What Is the Department of Revenue Intercept Program for Massachusetts Personal Injury Cases?

The Department of Revenue (DOR) Intercept Program in Massachusetts is a process used by the Commonwealth of Massachusetts to collect unpaid child support or other state debts from various sources, including personal injury settlements or judgments. In the context of personal injury cases, the program is often used to intercept portions of any settlement or award to pay off outstanding child support obligations or other state debts that the injured person may owe, including back taxes.

How the DOR Intercept Program Works for Injury Cases

1. Child Support Arrears:
• Interception for Unpaid Child Support: If a person involved in a personal injury case owes past-due child support payments, the Massachusetts DOR may intercept a portion of their settlement to cover the arrears. This is especially common when the child support payments are overdue or have been in default for an extended period.
• Notice of Interception: If there are existing child support arrears, the DOR will notify the party (usually the plaintiff or their personal injury attorney) that they plan to intercept a portion of the injury settlement to cover the debt. This is typically done before the settlement is paid out to the claimant.
2. State Debts:
• Other Debts Owed to the State: In some cases, the DOR may also intercept personal injury settlements to collect other types of state debts, such as unpaid taxes, overpayments of public assistance (like welfare or unemployment benefits), or other government obligations.

What Happens During the Intercept Process?

• Notification to the Insurer or Attorney: When a personal injury settlement or judgment after a trial is reached that is worth more than $500, the insurance company issuing the payment has to check with the Department of Revenue to see if the person receiving the funds owes the DOR money. The Department of Revenue may then place a lien or freeze on the settlement amount. This is done to ensure that any owed debts are paid before the remaining funds are distributed to the claimant.
• Review of Settlement: If you are receiving a personal injury settlement and you have child support arrears or state debts, your personal injury attorney (or the insurance company) must notify the DOR. The DOR will then review the settlement and determine how much needs to be intercepted to satisfy the outstanding debts.
• Amount to be Withheld: The DOR will determine the exact amount of the settlement that should be intercepted, based on the outstanding child support or state debt. This amount is then deducted from your personal injury settlement before you receive the remaining funds.
• Payment to the State: The intercepted portion of the settlement is paid directly to the state (e.g., toward the child support arrears or other debts).
• Rest of the Settlement: The remaining portion of the settlement, after the interception, is paid to the claimant (or their personal injury lawyer).

Key Points to Know:

• Child Support and Other Debts: The program primarily targets unpaid child support obligations, but it may also be used to collect other debts owed to the state such as back taxes.
• Pre-Settlement: The interception typically occurs before you receive your settlement check, so the amount that you see in your final payout may be less than the agreed-upon settlement.
• Limits on Interception: The amount that can be intercepted is generally limited to the amount owed in arrears. If there are multiple debts, the DOR will prioritize them and apply funds accordingly.
• Notification Process: You should be notified if any portion of your settlement is being intercepted. This usually happens once the DOR becomes aware of your injury case, which is why it’s important to inform your attorney of any outstanding debts or child support obligations as soon as possible.
• Impact on Settlement: While the intercept program ensures that child support or state debts are paid, it can reduce the overall amount of money that you ultimately receive from your personal injury settlement.

How to Address Potential Issues with the DOR Intercept:

• Personal Injury Attorney’s Role: If you are facing a potential interception, your personal injury attorney can help you navigate the process, ensuring that the amount of the settlement being intercepted is correct and that any disputes with the DOR are handled appropriately.
• Resolving Debts: In some cases, it may be possible to settle or negotiate with the DOR to reduce the amount of debt owed, or to arrange a payment plan, which could minimize the amount intercepted from your settlement. This is why it’s better to tell your personal injury attorney as soon as possible that you might owe money to the Department of Revenue.

Conclusion:

The Department of Revenue Intercept Program in Massachusetts is a tool used by the state to collect unpaid child support or other debts from personal injury settlements. If you owe money for child support or other state debts, a portion of your settlement may be intercepted before you receive the funds. It is important to inform your personal injury attorney about any outstanding debts to ensure that this process is handled properly and that you are not caught off guard by an interception.

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