Legal Question in Credit and Debt Law in North Carolina

Why do you want to convert your pension into a lump sum? You will get less than you otherwise would if it were paid out over time. What is your pension from (what type of employment)? If you need cash now for debt you may have better alternatives (like bankruptcy) and you will lose any protection the pension might otherwise receive.

I agree with Ms. Coleman. Because of the time value of money, $1000 right now is more valuable than more money later. But because of this, cash advance companies give you far less money now than your pension would be worth over time.

And pensions may be exempt if a creditor sued you and got a judgment against you. So why cash in a pension? Why do you need the money now and why will other traditional avenues not work for you?

These are rhetorical questions to make you think about what you are doing. I don't expect answers and I am not judging. Personally, I think these things are a bad deal and I would urge you to think about it first.

If you decide to proceed, I would thoroughly check out whoever you go with. Google their name and see what comes up. Look at consumer complaint sites like the Ripoff Report. I did - here is what I found: http://www.ripoffreport.com/reports/directory/jg-wentworth

Here is one on Lump Sum Advance:

http://www.denverpost.com/nationworld/ci_23123858/pension-advance-offers-prove-devastating-retirees

Here is an article on this: http://prospect.org/article/shame-pension-advance-loans

Are you starting to see a theme here? You should. Run from this and sit down with a financial counselor or a debt settlement lawyer (if you have a debt issue) and have them look at your situation and give you an opinion.

If you need to raise cash, what about a reverse mortgage if you meet the requirements? (You have to be at least 62 and have 50% equity in your home).

Bankruptcy is not the only option if you have debts.