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 is on the court’s own motion CONTINUED to 12/14/2018 at 9:00 a.m. in this department, to permit the filing of supplemental declaration from Ms. White-Freitas addressing the issues and providing the documentation noted below.

Ms. White-Freitas is an unemployed student who claims to earn $819 per month. It is unclear whether she is married or single but she states she has one minor child. She now seeks to transfer one lump sum payment of $60,000 due in 2022 with a present value of approximately $53,335, in exchange for roughly $31,580, representing an effective interest rate of 19.99%. 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 the 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.”

At the outset, the court finds that the effective interest rate of 19.99% for this transfer is excessive under the circumstances and this alone warrants the denial of the present petition.

Additionally, before the court can determine whether the transfer proposed here is otherwise in Ms. White-Freitas’ “best interest” as required by Insurance Code §10139.5, she must provide a supplemental declaration which provides all of the following information and documents:

Whether Ms. White-Freitas is single, married, divorced, etc.; The source of her claimed $819 monthly earnings;

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.

Without a supplemental declaration providing this requested information and documentation, the court anticipates denying the present petition because it cannot conclude the transfer proposed here is in Ms. White-Freitas’ “best interest” as required by Insurance Code §10139.5.

The supplemental declaration shall be filed no later than 12/7/2018.

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