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INTRODUCTION

Petitioner, 321 Henderson Receivables Origination LLC (hereinafter Henderson), appeals from a final consolidated order denying its petition for approval of transfer of structured settlement payment, contending that the superior court committed multiple legal errors. For the following reasons, we reverse.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

A. General Background

Henderson, an indirect subsidiary of J.G. Wentworth, LLC, is a factoring company. Factoring companies deal with people who receive structured settlements. “Structured settlements are a type of settlement designed to provide certain tax advantages. In a typical personal injury settlement, a plaintiff who receives a" lump-sum payment may exclude this payment from taxable income under I.R.C. [Internal Revenue Code] § 104(a)(2) (providing that the amount of any damages received on account of personal injuries or sickness are excludable from income). However, any return from the plaintiff’s investment of the lump-sum payment is taxable investment income. In contrast, in a structured settlement the claimant receives periodic payments rather than a lump sum, and all of these payments are considered…