Do I Have To Pay Taxes On Workers’ Compensation Settlements?
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.
Can I Collect Rent If I’m Surrendering Rental Property in Bankruptcy?
Rental 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?
In 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!
Can I Be Paid for Travel Expenses During My Workers' Compensation Case?
Yes, a claimant may fill out a Form 25T and request to be reimbursed for travel expenses and mileage incurred due to medical treatment visits. However, not every trip will be reimbursed. In order to collect on mileage, the trip for the medical treatment must be more than 20 miles roundtrip. Moreover, special consideration for totally disabled claimants may be made per individual case.
How much are you able to be reimbursed per mile? This is mandated through the North Carolina Industrial Commission and the amount awarded is stipulated on the Form 25T. How much is awarded is dependent on the time frame during which one drove for the medical treatment. For instance, starting July 1, 2011, a claimant is awarded $.555 per mile. If the traveling occurred from January 1st to June 30, 2011, the claimant received $.51 per mile. The amount awarded does change from year to year. Therefore, it is important to check an updated Form 25T to determine the appropriate mileage reimbursement amount. You can do that by checking out this section of the North Carolina Industrial Commission’s website.
If you believe you are not being paid the compensation you deserve then you should contact an experienced workers’ compensation attorney.
Can I Get A Second Opinion On My Workers' Compensation Injury?
You can get a second opinion on an injury that occurred while at work.
When you are injured at work, the initial doctor that you see must be approved by the employer themselves or their workers compensation insurance agency. They will typically tell you to go to a physician who is under their workers’ compensation plan and who they use on a regular basis. You can, in fact, get a second opinion if you feel like it is necessary. If you feel like a second opinion is necessary we typically encourage you to contact a workers’ compensation attorney.
If you are located in North Carolina, you can get a second opinion from a licensed physician by requesting it from the insurance company and, if denied, by going to the North Carolina Industrial Commission. If the physician is located outside of the state of North Carolina, you must get approval from the Industrial Commission before the examination takes place. A downside to using a physician in a different state is that the employee is required to pay any travel expenses that are incurred to get to that doctor unless there is a reasonable explanation for why that doctor must be visited.
When you go to another doctor for a second opinion, the original physician or their representative has the right to be present. Also, everything that is found in this new exam must be disclosed. None of the information in this visit it privileged and must be shared with the employer, the original treating physician and the insurance agency.
There is a chance that you can begin to use the doctor who gave the second doctor as your primary doctor from the remainder of the treatment. To do this, you must have approval from the Industrial Commission. If you do get the approval, the employer must pay all expenses related to this doctor, including any travel expenses that it costs to get you to the office.
