Past Due Child Support Can Intercept Payments From Lump Sum Settlements Paid By Insurers
JENKINTOWN PERSONAL INJURY ATTORNEYS
Act No. 109 of 2006 was signed into law by Governor Rendell on July 7, 2006. The Act permits the Department of Public Welfare (which collects past due child support) to intercept overdue child support from lump sum monetary award or settlements paid by insurers. In order for DPW to have rights to intercept payments, the “net proceeds” must be greater than $5,000. (“Net Proceeds is money paid to the claimant after attorneys fees, costs, unpaid medical expenses, etc.) Before distributing any monies, the attorney is required to obtain a written statement from the client concerning the amount of the arrearages. The attorney is also required to verify the information by doing a lien search, usually done through the DPW website.
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