next 7 years from it. We called TIAA CREF and they will not let her cash it out or take payments earlier.

The lawyer said the creditors will eventually get a judgement against the annuity and garnish it. He suggested to find any way possible to cash it out, pay off the debts, and move on.

So....you see those commercials on TV for "lump sum cash settlements" (i.e. JG Wentworth). My question is has anyone ever used one? Normally, I would NEVER suggest anyone use one of these things, but my friend is basically beaten down emotionally, and even if she only gets 50% of the annuity, if it can pay off the debt and stop all the stress from collection notices, etc - she wants to do it to move on.

Can anyone reccomend one of these services that is somewhat repuatble?

[juggalo9er]

http://www.bankrate.com/finance/debt/want-settlement-cash-now-not-so-fast-1.aspx hope this helps

[guiness56]

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@EJ360Tech wrote:

I am trying to help a friend with her finances. Long story short, she is POA for her mother who is broke, on SS, and in a nursing home w/ Alzheimers. Her mother has about $5K in debts (half is at 29% interest!). She spoke to a lawyer and the lawyer said to let the debts go into default. Up until now, she had been paying them, which she herself cannot afford.

The only asset her mother has is an annuity through TIAA CREF. It's valued at $9,500. Her mother only gets $1300 / year for the next 7 years from it. We called TIAA CREF and they will not let her cash it out or take payments earlier.

The lawyer said the creditors will eventually get a judgement against the annuity and garnish it. He suggested to find any way possible to cash it out, pay off the debts, and move on.

So....you see those commercials on TV for "lump sum cash settlements" (i.e. JG Wentworth). My question is has anyone ever used one? Normally, I would NEVER suggest anyone use one of these things, but my friend is basically beaten down emotionally, and even if she only gets 50% of the annuity, if it can pay off the debt and stop all the stress from collection notices, etc - she wants to do it to move on.

Can anyone reccomend one of these services that is somewhat repuatble?

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I never used one but did check into how they work.  I draw a monthly retitrement and wanted to find out how much I could get for an outright cashout.

What I was told is there is an 8 year minimum.  They give you a percentage of what you will make for the next 8 years.  You then pay them.

I make 1669 a month for retirement which for 8 years would be $160,224.  They only wanted to give me a total sum of $52,000.  It wasn't worth it in my opinion so I chose not to do it.