Owe money for child support? Pay it back from a workers’ comp settlement.

Warning for individuals with unpaid child support obligations and how it could impact a workers’ comp settlement in Michigan.

The Detroit Free Press is reporting on a man arrested for owing nearly $70,000 in unpaid child support debt. This article should be a warning for individuals who have large child support obligations and do not live up to their responsibilities.

We have many clients with child support obligations. It is easy to fall behind in payments when income is reduced or stopped. Here is how child support debt could impact a workers’ comp settlement.

A workers’ comp settlement is an attractive option for many of our clients. Benefits can be traded for a lump sum cash payment. This allows a person to do their own medical treatment and find a new job without interference.

Michigan law requires that child support obligations be included in a workers’ comp settlement. Friend of the Court (FOC) is responsible for enforcement and collection. A magistrate will not approve a settlement unless appropriate legal documentation is secured. A letter from FOC will typically satisfy this requirement.

A person who settles their workers’ comp case should be ready to give up 50% of their net proceeds to cover unpaid debt. We recommend speaking with an experienced workers’ comp attorney to ensure legal rights are protected.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 316-8033 for a free consultation today.

Related information:

The Big 3 Liens: Medicare, Medicaid, and Friend of the Court

Photo courtesy of Creative Commons, by danielmoyle.

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