Question about severance pay

[anmartin31]

I havent worked since Feb due to medical complications, found out on Friday that my dept was closing and I would be getting a severance payment as I had been there 5 years. I am contemplating turning it down due to my attorney saying that I cant have any income, my husband makes $37000 a year and we are a family of 4, its well below the median in Washington state.
Also, I am pregnant and on DSHS medical, would taking the severance pay jepordise my medical benefits?
I really could do with the money as I have nothing bought for the new baby and he arrives in 9 weeks, but i guess I am afraid to take it. We will be filing CH7 in Oct.
TIA

[lrprn]

Two quick questions first so we can help you better....how much is the severance payment? Is it a one-time payment or disbursed in portions?

[anmartin31]

I can get it either in one lump sum or seperate payments. It will be roughly $3000 total.

[lrprn]

I can get it either in one lump sum or seperate payments. It will be roughly $3000 total.

With a new baby coming, if you take the bonus as a lump sum now, I'm sure you could spend $3,000 completely on the baby and other legitimate family needs before you file.

With your husband's income being only $37K for a family of 4, adding $3K to your combined income if you take the severance will not put you over the median for your state. Unless there are other circumstances that you didn't share, I don't understand why your lawyer is worried about you adding $3K of income - did he/she explain their reasoning about that? Could you have possibly misunderstood your lawyer?

Also, I am pregnant and on DSHS medical, would taking the severance pay jepordise my medical benefits?

I don't know. This would be an excellent question for the HR person at your firm who has been handling your medical benefits.

[OhioFiler]

I would find out the effect of the payment on your insurance coverage before I worried how it would effect your BK, which is unlikely in a negative sense.

[anmartin31]

Ohioflier, I did some research and DSHS counts severance as income. I am going to ask HR is they can hold the severance until after the baby is born as my medical is more important.

[OhioFiler]

Ohioflier, I did some research and DSHS counts severance as income. I am going to ask HR is they can hold the severance until after the baby is born as my medical is more important.

The question then becomes will $3,000 severance actually effect your DSHS. I don't have any idea but I'd try to find out. Legally, your employer can't hold your severance pay.

[anmartin31]

DSHS would see it as income for the month and would stop benefits until my spend down was back to zero. I was thinking about asking my ex employer to post date the check or delay the severance until after the baby is born.