by Structured Settlement Watchdog®
Novation Funding LLC's eye-rolling "pick up line" is at once true and deceptive.
- If you are receiving structured settlement payments and those payments represent damages for physical injury, physical sickness, wrongful death or workers compensation as qualified by Internal Revenue Code Section 104(a)(1) or 104(a)(2), your structured settlement payments are income tax free.
- Classic misdirection at work. If you sell your structured settlement payments to Novation Funding LLC, regardless of the hat they choose to wear that day (e.g. 365 Advance Services or Novation Solutions) AND the transaction is a structured settlement factoring transaction that qualifies under IRC Section 5891 and applicable state law, then you may receive a substantially discounted lump sum payment.
- Who gives a cockroach's tuches if "it's also tax-free" when they're "liposuctioning" all the fat out of your wallet. You too can get hosed just like 19 year old Cedric Martez Thomas did by Novation Funding/365 Advance Services just a few months ago. As Aretha Franklin sang "you better think, what you're trying to do to me". Imagine this, you have $6.6 million of tax-free structured settlement payments coming your way. But Novation gets you to sell it for $1,037,000. Seems like a lot of money right? And that money is tax-free right? But you could have got $1,037,000 tax-free and kept a huge chunk of your annuity payments also tax-free. Alternatively you could have $1,037,000 and had 1,400,000 more "George" to to go along with it if you shopped it and went with someone else or beat down Novation into a more submissive price.