Does SSDI Impact an Injury Lawsuit Settlement?

Overview about Injury Lawsuit Settlement and SSDI

SSDI or Social Security Disability Insurance is a federal program that helps out the disabled, especially those who cannot work with a relevant income source.

If you are on SSDI and considering to make an injury claim or filing a lawsuit on someone, many people would be keen to know if a favorable verdict leading to lawsuit settlement could impact the benefits they receive.

While SSDI should be made aware of your received wages since it provides you with income source, the general rule of injury settlements is that they are not wages, unless the court awards the settlement to the claimant as compensation for lost wages. For all settlements in lieu of punitive or exemplary damages, they are referred to as unearned income.

Effect of Injury Lawsuit Settlement on SSDI plaintiffs

While people under the SSDI program do not lose out on injury settlement, the settlement itself could turn out lesser than expected owing to SSDI. Injury plaintiffs sometimes find out that the settlement money is not as much as they expected. A plaintiff’s present position as a high-wage earner makes the case a high-value one since these cases take work history and wages into account. A person earning $30,000 a month is worth $1000 a day and the number of days adds a subsequent number of lost wages to the case itself.

Those on SSDI cannot claim on wage losses here since SSDI itself covers the wages, which ultimately leads to settlements that are not entirely satisfactory as one might expect them to be.

Clarity on Confusion between those receiving SSD and SSI benefits

Most people are confused about SSD and SSI and the impact of injury lawsuit settlement on their status quo. Both programs are intended for disabled people but have some differences.

• Supplemental Security Income (SSI): This is an SSA program for all kinds of disabled, blind, old, and poor people based on fulfilling their needs. Any income received by these people impacts the benefits they receive. A recipient of SSI should handle settlement money with the help of a lawyer since their benefits could be lost completely.
• Social Security Disability (SSD): This program is intended for disabled people who have an employment record and have consistently paid into the Social Security trust when filing taxes or deducted from their paychecks. To receive the benefits under this program, the person should fulfill the criteria of employment period and credits accrued within the time-frame. Social Security Disability Insurance (SSDI) needs medical evidence from the people before they are accepted to the program.

When a condition leads to a personal injury settlement, most people feel cash crunch for their daily needs especially since they cannot work or perform optimally; have several monthly bills to pay, and need to cover their medical expenses too.

A person getting Social Security Disability benefits get their entire settlement without deductions because the SSD program is dependent on work history and credits, not on the present financial situation. Those receiving SSI, though, would not be able to enjoy all the lawsuit settlement benefits since it is based on present income and meant to be a supplementary income program. A pay-out will reduce benefits and could render them ineligible for the program too.

In this regard, an ideal, experienced SSDI Lawyer can offer assistance to help you avail maximum benefits from the settlements. They can navigate the complex legal process ensuring favorable results, always. Contact such a lawyer from Legal Rights Advocates PLLC to discuss on SSDI-based cases today! Call us at (855) 254-7841 for a free consultation.