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Need help with this

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Latest post Mon, Dec 12 2016 9:35 AM by Taxagent. 7 replies.
  • Mon, Dec 5 2016 2:26 PM

    • Lisa0617
      Consumer
    • Top 500 Contributor
    • Joined on Mon, Aug 1 2011
    • VA
    • Posts 91

    Need help with this

    I was on long term disability from my place of employment. they made me file for social security disability which I did and I was approved. I got back pay and to my surprise long term disability wants almost all of my back pay. I have decided that I am not going to pay it, I don't care if they try to ruin my credit as it is already ruined. my question is other than try to get a judgement against me, what else can they do to me? All the money in the bank is from social security. Nothing else is in my name except one car I co own with my husband.

  • Mon, Dec 5 2016 4:09 PM In reply to

    Re: Need help with this

    Presumably, you'll be sued and the plaintiff will get a judgment and try to enforce the judgment against non-exempt assets and income.  If you have no non-exempt assets and income, then so be it.  Not really sure what else your question contemplates.

  • Mon, Dec 5 2016 6:39 PM In reply to

    Re: Need help with this

    Lisa0617:
    I don't care if they try to ruin my credit as it is already ruined. my question is other than try to get a judgement against me, what else can they do to me?

    They can sue you and get a judgment.

    Lisa0617:
    All the money in the bank is from social security.

    Here is the problem:  only the equivalent of 2 months worth of social security is safe from a bank levy.  So if your monthly SSI benefit is $2500 and you have $10,000 in the bank then $5000 is exempt from seizure but the other $5,000 can be levied to pay the judgment.

    Lisa0617:
    I got back pay and to my surprise long term disability wants almost all of my back pay.

    I don't know why you are suprised.  Read the policy.  You do not get to double dip.  If you get SSI you are required to pay the money back.  It is reprehensible that you think it is perfectly acceptable to refuse to pay it back and keep the money from both the long term policy and the tax payers.

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • Tue, Dec 6 2016 11:09 AM In reply to

    Re: Need help with this

    Lisa0617:
    I have decided that I am not going to pay it,

    Then you'd better not keep any money in bank accounts that have your name on it.

    Even joint accounts with your name on it might be fair game above the SS deposit protection.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Thu, Dec 8 2016 1:56 PM In reply to

    • Kivi
      Consumer
    • Top 25 Contributor
    • Joined on Sat, Jan 1 2005
    • CA
    • Posts 6,363

    Re: Need help with this

    If you have a joint checking account with your spouse (or anyone else for that matter), get your name off of it and get a separate account for your SSDI payments (since SSA pretty much requires direct deposit these days).

    I have not looked up MA exemptions, but your vehicle, especially if it is older or has a lien on it, may be safe. Old cars do not fetch much at auction, especially after considering the costs associated with executing against and seizing them. If the car has a lien on it, the lienholder gets their money first and then anything above and beyond that amount may go to the judgment creditor, which may not be enough to even offset the costs of seizing the vehicle. Moreover, most people owe more on their cars than they are worth, so most judgment creditors also won't go after a car with a lien on it, unless it is an unusually valuable antique (or something similar) and there is reason to believe that there is some real "equity" in the vehicle.

    If you got a large lump sum from SSA because of the length of time it took for your SSDI claim to be approved (and this one often occurs), the funds that are above that limit (generally two to three months of your monthly SSDI payment) could be at risk from a bank levy stemming from a judgment. The exemption for SSA and pension income is not "unlimited".

    While it does not occur very often, you could be called in for a debtor's examination by a judgement creditor. At this proceeding you would have to testify under oath about your income and assets. There could be certain legal sanctions against you if you fail to honor the subpeona that you would receive for this proceeding, if it happens. It probably won't be an experience that you will remember with any fondness, if it actually happens. Whether the judgment creditor will take this step is not something that I can determinbe. The more that you owe, the greater the possibility that it might occur. To a judgment creditor, the costs of conducting this proceeding would be weighed against the likelihood of any meaningful recovery. (It's very much a business decision for an institutional creditor, like an insurance company).

     

     

     

     

     

     

  • Fri, Dec 9 2016 3:07 PM In reply to

    Re: Need help with this

    ClydesMom:
    Here is the problem:  only the equivalent of 2 months worth of social security is safe from a bank levy.  

    That's quite not true. Federal statute protects ALL social security payments from levy. The federal regulation to which you refer is what the bank must protect automatically when a levy is made and the bank can identify SS funds in the account. But the SSA recipient may go to court to object to the levy for the amounts over what the regulation protects; he or she must be able to prove to the court the funds sought to be attached by the levy are SS payments, however.

  • Sat, Dec 10 2016 8:13 AM In reply to

    Re: Need help with this

    Taxagent:

    ClydesMom:
    Here is the problem:  only the equivalent of 2 months worth of social security is safe from a bank levy.  

    That's quite not true. Federal statute protects ALL social security payments from levy. The federal regulation to which you refer is what the bank must protect automatically when a levy is made and the bank can identify SS funds in the account. But the SSA recipient may go to court to object to the levy for the amounts over what the regulation protects; he or she must be able to prove to the court the funds sought to be attached by the levy are SS payments, however.

    In this case how would this negate the LTD insurer's right to subrogation that the OP agreed to with taking the policy?

    The OP has unilaterally decided they deserve the money despite what they legally agreed to.  Can they get away with it?

     

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • Mon, Dec 12 2016 9:35 AM In reply to

    Re: Need help with this

    ClydesMom:
    The OP has unilaterally decided they deserve the money despite what they legally agreed to.  Can they get away with it?

    If the OP has nothing to which a judgment may attach, yes. I understand the moral objection, but if all the assets the OP has are exempt from attachment, there is really nothing the creditor can do.

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