Getting Government Help? How to Keep Your Benefits While Pursuing an Injury Claim
If you’ve been injured in a pedestrian accident and are receiving government benefits, you may be worried about how pursuing a personal injury claim will affect the support you rely on.
While filing a claim in California doesn’t automatically result in losing your benefits, there are key details to understand in order to protect your government assistance. Let’s explore how pursuing an injury claim can impact your benefits and what steps you can take to safeguard your financial support.
Do you need compassionate support and effective representation?
No fees until we win. Available 24/7.
Do I have benefits while pursuing an injury claim?
In general, government benefits like Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and public assistance programs do not automatically stop when you file a government injury claim. However, any compensation you receive from a settlement could be considered income, which may affect your eligibility.
Programs such as SSI and SSDI have strict income limits, and a personal injury settlement may lead to a temporary reduction or suspension of your benefits. For example, if you’re receiving SSI, the settlement may be counted as income, which could affect your monthly benefits.
Public assistance programs, such as CalWORKs or Medi-Cal, may also be impacted by an injury settlement. It’s important to report any settlement or judgment to the agency administering your benefits. Failure to do so could lead to overpayment of benefits or cause your eligibility to be temporarily suspended until your funds are spent down.
Can I keep my benefits while waiting for my personal injury settlement?
Yes, you can generally continue receiving government benefits while pursuing an injury claim to settle, as long as the settlement doesn’t affect your eligibility. However, you must report any potential income from the settlement to the relevant benefits administrator. If you fail to report this income, you could face penalties or an overpayment of benefits.
For example, if you’re receiving Medi-Cal or other assistance, it’s important to let the administering agency know about your injury case. Depending on the amount of the settlement, the agency may reduce your benefits until the settlement is used for its designated purpose.
It’s also essential to understand how your settlement is structured. While a lump-sum settlement for pain and suffering might be counted as income, funds allocated specifically for medical expenses may not be treated as income, helping you retain eligibility for some benefits.
How can I protect my benefits when settling a government injury claim?
Protecting your government benefits during the settlement process is possible with careful planning. One option is using a special needs trust. This legal tool allows you to place part of your settlement funds into a trust that is not considered income for SSI or Medicaid purposes. This can help you keep your benefits while still accessing compensation for your injury.
Another strategy is to structure your settlement to clearly separate funds for medical expenses from those intended for other purposes. By designating specific amounts for healthcare, you may be able to avoid having these funds counted as income, allowing you to keep your benefits intact.
Working with a personal injury lawyer who understands the impact of settlements on government benefits is crucial. An attorney can help ensure your settlement is structured in a way that minimizes the effect on your government assistance, while maximizing your compensation for the injury.
Can I be garnished or lose my benefits after receiving a personal injury settlement?
In most cases, your personal injury settlement is not subject to garnishment by creditors. However, there are exceptions. If you’re also receiving workers’ compensation benefits, your workers’ comp benefits may be reduced if you receive a third-party settlement from a personal injury claim. This is to prevent “double recovery” for the same injury.
For government benefits like SSDI or SSI, your personal injury settlement is typically not subject to garnishment, unless you owe child support, back taxes, or other court-ordered obligations. In those cases, a portion of your settlement may be garnished to cover those debts.
It’s important to understand the specific rules for your type of government benefit and any obligations you may have. An attorney can help you handle these situations and protect your benefits from being garnished or reduced.
What should I do if I receive government assistance and my personal injury claim is pending?
If you’re receiving assistance and have a government injury claim pending, report any changes in your financial situation to your benefits provider. Being proactive about your injury settlement helps you avoid complications like overpayments or penalties.
California law requires you to report changes in income, including any funds you might receive from a settlement. Not reporting these changes can lead to a loss of benefits or the need to repay any excess funds you’ve received.
By keeping your benefits administrator informed, you can avoid penalties and ensure that your benefits continue uninterrupted. Your personal injury attorney can also help by making sure your settlement is structured to minimize the impact on your benefits.
Why should I consult an attorney?
When you are receiving government benefits while pursuing a personal injury claim, you must talk to an attorney. A personal injury lawyer will not only fight for the compensation you deserve but also ensure that your benefits remain protected.
An attorney can help you structure your settlement in a way that avoids impacting your benefits, such as recommending a special needs trust or advising on how to allocate settlement funds. They can also guide you through the complex reporting requirements and ensure that your claim doesn’t affect your eligibility for benefits.
How can RTM Law help me protect my benefits during my injury claim?
We understand the importance of protecting both your injury claim and your government benefits. Our accident injury lawyers specialize in helping clients navigate the complex relationship between personal injury claims and government benefits, ensuring that you receive fair compensation while safeguarding your support.
If you’ve been injured in a pedestrian accident and are concerned about how a settlement might affect your government benefits, our team can help. We will assist in structuring your settlement in a way that minimizes the impact on your benefits, providing peace of mind as you pursue the compensation you deserve.
Contact RTM Law for a free consultation.
Do you need compassionate support and effective representation?
No fees until we win. Available 24/7.
