Do settlement payments affect CalFresh eligibility? Friend getting $15k and worried about reporting

Yes, she absolutely must report this settlement payment to the county. For CalFresh, your friend needs to report any income changes when her household's total monthly income exceeds the Income Reporting Threshold (IRT). A one-time lump sum payment like a settlement is considered a resource in the month received, and she must report it within 10 days of receiving it. She can report it by: 1. Calling her county worker directly 2. Submitting the change through BenefitsCal.com 3. Visiting the local office in person 4. Mailing in a written statement Make sure she keeps documentation of the settlement showing the exact amount and when it was received. The good news is that for CalFresh specifically, the resource limit is higher than it used to be - $4,250 for most households. However, if she's also on CalWORKs Cash Aid, the resource limit is still $2,250 (or $3,500 if someone in the household is disabled or over 60).

tell ur friend she NEEDS 2 report it ASAP!!! my cousin didnt report a insurance payout and ended up owing like $2000 back to the county plus they cut her off for 6 months for "fraud" even tho she didnt even know she had to report it. the county calls it "failure to report" and they take it super serious!!!

It depends if she's JUST on CalFresh or if she also gets CalWORKs cash aid too. They have different rules. For CalFresh, the asset limit is $4,250 for most households, but for CalWORKs it's only $2,250. So if she's on both, the settlement might put her over the limit for CalWORKs but she might still qualify for CalFresh. She should definitely report it though - do you know which benefits she gets?

I work with benefit recipients and want to clarify something important here: lump sum settlements are treated differently depending on the program. For CalFresh specifically, the $15,000 settlement is counted as a resource in the month received, not as income spread across months. Here's what will likely happen: 1. In the month she receives the settlement, her resources will exceed the $4,250 limit 2. This will make her ineligible for CalFresh for that month 3. As she spends down the money (on rent, bills, etc.), once her resources drop below $4,250 again, she can reapply She should: - Report the settlement within 10 days of receiving it - Keep ALL documentation showing how she spends the money - Reapply once her resources are under the limit again The county will likely discontinue benefits temporarily rather than permanently. This is NOT fraud as long as she reports it promptly.

i had somthing similar happen last yr but mine was only $6000 from a slip and fall case. i reported it right away and they stopped my calfresh for 2 months until i showed them i used most of it for back rent and medical bills. its stressful but better than getting hit with an overpayment later on!! they do check bank accounts sometimes so dont think they wont find out

Try calling your county office to ask about this specific situation, but GOOD LUCK actually reaching anyone! I spent 3 days trying to get through to my worker about a resource question and kept getting disconnected or stuck on hold forever. Finally I found out about this service called Claimyr that got me through to a real person in 20 minutes instead of hours on hold. They have a video showing how it works at https://youtu.be/jzISHxCPLwE - basically they hold your place in the phone queue and call you back when they reach a person. Your friend should check it out if she has trouble getting through to report this settlement.

One more important thing your friend should know: if she spends the settlement money on exempt resources, those won't count toward the limit. Exempt resources include: - A home she lives in - One vehicle (if used for transportation) - Essential household goods - Property essential for employment/self-support - Certain retirement accounts If she uses the settlement for these purposes, she should document it carefully. For example, if she pays off her car or makes home repairs, those expenditures won't count against her resource limit. But luxury items or keeping the cash in a bank account will count.

Just to emphasize what others have said - the MOST important thing is reporting within 10 days. Even if the settlement makes her temporarily ineligible, proper reporting protects her from claims of fraud or intentional program violations. She should call her worker, but also submit something in writing (either through BenefitsCal or by mail) so there's a paper trail showing she reported it. She should keep a copy of whatever she submits along with notes about when she called and who she spoke with.

my sister just had this EXACT situation but with SSI backpay not a settlement. the caseworker told her to get a letter from her lawyer stating exactly what the money was for and when she got it. they ended up giving her like 3 months to spend it down to get back under the resource limit. she had to bring in proof of what she spent it on too. tell ur friend to ASK FOR TIME to spend it down!!!!

I just want to add something that might help your friend feel less anxious about this situation. I've been on CalFresh for about 3 years and have had to report changes several times - it's actually pretty routine for the county workers to handle these kinds of situations. The key thing is that reporting a settlement payment is NOT the same as committing fraud. The county expects people to have changes in their circumstances, and they have processes in place to handle it. As long as she reports it within the required timeframe (10 days), she's doing everything right. Also, even if her benefits get temporarily suspended while she's over the resource limit, her case doesn't just disappear. When she's ready to reapply (once her resources are back under $4,250), she can often get benefits started again pretty quickly since her basic eligibility information is already in the system. One last tip: when she calls to report it, she should ask the worker to explain exactly what documentation they need from her and what the next steps will be. Don't be afraid to ask questions - it's better to understand the process upfront than to worry about it later!

Just wanted to add one more resource that might help your friend - many counties have CalFresh navigators or community partners who can help walk people through reporting requirements and the reapplication process. Organizations like legal aid societies or food banks often have staff who are really familiar with these rules and can provide free assistance. If your friend is feeling overwhelmed about navigating this on her own, she might want to reach out to a local food bank or community organization that helps with benefits. They can sometimes even help make the initial call to report the settlement or be on the line with her for support. The California Association of Food Banks website has a directory where she can find local resources. Sometimes having an advocate who knows the system can make the whole process feel less scary and ensure she doesn't miss any important steps or deadlines.

