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Must California Personal Injury Settlement Proceeds be Reported to EBT?

The Supplemental Nutritional Assistance Program (SNAP) is administered by the U.S. Department of Agriculture (USDA). Its purpose is to provide assistance in purchasing healthy food for families with little or no income. SNAP benefits are distributed to all 50 states. SNAP benefits are directly deposited into Electronic Benefits Transfer (EBT) accounts of qualified recipients, and those recipients are able to use EBT cards to pay for food at supermarkets, convenience stores and other businesses.

Non-Recurring Lump Sum Payments

In the State of California, there are complicated limits on income and resources to be eligible for SNAP benefits. A personal injury settlement or verdict can operate to disqualify a recipient of SNAP benefits, but must be reported since it affects the income and resources formula that SNAP benefits are based upon. Funds derived from any such settlement or verdict would be classified as a non-recurring lump sum payment.

Compensation for Permanency of Injury

What comes to issue is how much of that lump sum payment is compensation for permanency of injury. If an individual is receiving SNAP benefits, the involvement of an experienced and dedicated personal injury lawyer is required so that the victim can keep as much of his or her net proceeds as possible while still remaining eligible for SNAP benefits.

Contact Maison Law Right Away After an Accident

After being in an accident that was caused by somebody else anywhere in California, contact our California Personal Injury Lawyers and advise us of your accident and the fact that you are a SNAP recipient. We’ll be pleased to consult with you on your injury and how SNAP benefits might be affected if you receive a lump sum settlement or award. Our objective is to always have our clients receive the highest amount of net proceeds that they deserve in any settlement or verdict.


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