Are Travel Expenses Covered Under Workers Compensation?

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Travel Expenses for Workers' Compensation | Form 25TGenerally speaking, mileage to go to and from treatment is covered under workers’ compensation if the client travels 20 miles or more roundtrip.  The current mileage reimbursement rate is $.565 per mile, but it is subject to change in accordance to the Internal Revenue Service guidelines.  If the Internal Revenue Service alters the mileage rates, whether they increase or decrease, the Industrial Commission will act in accordance to their updated rates.

What form should I fill out?

Clients are going to fill out a Form 25T which can be accessed on the NC Industrial Commission website. The form itself is simple to complete but it’s important to stay on top of documenting your mileage to and from treatment.  You may consider keeping a journal close by so you can document the date, where you are traveling, arrival and departure time, and mileage reading before and after appointment.  It’s a good idea to have it documented on both the Form 25T and your journal, since you will be submitting the form to the insurance carrier.  You may also consider making a copy of the Form 25T for your records.

How do I turn in my Form 25T?

The form will be submitted to the insurance carrier so it typically depends on what form of communication is already in place.  When you fill out your form for the first time and are ready to submit, it’s probably a good idea to send it to your workers’ compensation attorney first.  Your attorney can review the form and make sure everything is filled out before sending it to the insurance carrier.  While your attorney is reviewing the form, touch base with him or her and let them know you would like to verify how to submit it to the insurance carrier.  After the first couple of times, you should be able to complete the form and send it to the insurance carrier on your own.

When do I receive my reimbursement check?

Most clients will receive a reimbursement check from the insurance carrier within a couple of weeks.  It is essential clients are staying on top of filling out their forms on a weekly basis and submitting them in a timely manner.  If you have questions about mileage reimbursement for treatment, Form 25T, etc. you should consult with your workers compensation attorney.

Is Gross or Net Income Used To Determine the Average Weekly Wage in Workers’ Comp Cases?

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If you have been injured by an accident at work, you will find it is in your best interest to meet with an attorney as soon as possible to be sure your rights are being protected. When you meet with an attorney, you will likely find that one of the first questions they ask you as they begin working on your file is “how much were you making at your job?”

Workers' Compensation Questions

Your income at your job prior to the accident is important to your workers’ compensation case because it allows your attorney to determine your “average weekly wage.” Your average weekly wage is the calculation used to determine your “comp rate,” which equals 66% of your average weekly wage.After your attorney determines your average weekly wage using your gross income, your comp rate (which is the amount you will be paid until you either return to work or a settlement is reached) will be determined by calculating 66% of your average weekly wage.

As you can see, your average weekly wage is the number that ultimately determines the amount of money you will be entitled to receive while you wait for a settlement in your case or wait to appear in front of the Industrial Commission. Your attorney will use an average of your gross income prior to your injury to determine the average weekly wage for your case.

Do I Have To Pay Taxes On Workers’ Compensation Settlements?

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The task of fighting for, being approved and actually receiving your workers’ compensation settlement is daunting enough, but what are you to do when you file taxes? Do you pay taxes on the settlements? Should you be setting money aside to cover that?

Circling a Date on CalendarThe answer to your question is no. Workers’ compensation settlements are fully tax-exempt if paid under the Workers’ Compensation Act; according to Publication 907, “Workers’ Compensation for an occupational sickness or injury if paid under a Workers’ Compensation act or similar law” is exempt.

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Can I Collect Rent If I’m Surrendering Rental Property in Bankruptcy?

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Person Writing on LaptopRental properties can be a great source of income until a renter moves without notice or fails to pay or that rental income starts to be used for your personal household expenses.  As situations arise, many people are finding it necessary to file bankruptcy and surrender the extra properties and the mortgages that come along with those properties.  When you surrender a rental property in bankruptcy, you are in essence surrendering your interests and rights to the property.  Therefore, you are not eligible to collect rent while in bankruptcy.

Additionally, the bankruptcy Trustee sees this as unprotected funds and will request the received funds to go to the creditors.  Furthermore, tenants are always informed if a house is being surrendered in bankruptcy.  Your tenants may be well aware of their rights and have the responsibility to report a debtor who tries to collect rental income while in bankruptcy.

Once you have been discharged of your debts and have received a final decree that officially closes your case, you may begin to receive rental income.  However, approach this scenario with caution.  Even though you have completed your bankruptcy the Trustee has the ability to reopen your case and require you to pay him all the funds you had received after your discharge.  So, you definitely need to weigh your pros and cons.  If this situation sits in your future horizon, you should discuss this with your bankruptcy attorney prior to your discharge.  Moreover, if the tenants are aware of the circumstances, they may not even be willing to pay rent while still living in the home.  Since the property is still in your name until the bank forecloses, you may engage in the eviction process.  Or you could insist on the tenants paying enough to cover homeowners insurance or property taxes.  If there is a homeowners’ association linked to the home, whoever lives in the property should stay current with the HOA.

We typically tell our clients to stop collecting rent when they decide to file for bankruptcy. Instead, the tenants should pay rent to the bankruptcy Trustee or stop paying rent all together if they no longer wish to stay in the house. This ensures the bankruptcy client is not doing anything to jeopardize the success of their bankruptcy.

Do Credit Repair Services (After Bankruptcy) Actually Work?

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Credit Card Companies May File a Proof of ClaimIn this age of information it can be tough to discern which tasks we are capable of handling ourselves and which tasks we should leave to the professionals.  As bankruptcy lawyers we have clients who contact us on a regular basis and ask if they should hire a credit repair company to rebuild their credit. In short, we don’t think so.

In the case of repairing your credit after bankruptcy, an individual is perfectly capable of resurrecting his or her own credit score.  Research is all what it comes down to and having the time to fill out forms and make certain phone calls.  Six months after filing, we suggest pulling your credit report from all three credit bureaus: Equifax, Experian and TransUnion (you can pull your credit report for free once a year by going here).  You should examine these reports to make sure all debts listed in your petition have been discharged through your bankruptcy.  If a credit or collection agency has failed to report correctly, it will be up to you to be your own advocate.  First, you should send, in writing, a letter to the creditor stating when you filed bankruptcy, your case number, when you were discharged from all your debt and a request that they correct the entry with all three bureaus.  Next, go to the individual credit bureaus websites and determine the process of filing a dispute against the creditor that is not reporting correctly.  If the battle continues and you need a legal hand, you should contact your bankruptcy attorney: they should be able to fax over the necessary information to clear up any matter.

If a creditor still fails to accurately report the discharge of your debts to the credit bureaus then they could be sanctioned for violating federal laws. You could also report them to the Federal Trade Commission.

As in everything, it is important to document as you communicate with these companies.  Although they are required to document as well, it is nice to have your own personal reference, especially if you are dealing with a difficult or large company.  Make sure to stand your ground and know your rights!