Legal Blog
Social Assistance and ODSP recipients
Wednesday, February 20, 2008
Accidents happen to everyone. However, if you were receiving social assistance or disability payments you must be aware of some important factors.
Generally, the government of Ontario has a right to "claw back" any money a person received from a legal settlement for a wrongful act. This can come into effect if you were receiving payments before or after the accident.
As a recipient you are obliged to notify the government about any possible monies you might receive from a legal settlement for a wrongful act. Typically, the government will require one to sign an assignment which basically gives the government the right to take their portion of monies paid to you from your settlement. Failure to execute the assignment can result in a suspension of payments to the recipients.
Thankfully, there are some exemptions that do apply with respect to what the government can't touch. In an award for damages from a wrongful act under the Ontario Disability Support Program, $100,000 can be exempt. In the case of an award for damages under the Ontario Works Act $25,000 can be exempt. Both exemptions apply to awards for damages that deal with pain and suffering only.
For more information with respect to the exemptions its best to talk to an Ontario personal injury lawyer.
At the law firm of Neinstein & Associates we have a dedicated and knowledgeable team of lawyers who have considerable expertise about legal settlements and the exemptions.