I'm a newcomer here but wanted to share what I learned when I had a similar situation last year. When I got a workers comp settlement, I was terrified about reporting it because I didn't understand the rules at all. What really helped me was calling 211 (the community resource helpline) before I called the county. They connected me with someone at a local community action agency who explained the whole process to me over the phone for free. She even helped me practice what to say when I called my caseworker! One thing I wish someone had told me earlier: even though losing benefits temporarily is scary, most counties are actually pretty understanding about these situations if you're upfront about them. My caseworker told me they deal with settlements and one-time payments all the time, and as long as people report them properly, it's just routine paperwork for them. Your friend is being smart by asking questions beforehand instead of just hoping for the best. That shows she wants to do the right thing, which is exactly the attitude that will help her get through this smoothly!

I'm new to this community but wanted to add something that might be helpful - make sure your friend understands that the 10-day reporting requirement starts from when she actually receives the settlement money, not when she finds out about it or when the case settles. So if her lawyer is holding the funds for any reason or there are delays in processing, she has 10 days from when the money actually hits her bank account or when she gets the check. Also, if she's working with a lawyer on the settlement, they might be familiar with benefit reporting requirements and could potentially help her understand exactly what documentation the county will need. Some personal injury attorneys have experience with clients who receive public benefits and know how these lump sums affect eligibility. One more thing - when she does report it, she should ask specifically about the "spend down" period and whether her county has any specific guidelines about what types of expenses are acceptable. Some counties are more flexible than others about giving people time to use the money for legitimate needs before benefits are discontinued. Your friend is lucky to have someone looking out for her and asking these questions ahead of time. Being prepared will make the whole process much less stressful!

I'm new to this community but wanted to share something that helped me when I was in a similar situation. When I received a settlement payment while on CalFresh, I was really nervous about the whole process, but I found that being proactive and organized made everything go much smoother. Here's what I did that might help your friend: 1. I created a simple timeline document showing when I received the settlement, when I reported it, and when I spent the money (with dates and amounts) 2. I kept a folder with all documentation - the settlement letter, bank statements showing the deposit, and receipts for everything I spent it on 3. I took notes during every phone call with my caseworker, including their name, date, and what we discussed One thing that really helped was asking my caseworker to walk me through the timeline of what would happen next. They explained that my case would be reviewed, benefits would be suspended while my resources were over the limit, and then I could contact them once I was back under $4,250 to restart benefits. Having that roadmap made the whole thing feel much more manageable. Also, don't forget that your friend can use some of the settlement for things that might help her long-term - like getting her car fixed so she can get to work, or paying off debt that was costing her money in interest. These aren't just "spending down" - they're smart financial moves that happen to also help with her benefit eligibility. Your friend is going to be fine as long as she reports it promptly and keeps good records. The system is designed to handle these situations!

I'm new to this community but wanted to add something that might be really helpful for your friend's peace of mind. I went through something similar when I got an inheritance last year while on CalFresh, and one thing that really helped was understanding that this is actually a pretty common situation that county workers handle regularly. What I learned is that there's a difference between "voluntary" and "involuntary" resource changes. A settlement payment like your friend's is considered involuntary - she didn't choose to have the accident or seek out this money, it just happened to her. While she still has to report it and follow all the same rules, I found that caseworkers tend to be more understanding and helpful when it's clearly not someone trying to game the system. Also, here's something I wish I'd known earlier: when she calls to report it, she should ask about getting a "reasonable time period" to spend down the resources. Some counties will give you 30-90 days to get back under the limit before they officially discontinue benefits, especially if you can show a plan for how you're going to spend the money on legitimate needs. One more practical tip: when she's documenting her expenses, she should keep receipts for EVERYTHING, even small purchases. I had to show exactly how I spent down to get under the resource limit, and having complete records made the reapplication process much faster. Your friend is being really smart by planning ahead like this. The fact that she's asking questions and wants to report it properly shows she's approaching this the right way!

I'm new to this community but wanted to share something that might help your friend feel more prepared when she makes that call to report the settlement. When I had to report a large resource change last year, I actually wrote down all my key information beforehand so I wouldn't forget anything important during the call. Here's what I recommend she have ready: - Her case number and personal info - The exact amount of the settlement ($15,000) - The date she received/will receive the money - What the settlement was for (car accident) - A rough plan of how she intends to spend it (car repairs, bills, etc.) One thing that really helped me was asking the caseworker to confirm they received my report and getting a reference number or date for the call. That way I had proof that I reported it within the 10-day window if any questions came up later. Also, your friend should know that even though this feels overwhelming right now, once she gets through the initial reporting and any temporary benefit suspension, things will get back to normal. The hardest part is just making that first call and being honest about the situation. She's really lucky to have someone like you helping her research this ahead of time. Going in prepared will make all the difference in how smoothly this process goes!

I'm new to this community but wanted to share something that really helped me when I was in a similar situation with a settlement payment. One thing I learned that hasn't been mentioned yet is that your friend should ask her caseworker about getting a written confirmation of her report, not just verbal confirmation over the phone. When I reported my settlement, I asked the caseworker to send me a letter or email confirming they received my report and what the next steps would be. This was incredibly helpful because it gave me something in writing that showed exactly what I reported and when, plus it outlined the county's plan for handling my case. Also, if your friend is feeling overwhelmed about making the call, she might want to consider having someone she trusts sit with her during the call for moral support. Obviously they can't speak for her, but just having someone there can make the conversation feel less intimidating. I had my sister sit with me when I made my report call, and it really helped keep me calm and focused. One more thing - if the first caseworker she reaches seems rushed or unclear about the process, it's totally okay for her to ask to speak with a supervisor or call back to get a different worker. She deserves clear information about how this will affect her benefits and what her options are. Your friend is going to get through this just fine. The fact that she's being proactive about reporting it shows she's handling this exactly the right way!