There can be some impact of pre-settlement funding on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits. Whether you’re working with an attorney to get maximum benefits or are concerned a personal injury settlement can affect your SSDI benefits, Fund Capital America is here to help. Please continue with our social security and pre-settlement funding insights to learn more.
Getting Financing for SSDI
Depending on your case, you can get pre-settlement funding during an SSDI appeal. It can take weeks or months for a case to settle, so many attorneys that practice SSDI law work on a contingency fee. Settlement funding can provide a firm with the cash flow required to litigate a case and the client with the funds they need now.
Social security pre-settlement funding is often obtained very quickly. It can be used to cover any type of cost or expense. Equaling a portion of the expected settlement amount, it comes with no hidden fees and is easier to qualify for than traditional credit or loans. And, if the client puts the funding/future settlement proceeds into a special needs trust, they won’t count as income or trigger any eligibility concerns.
Can I Get Advance Payments On Social Security Benefits?
Under the Code of Federal Regulations, you can receive a one-time emergency advance payment if eligible for benefits. This is available only to an individual or their spouse who is initially applying for benefits and is experiencing a financial emergency that impacts their access to food, shelter, clothing, or medical care. However, proceeds from advance payments are recoverable, whether via retroactive payments or reductions in benefits. Therefore, pre-settlement funding may still be advantageous to a personal injury client.
Could I Lose Social Security with Pre-Settlement Funding?
Social Security comes with a lot of red tape. Having an attorney represent you can address some challenges. For example, if you’re injured in a car accident due to a reckless driver, receiving a settlement may or may not affect your benefits. With SSDI, your eligibility is typically based on how long you’ve worked before having a disability; it’s not based on the severity of the disability or what you earn. Therefore, it isn’t usually affected by a large personal injury settlement.
However, SSI is different because it’s for low-income individuals with disabilities. It is primarily need-based. Your income must be significantly limited for you to qualify, so a big personal injury settlement that exceeds the federal limits can lead to having your benefits reduced or terminated. While a lawsuit settlement generally isn’t reported for SSDI benefits, it must be reported within 10 days of being received if you have SSI benefits.
To avoid this scenario, you should:
- Keep all documentation about your income and benefits received.
- Learn what counts/doesn’t count towards SSI.
- Hire an experienced Social Security benefits lawyer.
Contact Fund Capital America for More Information
Fund Capital America issues fast non-recourse pre-settlement funding for a wide range of cases. After an accident involving a personal injury, a plaintiff may need financial assistance to cover numerous expenses, even if they receive Social Security benefits. If you have additional questions about Social Security and pre-settlement funding, feel free to contact us by submitting our online form or calling 855-870-2274.