Can A Lawsuit Settlement Affect Regular Social Security Benefits?





Lawsuits may or may not affect a person’s social security benefits. Excessive damages awarded in lawsuit are not common, but large awards are common enough to be a problem. Large settlements may affect the amount of benefits a person qualifies, but it does not affect an individual’s social security checks as much as it will his Medicare premiums. The recipient does have to report the earnings to both organizations. The Social Security Administration will make any adjustments necessary to a person’s benefit check. The amount of money awarded in most lawsuits does not affect social security benefits.

When Do I Have to Worry About Damages Affecting Benefits?

The average lawsuit does not award the plaintiff enough money to affect his benefits. He can report the monetary award to his local Social Security Office without fear that he will lose money in his monthly check. Large awards from a corporation or a hospital might change this, but few people seek more than the damages lost plus additional money for the suffering the injury caused. Judges increasingly throw frivolous lawsuits out, so the dreams of becoming rich after a minor accident are even less likely now. This method of getting rich relied on a long shot chance to begin with.

What Else Should I Know?

Getting a large legal settlement may not reduce a beneficiary’s social security benefits. The rules for retirement benefits and disability benefits are different. When in doubt, a person on social security who win a large settlement in a course case should check with his lawyer about it. His lawyer may charge money for giving this advice, but the lawyer usually takes his fee from the settlement. If he does not want to pay the lawyer, he can ask his local social security office about the reporting rules.



8 Responses to “Can A Lawsuit Settlement Affect Regular Social Security Benefits?”

  1. i co-sighed for a car now the person is not paying for it ,i only have my social security check every month so i cannot pay for it ,is there anyway they can take mty check??

    • Joe says:

      NO they can not touch your check. your check can be touched by no one but the federal goverment,Child support,student loans, them kind of things.

  2. roger says:

    my settlement is for 100000.00 i have a lien 0f 89000.00 for worker compensation my lawyer said im only getting 40000.00 will that amount affect my ssi?

  3. test site says:

    Thanks for your write-up on the traveling industry. I will also like to include that if you are one senior taking into account traveling, it’s absolutely crucial that you buy travel insurance for older persons. When traveling, seniors are at high risk of having a health-related emergency. Getting the right insurance cover package on your age group can protect your health and provide you with peace of mind.

  4. I receive both ssi and ssd and got my 7000 dollar law suit check at the almost the end of the month and I needed a car and spent it, will it affect any of my ssi or and my ssd at all. I needed my car for my doctord and therapy and to go to stores and the bank, I also put in a 1000 in my savings account, can they touch that at all, I need it too for out of pocket expense’s just in case the car broke down also for my personal needs,will they touch anything or am I o.k.? sincerely, Samantha silva.

    • Ed says:

      Hi I just wanted to know if they social security messed with your ssi or ssd because of the large amount of settlement you received and if they bothered your money that you had in the bank. Thanks!

  5. luis says:

    I expecting some lawsuite money from a malpractice.I owe about 50,000 will they take my lawsuite money…ty

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