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Old 09-23-2011, 12:42 AM   #1
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***ssdi back pay and garnishments***

I applied for SSDI in 5/2011. I am still waiting for a decision. I expect to receive about 5 months back pay.

I owe the IRS and Student Loans quite a bit. If I am approved, will my benefits be garnished or offset. If so, by how much, or is my whole back pay?

I have heard some say that by law, IRS and Student Loan can garnish up to 15% each. That would be hard on me with piled up bills.

If they garnish, what is the process for them to do that.

I was wondering if anyone has gone through this and may be able to offer some insight or advise.

Thank you all.

 
Old 09-23-2011, 04:24 AM   #2
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Re: ***ssdi back pay and garnishments***

Quote:
Originally Posted by deme View Post
I applied for SSDI in 5/2011. I am still waiting for a decision. I expect to receive about 5 months back pay.

I owe the IRS and Student Loans quite a bit. If I am approved, will my benefits be garnished or offset. If so, by how much, or is my whole back pay?

I have heard some say that by law, IRS and Student Loan can garnish up to 15% each. That would be hard on me with piled up bills.

If they garnish, what is the process for them to do that.

I was wondering if anyone has gone through this and may be able to offer some insight or advise.

Thank you all.

Hi,

First of all good luck with your upcoming decision.I was recently approved and encountered the same issues.What I can tell you for sure is :

1) Treasury Dept can off-set any Federal liability you have if you are receiving SSDI (as SSI is protected from ANY garnishment). This obviously makes you liable for back taxes(IRS) and student loans

2) Assuming you get approved.you will receive letters from BOTH entities,the Dept of ED and IRS informing you of the exact amount and their intent to off-set your monthly check within a month or so.

3)The IRS can/will take the whole sum,but usually uses a 15% starting point too.For the most part the DOE maxes at %15.This can include your back pay,as well as all future SSDI checks until the debts are satisfied


I would strongly suggest that you contact them both and explore your options.With regard to the DOE....are you in default at this time? You can usually work out a payment plan w/o any off-set,but you MUST address the issue immediately. They claim they give you 60/90 days of time,but they can do whatever they want .

Your other options are to apply for hardship or permanent disability status from the DOE to waive the entire loan if totally disabled(stricter standards than SSDI) or show financial hardship and hopefully get a reasonable payment plan.As far as the IRS ...........they will also work out a payment plan as well depending on the size of the debt,and your own personal financial situation

Unfortunately the 15% deduction from each agency(total 30%) is a tough hit
on your check,but unless you address the situation there is very little you can do to stop it

Whatever you do...DO NOT IGNORE THEM!

GL,
Ferd

 
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Old 09-23-2011, 09:39 PM   #3
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Re: ***ssdi back pay and garnishments***

Thanks a lot. The student loan is in default. I plan to contact them both to see if I can work out a payment arrangement.

Assuming I am not able to work out something, will the IRS take the whole back pay, or will they levy 15% on the back pay first, then 15% on the monthly benefit thereafter?

 
Old 09-24-2011, 04:55 AM   #4
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Re: ***ssdi back pay and garnishments***

Quote:
Originally Posted by deme View Post
Thanks a lot. The student loan is in default. I plan to contact them both to see if I can work out a payment arrangement.

Assuming I am not able to work out something, will the IRS take the whole back pay, or will they levy 15% on the back pay first, then 15% on the monthly benefit thereafter?
It depends on a few factors......how much you owe,the length of time that you owe the debt(that is a big one)....if you have made attempts to pay back the debt PRIOR to getting SSDI.....amongst others

If you speak to them immediately though,your chances of a reduced p/o plan are increased exponentially.But as I stated previously just DON'T IGNORE THEM

IMO you can easily get them BOTH down to 10%(or less) each with some inquiring/due diligence on your part

GL

 
Old 12-22-2011, 12:56 AM   #5
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Re: ***ssdi back pay and garnishments*** UPDATED

Will they send a letter telling me my SSDI benefits will be garnished, and for me to call them to see what I can negotiate to pay them, or will they just take my whole back pay because I owe them more than my back pay?

If I received back pay for 16 months will they garnish my back pay 15% for each of the last 16 months?

Since back pay is a bit sizable, will they insist that I pay them most of it? I can’t, because I have borrowed a lot from relatives to stay afloat until now. Do I have that option, or am I at their mercy? I have to pay my relatives back.

