Public Assistance and Liens
© 1997 by Neighborhood Legal Services, Inc.
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What is a lien?

     A lien is a claim against property that may be used to repay a debt.

Is it true that if I own my own home, I will be asked to sign a lien before receiving public assistance?

     Yes, the Department of Social Services (DSS) will make you sign a lien. They do this to make sure that when your house is eventually sold or transferred, they will be repaid for any assistance they have given you.

Will I lose my house if I sign a lien?

     No. As long as you or your spouse live in your house, DSS has no right to sell it or to force you to move.

     But when your house is sold or transferred, DSS must be paid for the assistance it has given you. You may keep any money left over after paying them back.

What happens to the lien after I sign it?

     DSS files the lien in the County Clerk's office.

Will DSS help me pay the costs of owning my home while I am on public assistance?

     Yes. DSS must pay you a shelter allowance up to the maximum amount allowed to help you pay for some of the costs of owning your home. If you need information on the shelter allowance, feel free to call our office.

What happens if I refuse to sign a lien?

     DSS will not give you or your spouse assistance; but if you have children in your household, DSS must give your children assistance.

When I no longer need public assistance, can I get rid of the lien?

     Yes. But because the procedure is somewhat complicated, we suggest you contact a private attorney for help.

What if DSS makes me work in order to receive public assistance?

     If you had to take part in a work program sponsored by DSS in order to get assistance, the amount you received for that period should be deducted from the amount of the lien.

What if I received SSI benefits after I was on public assistance?

     If you were found eligible for SSI benefits and some of those benefits were sent directly to DSS, that amount should be deducted from the amount of the lien.

Do I have to sign a lien in order to receive Food Stamps?

No.

Do I have to sign a lien in order to receive Medicaid?

     Generally, no. But if you are elderly, special rules may apply. Call us in this case.

What should I do if I have other questions about liens?

Feel free to call us at 847-0650.

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