§ 141.006.Procedure for Approval of Transfers

Title 6. Miscellaneous Provisions · Chapter 141. Structured Settlement Protection Act · Last amended 2017 · Last verified August 29, 2026

In one sentenceSection 141.006 requires the transferee to apply, give interested parties 20 days’ notice with the agreement and disclosures, and allows the payee’s identifying information to be redacted.

Full Text of § 141.006

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(a)An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and shall be brought in the court.

(b)At least 20 days before the date of the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under Section 141.004, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for authorization, including with the notice:

(1)a copy of the transferee's application;

(2)a copy of the transfer agreement;

(3)a copy of the disclosure statement required under Section 141.003;

(4)a listing of each of the payee's dependents, together with each dependent's age;

(5)notice that any interested party is entitled to support, oppose, or otherwise respond to the transferee's application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and

(6)notice of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed to be considered by the court.

(c)Written responses to the application under Subsection (b)(6) must be filed on or after the 15th day after the date the transferee's notice is served.

(d)If the application under this chapter for approval of a transfer of structured settlement payment rights includes a written request by the payee to conceal from public inspection the personally identifiable information of the payee and the court and each interested party required to receive notice under Subsection (b) receive complete, unredacted copies of the application, other pleadings, and any order in the time provided by Subsection (b), as applicable:

(1)in any application, other pleadings, or any order filed or submitted, the court shall permit the full redaction of the name of the payee, the address of the payee, and other information that could reasonably be used to determine the identity or address of the payee, including the names of dependents, family members, and beneficiaries; and

(2)with respect to any order issued approving or denying the transfer of structured settlement payment rights:

(A)a copy of the order, with the information described by Subdivision (1) redacted, shall be filed as part of the public record;

(B)at the same time as the filing under Paragraph (A), an unredacted copy of the order shall be issued under seal and shall be provided to the transferee and each interested party entitled to notice under Subsection (b); and

(C)not earlier than six months after the date the order is issued, the court on its own initiative may, or on the motion of any person including a member of the general public shall, unseal the unredacted order and make the order part of the public record.

(e)Except as provided by this subsection, Rule 76a, Texas Rules of Civil Procedure, applies to all court proceedings and filings under this chapter. A party is not required to comply with that rule in order to redact the payee's personally identifiable information under Subsection (d)(1) or for the purpose of issuing an unredacted copy of the order under seal under Subsection (d)(2).

End

Plain-English Summary

The procedure, with an unusual privacy mechanism attached.

Subsection (a): the application shall be made by the transferee and brought in the court the definitions provision identifies. The buyer bears the procedural burden, not the payee.

Subsection (b): at least 20 days before the hearing, the transferee shall file and serve on all interested parties a notice including six things — the application, the transfer agreement, the disclosure statement, a listing of each dependent with their age, notice that any interested party may support, oppose, or respond in person or by counsel, and notice of the time and place of the hearing and the deadline for written responses.

The dependent listing with ages connects directly to the best-interest finding, which requires the court to weigh their welfare and support. The court cannot do that without knowing who they are.

Subsection (c) sets when responses may be filed — on or after the 15th day after service.

Subsection (d) is the privacy provision, added because these files are public. On the payee’s written request, and provided the court and every interested party receive complete unredacted copies in time, the court shall permit full redaction of the payee’s name, address, and other identifying information, including the names of dependents, family members and beneficiaries.

The order is handled in two versions: a redacted copy filed publicly, and an unredacted copy issued under seal to the transferee and interested parties. Not earlier than six months after issue, the court may on its own initiative — and shall on the motion of any person, including a member of the public — unseal it.

Subsection (e) applies Rule 76a to proceedings under the chapter, while excusing compliance with it for these particular redactions.

Frequently Asked Questions

Who applies to the court?

The transferee. The buyer bears the procedural burden.

How much notice do interested parties get?

At least 20 days before the hearing, with the application, transfer agreement, disclosure statement, and a listing of the payee’s dependents and their ages.

Can my name be kept out of the public file?

Yes, on written request — the court shall permit redaction of your name, address and other identifying information, with an unredacted order issued under seal.

Does the seal last?

Not indefinitely. After six months the court may unseal on its own initiative and shall unseal on the motion of any person, including a member of the public.

Amendment History

Added by Acts 2001, 77th Leg., ch. 96, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 802 (H.B. 3356), Sec. 1, eff. June 15, 2017.

Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source