Social Security Safe from Debt Collectors

Social Security benefits are exempty from the trustee in bankruptcy from levy, garnishment and assignment by creditors.

A creditor who files a lawsuit and obtains a judgment against your cannot take your Social Security payments to fulfill that judgment and they cannot the Social Security money from you after it has been paid to you.

Social Security payments can be witheld by the federal government for taxes, student loans, or child support.

Also, most retirement plans, pensions, and 401(k) plans are also exempt from collection.

While waiting for your social security benefits you may fall behind on your bills.  This means collectors will begin to call.  They should not be able to take your Social Security benefit if it comes in a lump sum. 

Bill Collectors will attempt to manipulate you with guilt and shame to pay them from your social security benefits or to put their debt before paying your fundamental bills needed to survive.

Housing and transportation are typically the most important expense.  Pay these first.

Don’t be intimidated into paying unsecured credit card debt before housing, transportation and taxes.  When all is said and done, credit card collectors don’t have easily available ways to MAKE you pay;  they rely on irritation or fear to GET you to pay voluntarily. Don’t be swayed from your plan to put first things first.

Creditors sometimes threaten to “send you to collections” as though it was a real place, full of horrors. It just means they are handing the problem off to someone else, who has no more real power to take your assets than the speaker does. Don’t be stampeded.

The Fair Debt Collection Practices Act gives you a right to tell collectors not to contact you.

Know your rights about debt collection.

There are some real bad actors out there.

Debt counseling and credit repair are often scams.  Be careful here.  FTC’s tips on credit repair

Denied Application

Why was my application denied?

Most claims are denied because the medical evidence is not sufficient to prove that you are totally disabled. This could be because you are not seeing the proper specialists, because of inadequate medical records, because the doctor does not understand the legal requirements, or because the Social Security Administration’s reviewers misinterpreted the medical records. The SSA rarely denies you have a medical diagnosis, or that you are impaired, but does deny that you proved the legal requirement of being “totally disabled.” It is crucial that your medical proof be as strong as possible.

See:  Social Security Strategy.com

What is involved in the Appeals Process?

If you have received a denial of benefits there is a Social Security Disability appeals process. As with any governmental process, there are certain procedures one must follow. According to the Social Security Administration, if you wish to appeal, you must make your request in writing within 60 days of the date of the denial letter. In most states there are four levels of appeal.

They are:

Reconsideration

Hearing by an Administrative Law Judge

Review by the Appeals Council

Federal Court

Do I need a Lawyer?

Having an Social Security Disability attorney at any stage of the process of filing your claim for Social Security Disability benefits greatly enhances the probability of having a the claim accepted. However, at this stage in the process, time is of the essence because you must file your appeal in writing within 60 days of receiving the denial of benefits letter. In addition one must be prepared to appear in front of an Administrative Law Judge, and to advocate with the Appeals Council, or even a federal court, all with increasing levels of complexity.

The statistics show that far more claims are awarded when the claimants have experienced attorneys representing them, and almost every Administrative Law Judge will tell you that they prefer claimants to be represented.

Most social security attorneys work on contingency fee basis-that means no money up front, no hourly fees. The Social Security Administration must approve attorney’s fees and the fee agreement with SSA in every case. In Social Security Disability cases, attorneys’ fees are regulated and usually capped by federal statute, and attorneys’ fees are paid when you get paid.

Claim Denied – Now What?

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