Is payment agreement based upon my monthly benefits or on my whole family’s income? (another SSDI benefit income).

Will they insist on at least 15% EACH?

If an agreement is reached, will they expect me to pay the agreed upon amount from money I can get from elsewhere, or will they take the agreement money from the back pay, and give me the rest, since I have no penny to my name, and cannot borrow any money?
I need info for Student Loans people especially. I know a little about the IRS.

Please Help.
Thanks a lot in advance.

 
Old 12-22-2011, 05:14 AM   #6
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Re: ***ssdi back pay and garnishments*** UPDATED

Yes you def. will receive a letter(most likely from one of the NUMEROUS) debt collectors that the DOE uses on defaulted student loans

Have they sent any letters yet ,or have you tried calling the Dept of ED yet as I recommended a few months ago?


Also.......the DOE as well as any authorized collection agency will have ALL your info regarding the defaulted loans or any agreements you may have with them

GL

Last edited by ferd144; 12-22-2011 at 05:19 AM.

 
Old 12-22-2011, 07:06 AM   #7
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Re: ***ssdi back pay and garnishments***

Quote:
Originally Posted by deme View Post
I applied for SSDI in 5/2011. I am still waiting for a decision. I expect to receive about 5 months back pay.

I owe the IRS and Student Loans quite a bit. If I am approved, will my benefits be garnished or offset. If so, by how much, or is my whole back pay?

I have heard some say that by law, IRS and Student Loan can garnish up to 15% each. That would be hard on me with piled up bills.

If they garnish, what is the process for them to do that.

I was wondering if anyone has gone through this and may be able to offer some insight or advise.

Thank you all.
Shouldnt they be garnished? Kinda hard for me to think that someone would get a sum lump payment and than all of a sudden be a great payee of credit. I would probably just let them take their cut because If people that are worried about "That would be hard on me with piled up bills." You mean," it would be hard on me because I just want the money and not pay anyone." People when will you learn? Your motives are way to crystal clear. sheez. Dont kid yourself. In general not directed to anyone in particular.

 
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Old 12-22-2011, 07:12 AM   #8
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Re: ***ssdi back pay and garnishments***

My brother owes over $100,000 in student loans and his disability is not being garnished- there is a form to fill out and poof- he owes nothing. This pisses me off to no end as I paid MY student loans off and he used his to buy drugs- not get a degree.

I met with a person yesterday who is on disability and was overpaid in food stamps $700- she has to pay that back.

Doesn't make sense.

In answer to your question you will probably not have to pay back your student loans.

Pup

 
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Old 12-22-2011, 07:46 AM   #9
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Re: ***ssdi back pay and garnishments***

Quote:
Originally Posted by pupcake View Post
My brother owes over $100,000 in student loans and his disability is not being garnished- there is a form to fill out and poof- he owes nothing. This pisses me off to no end as I paid MY student loans off and he used his to buy drugs- not get a degree.

I met with a person yesterday who is on disability and was overpaid in food stamps $700- she has to pay that back.

Doesn't make sense.

In answer to your question you will probably not have to pay back your student loans.

Pup
You will have to fill out a detailed application showing disability hardship for 5 YEARS minimum for the loan to be "forgiven" (and they can still check every few years),and need your doctors to sign off on the app.

It inst as easy as you might think,as it seems NO-ONE wants to pay bills anymore,and the Gov is catching on very fast.The factors are MUCH more strict than a standard SSDI application.

GL

 
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Old 12-22-2011, 12:16 PM   #10
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Re: ***ssdi back pay and garnishments***

Quote:
Originally Posted by ferd144 View Post
You will have to fill out a detailed application showing disability hardship for 5 YEARS minimum for the loan to be "forgiven" (and they can still check every few years),and need your doctors to sign off on the app.

It inst as easy as you might think,as it seems NO-ONE wants to pay bills anymore,and the Gov is catching on very fast.The factors are MUCH more strict than a standard SSDI application.

GL
My feeling is that you wanted them you signed a contract why should other people be stuck paying off your loans remember if you are forgiven and don't have to pay the people who gave you that money will just pass it along to other people in the form of new fees or higher interest rates.. These people are in business to make money they will get it one way or another. Sorry but if you are getting ssdi just see if you can pay a small payment every month.

 
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