Child support arrearages and workmans comp settlement (mi)

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Latest post 03-20-2011 12:25 PM by Kivi. 8 replies.
  • 03-19-2011 2:38 PM

    • dta629
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    Child support arrearages and workmans comp settlement (mi)

    I just got offered a lump sum of 25000 for a work injury, I owe 19,000 in arrearages for child support. Do they take it all or  a percentage of the settlement. thanks

  • 03-19-2011 3:12 PM In reply to

    • Drew
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    Re: Child support arrearages and workmans comp settlement (mi)

    You'll need to dig deeper--but I think they intercept 100%.



  • 03-19-2011 3:19 PM In reply to

    • dta629
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    Re: Child support arrearages and workmans comp settlement (mi)

    I would be more than happy to give 15000 of it, but 100% seems unrealistic when that leaves you with nothing after lawyers

  • 03-19-2011 3:21 PM In reply to

    Re: Child support arrearages and workmans comp settlement (m...

    Same question I asked on the other board on which you asked this question, but you asked it somewhat differently.  WHO, exactly, is paying this settlement, the insurance companyy?  How do they know what you owe in CS?

  • 03-19-2011 3:28 PM In reply to

    • dta629
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    Re: Child support arrearages and workmans comp settlement (m...

    The employers insurance company is paying it. Im not sure how they know what I owe but the Friend of the court sent me a letter stating that they are entitled to withholding a lump sum judgement, they just dont clarify if they are entitled to collecting 100% immediately.

  • 03-19-2011 3:54 PM In reply to

    • Drew
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    Re: Child support arrearages and workmans comp settlement (m...

    My read is that the system is designed to latch on to WC awards --but I'm way short of details.

    Apparently it is possible to seek an abatement /reduction of arrears via court order  --but you sort of need to do it before the  WC gets grabbed.   Its probably not worth 5000 of talent to chase  6000 of award reduction 

    But consider the reverse--if you turn down the $25,000 and take 0 as a scored earth plan--can they get the arrears out of you in any otherway--if NOT--you may have some barter power by a mere threat to reject offer.

    EG are you now permanently disabled to work?

    I'm not saying you don't owe  the 19,000---but if somebody wants to grab it all--I might threaten to sink it all.

    But do so with a clear understanding of how the MI rules work.



  • 03-20-2011 8:44 AM In reply to

    Re: Child support arrearages and workmans comp settlement (mi)

    Unpaid child support is one of if not the only outside lien to be placed on a comp claim, and paid before you get a dime, or your atty is paid.

    You owe that money, by agreement/court order... it's going to your ex....If your atty fees are oh, 15%, minus the 19K... $2250 net to you. And, when you  C&R a comp claim, you are agreeing to assume all further liability for any/all medical care you may require for this injury. You cannot use your own health coverage, or Medicare to pay for a work injury medical care.

    THink very carefully about any cash lump sum payment to close this claim... at least the medical. Unless of course you are ready to pay up on that retro child support. At some point, you will.

  • 03-20-2011 11:52 AM In reply to

    Re: Child support arrearages and workmans comp settlement (mi)

    dta629:
    I would be more than happy to give 15000 of it, but 100% seems unrealistic when that leaves you with nothing after lawyers

    It's quite possible 100% will be intercepted.  The lawyer Fees might not be used in the equation.  Additionally, you should know a surcharge might be imposed.  

    I have extracted some information (below) from the DHS website in your state.  I didn't see any specific information regarding taking only a percentage of your lump sum payment. 

    EXTRACTION Regarding Surcharge:

    NEW: Before 2010, surcharge was added to all cases with past due support owed (arrearages). The law changed to stop surcharge during 2010.

    Beginning in 2011, a judge may order surcharge to be added to a case that has arrearages. If surcharge is ordered by the judge, it will be added to the case every January 1st and July 1st and becomes a part of the total amount of support owed.

    The surcharge is a variable rate tied to 5-year United States Treasury Notes, plus 1%. Surcharge assessed under this variable rate will not compound.

    SOURCE:  http://michigan.gov/dhs/0,1607,7-124-5453_5528_29251---,00.html

    Ok  I'm not a lawyer.  This is only my opinion /suggestion.  Most Replys' are based on information provided by the "original post" (OP).

  • 03-20-2011 12:25 PM In reply to

    • Kivi
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    Re: Child support arrearages and workmans comp settlement (mi)

    In my state, which is not yours, the Child Support Enforcement Agency would be one of the lien holder claimants, except they probably have a higher priority than most other lien holder claimants, such as medical providers.

    I don't know what your WC claim is worth. You will have to discuss that with your attorney. However, I would expect the child support enforcement agency to get the entire 19k. Your atttorney fee may or may not come out of the remainding funds. This one definitely varies by state. Ask your atttorney about that one as well. You also should ask your attorney about any medical lien holders. If there are medical lienholders they will be paid from whatever is left over.

    While you may not be able to reduce the lien of the Child Support Enforcement agency, there may be some room for negotiation with the medical lien holders, if any.

    As a practical matter, however, the value of your claim in the WC system cannot be increased solely because of the CS lien.

    Finally, if this offer is the initial offer, there may still be room for further negotiation about the final amount of that lump sum and whether that does or does not include future medical expenses. If you don't have an attorney for your WC claim, now would be the time to get one.

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