2018-00243124-CU-PT

In Re: A White- Freitas

Nature of Proceeding: Petition for Approval for Transfer of Structured Settlement Payment

Filed By: Felton, James R.

This petition for approval of transfer of Aimee White-Freitas’ structured settlement payment rights was originally set for hearing on 11/28/2018 but was continued to this date to permit the filing no later than 12/7/2018 of supplemental declaration from Ms. White-Freitas addressing certain issues and documentation.

For unknown reasons, the required declaration was not filed until 12/10/2018 and it

contains none of the documents which the court requested. With these deficiencies in mind, the court now issues the following tentative ruling.

Ms. White-Freitas is a 31 year old, single, unemployed student who, with her boyfriend, apparently rents a single family home. She states she had a young daughter and currently receives SSI payments of $819 per month. She now seeks to transfer one lump sum payment of $60,000 due in 2022 with a present value of approximately $53,224, in exchange for roughly $39,656, representing an effective interest rate of 13.00%. She denies having made or attempted any prior transfers of her structured settlement payment rights. It is represented that Ms. White-Freitas is experiencing a “hardship situation” and will use the proceeds from this transfer to “pay off credit card debt, rent and living expenses.”

According to her initial declaration filed on 11/15/2018, Ms. White-Freitas currently owes roughly $16,500 in consumer credit card debt plus another $6,750 in unspecified “bills” but little other information was provided. Therefore, this court requested she “provide a supplemental declaration which provides all of the following information and documents” (underline in original), specifically including the following:

The nature and total amount of the credit card debt and other “bills” which Ms. White-Freitas intends to pay off with the proceeds from the transfer proposed here;

Documents reflecting the current amount of this credit card debt and other “bills,” along with all recent payments;

Documents reflecting her current monthly rent and all recent payments;

An explanation of amount of the proceeds from this transfer which will be used to pay her monthly rent; and
The nature and total amount of the unspecified “living expenses” which Ms.
White-Freitas intends to cover with the proceeds from the transfer proposed here.

The declaration belatedly filed on 12/10/2018 provides none of the requested documentation but does in pertinent part now aver that she will use the nearly $40,000 in proceeds to pay credit card debt nearly $18,000 owed to Big Lots ($612.06), Wal-Mart ($2,453.65), Costco Anywhere Visa ($5,907.82), Ulta Beauty ($1,515.51), Best Buy ($1,305.10), Wells Fargo ($4,500), Target ($1,023.45) and ExxonMobil ($529.28) and to pay one year of rent ($6,000), while using the remainder of the proceeds for the following purposes (none of which was listed in Ms. White-Freitas’ initial declaration):

Make six months of payments on her car and her car insurance ($3,500); Repay Social Security nearly $6,800 for a prior overpayment;

Pay for installation of a driveway ($2,200) (even though she does not own the home and the home at the address listed in the proof of service already appears to have a driveway);

Create an emergency fund ($2,000); and
Start a college fund for her daughter.

Based on the present record, the court will reluctantly grant the present petition provided that all of the following conditions are satisfied:

1. Ms. White-Freitas promptly provides the court with copies of bills which reflect the above-cited amounts she claims to now owe to Big Lots, Wal-Mart, Costco Anywhere Visa, Ulta Beauty, Best Buy, Wells Fargo, Target and ExxonMobil;

2. Ms. White-Freitas promptly provides the court with documents reflecting her current monthly rent and all recent payments;

3. Ms. White-Freitas promptly provides the court with documents reflecting her monthly payments for her car and for her car insurance;

4. Ms. White-Freitas promptly provides the court with documents the early overpayment of Social Security benefits in the amount of $6,773.82;

5. Petitioner J.G. Wentworth Originations, LLC or its attorneys make payment on Ms. White-Freitas’ behalf directly to Big Lots, Wal-Mart, Costco Anywhere Visa, Ulta Beauty, Best Buy, Wells Fargo, Target and ExxonMobil in the amounts stated above and promptly provides the court with documents reflecting such payments;

6. Petitioner J.G. Wentworth Originations, LLC or its attorneys make payment on Ms. White-Freitas’ behalf directly to her landlord in the amount of $6,000 and promptly provides the court with documents reflecting such payment;

7. Petitioner J.G. Wentworth Originations, LLC or its attorneys make payment on Ms. White-Freitas’ behalf directly to the creditor financing her vehicle and the insurer of that vehicle in the amount of no more than $3,500 and promptly provides the court with documents reflecting such payments;

8. Petitioner J.G. Wentworth Originations, LLC or its attorneys make payment on Ms. White-Freitas’ behalf directly to Social Security Administration in the amount of $6,773.82 and promptly provides the court with documents reflecting such payment;

9. None of the proceeds from this transfer is used to pay for installation of a driveway; and

10. Petitioner J.G. Wentworth Originations, LLC’s attorneys hold in trust for Ms. White-Freitas the remainder of the proceeds from this transfer, to be disbursed only upon subsequent court order.

Finally, Ms. White-Freitas is advised that her failure to comply with each of the foregoing conditions may affect her ability to obtain court approval for any future transfer of her structured settlement payment rights.

This minute order is effective immediately. No formal order or other notice is required. (Code Civ. Proc. §1019.5; CRC Rule 3.1312.)