Making ends meet has never been easy, and in today’s economic climate, it can feel almost impossible just to put food on your table. Many people rely on SNAP benefits, a.k.a. food stamps, but these benefits are often based on how much money you earn and your financial resources. Accepting a personal injury settlement might affect your food stamps, depending on your circumstances.
When applying for or receiving food stamps, your income and financial resources may influence eligibility, and a settlement may be counted as part of your income. If you earn too much, you are ineligible for food stamps. This means that accepting a settlement for a personal injury could possibly cost you your food stamps. However, this is not the case for everyone, as not all parts of a settlement are counted as income. An attorney can help you figure out if there is a way to accept the settlement and keep your food stamp benefits.
Receive a private, free case analysis by calling our Paterson, NJ personal injury lawyers at Agrapidis & Maroules, P.C. at (201) 777-1111.
How Injury Settlements May Affect Eligibility for Food Stamps
A person may be eligible for food stamps if they meet specific requirements regarding their earnings and financial resources. According to the New Jersey Department of Human Services, your income and household size play crucial roles in whether you are approved for food stamps.
Income is a major factor in getting food stamps, and a settlement may be considered part of your income when determining whether you are eligible, depending on your damages. The bigger your household, the higher your income can be while still being eligible.
Depending on the size of your household and the size of your settlement, you might become ineligible for food stamps after accepting the settlement if the settlement counts as income. Certain damages, particularly economic damages, might not count as income, and you should talk to your lawyer about them.
What Happens If I Accept a Settlement While on Food Stamps in New Jersey?
Before you accept a settlement for an injury, talk to your attorney about how this might affect things like food stamps or other forms of assistance or benefits.
If you accept a settlement while also receiving food stamps, you could become ineligible to receive food stamps in the future, depending on the situation. Remember, parts of the settlement may be considered as part of your financial resources, and food stamps are dependent on income and financial resources. However, not every part of a settlement may count, and an attorney can help you determine what may or may not count against you.
If the settlement is significant, you might no longer be eligible for food stamps, and your benefits may be terminated. However, this is not true for every person. If your settlement is not very large, you might still be eligible.
Will I Lose My Food Stamps After Accepting an Injury Settlement?
An important question to ask our New Jersey personal injury attorneys is whether you could lose your food stamps and other similar benefits if you accept a settlement in an injury case. The answer is that you might, but not necessarily.
If you receive a settlement as a one-time, lump-sum payment, it might put you over the income limit for food stamp eligibility. However, a structured settlement might help avoid losing your benefits, depending on the overall size of the settlement and how it is structured.
If your settlement is paid out over time in smaller installments, it might not make you ineligible for food stamps, depending on your other income and household size. If you are injured, you might not have any other income during this time, and you may be more likely to qualify for food stamps and SNAP benefits, possibly even with somewhat greater financial resources after a settlement.
Settlements and Food Stamps for Families with Seniors or People with Disabilities
People with household members who are aged 60 or older or have disabilities may be approved for food stamps based on somewhat different eligibility criteria.
Generally, income requirements are a bit higher, as these household members often have more expensive care needs. This means that a settlement may be less likely to interfere with your benefits.
To make matters more complicated, many people in this situation also receive other forms of assistance designed for those with disabilities or those over a certain age. You should talk to your attorney about whether a settlement could affect those benefits, too.
Are Parts of Your Settlement Not Considered Income for SNAP Benefits?
While a settlement may affect your food stamps because it is considered part of your income, not every part of the settlement is treated this way. Compensation for certain kinds of damages is not considered income and should not be used to terminate your food stamps.
Settlements for economic damages may not be considered income because it is like a reimbursement for money you already spent or lost or will lose because of your injuries. For example, if your settlement is worth $20,000, but half of it is for medical bills you incurred, only $10,000 may be considered income.
Should I Accept a Settlement if I am Currently Receiving Food Stamps in New Jersey?
Whether you should accept a settlement is entirely up to you. If you are worried about your food stamps or other benefits that are dependent on income and financial resources, ask your lawyer for advice.
Some settlements are so large that plaintiffs will not have to worry about their basic necessities anymore, and they might no longer need food stamps. For many, this is far from a problem, and they may be relieved that they no longer have to rely on food stamps for support.
If your settlement is not so life-changingly large, accepting a settlement might be problematic, as you might still need food stamps to keep yourself afloat. Your attorney might be able to help you work out a structured settlement that allows you to keep your benefits while also getting the settlement money you need and deserve.
Contact Our New Jersey Personal Injury Attorneys for Help Now
Receive a private, free case analysis by calling our Ridgewood, NJ personal injury lawyers at Agrapidis & Maroules, P.C. at (201) 777-1111.