A personal injury settlement could affect your food stamps, depending on what you received compensation for and how your settlement was paid out, among other factors.
Do not let concerns about food stamp eligibility prevent you from seeking justice after an accident. Our Long Island personal injury lawyers will work with you to ensure you continue to receive whatever assistance you need even after you receive a settlement.
In This Article
Reading time: 5 minutes
- What is a Personal Injury Settlement?
- How Does Your Settlement Affect Your Food Stamps?
- How Do You Prevent a Settlement From Impacting Your Food Stamps?
- Who Do You Need to Report Your Personal Injury Settlement To?
- Is it Worth Seeking a Settlement if You are on Food Stamps?
- Call Our Personal Injury Lawyers for Guidance
What is a Personal Injury Settlement?
A settlement is money paid to the victim of someone else’s negligence or recklessness. You might be entitled to a personal injury settlement if:- You were injured in a motor vehicle accident involving a driver who failed to obey traffic laws
- You slipped or tripped and fell on someone else’s property because the owner failed to adequately address an obvious hazard
- You were bitten by a dog whose owner failed to control or contain the animal
- Your doctor made a mistake during treatment or failed to treat your condition at all
For a free legal consultation, call (516) 932-0400
How Does Your Settlement Affect Your Food Stamps?
Your eligibility for the Supplemental Nutrition Assistance Program (SNAP) depends in part on your monthly and annual income levels. Any increase in income, such as from a personal injury settlement, could affect how much you receive or even make you ineligible for benefits. Note that such changes in eligibility only apply if you actually receive the money yourself. Part of your settlement is intended to help you pay debts you have already accumulated, so it is not really “yours” to do with as you please. In some situations, like if you owe money to a medical provider, the provider’s insurer might receive the money they are owed directly without you ever touching the money or having to take additional action. This portion of your settlement does not count as income and should not affect your food stamps. It is also worth pointing out that, if you suffered a severe injury that prevents you from working, your income has already decreased. Part of your settlement will go towards replacing that lost income and will not count as an increase.How Do You Prevent a Settlement From Impacting Your Food Stamps?
You might have several options when it comes to preserving your food stamps, depending on your situation.Consider When You Receive Settlement Payments
One option is to think strategically when deciding how your settlement will be paid out. For example, a lump-sum settlement grants you immediate access to a large amount of money, which could disqualify you for SNAP benefits. A structured settlement, where you receive a little money at a time, could potentially preserve your benefits. In some cases, establishing a “Special Needs Trust” (SNT) could be a solution worth considering. As these are technical and potentially complex issues, it is best to speak with an experienced personal injury lawyer so that your best options can be considered in the very specific context of your situation.Consider What Your Settlement Covers
Another option might be to ensure that most, if not all, of your settlement is earmarked for economic rather than non-economic damages. As previously discussed, any money you use to pay for accident-related expenses, including medical care, will not count towards SNAP’s income limits. Non-economic damages, like pain and suffering or impaired quality of life, will have the biggest impact on your benefits. Your lawyer will work with you to consider how much to ask for in non-economic damages so they do not negatively affect your food stamps.Click to contact our personal injury lawyers today
Who Do You Need to Report Your Personal Injury Settlement To?
You will have to inform SNAP and anyone else that you receive assistance from, such as Medicaid and the Social Security Administration, about the settlement. They will then adjust your benefits, if necessary. Trying to hide your settlement will not help you keep your benefits or avoid taxes in the long run. It will most likely only cause you unnecessary trouble with the government, and you might even have to pay back money that you were not qualified to receive. If you are unsure of who to report your settlement to or how to do so, speak with our injury lawyers. The sooner you figure out how to handle your settlement, the sooner you will be able to focus on rebuilding your life after the accident.Complete a Free Case Evaluation form now
Is it Worth Seeking a Settlement if You are on Food Stamps?
There are many potential benefits to pursuing a personal injury settlement:- You will no longer have to worry about paying for accident-related expenses, including probable future expenses (e.g., ongoing medical care).
- You will replace any income you lost when your injuries prevented you from working, and you will be able to support your family even if your injuries keep you from finding another job or returning to work.
- You will be able to hold the at-fault party accountable for the harm they did, thus ensuring that justice is done and your community is made safer.
Call Our Personal Injury Lawyers for Guidance
If you have any questions or concerns about how your personal injury settlement will affect your food stamps or other forms of assistance, Friedman & Simon, L.L.P., is here to provide clarity and experienced guidance. Call now for a free consultation from our legal team. We will assist you in Spanish, Greek, Bengali, Creole, or another language you prefer.Call or text (516) 932-0400 or complete a Free Case Evaluation form