For as long as I can remember, the legal field has always fascinated me. While my friends watched sitcoms and cartoons, I chose to watch courtroom dramas and real life trials unfold. There was never really any question as to what I wanted to be when I got older. The only profession for me was that of a trial lawyer. Unfortunately, a serious car accident several years ago changed all that. Now, my injuries prevent me from leaving my home most days. However, my love for the law has never went away. While I may not be able to realize my dreams of becoming a trail lawyer, I still wish to help people with their legal problems. That is why I decided to start this blog. It is my hope that the information contained in these pages will help other accident victims like me when filing their personal injury claims.
When you are approved to receive Social Security disability benefits, there is a possibility other aspects of your finances can be impacted. Whether or not they are depends on several factors, including your state laws. If you are applying for disability, here is what you need to know about benefits and what happens to your other finances.
Do You Still Have to Pay Student Loans?
Once you are approved for disability benefits, there is a good chance your federal student loans will be discharged. In this instance, you could argue that paying the loans would cause a hardship and you are on a limited income. As a result, your responsibility for the loans would be dismissed.
However, you could still be responsible for paying state and private loans. You might be able to reach an agreement with the financial institution from which you obtained the loan to pay back a lower amount of extended the payback period.
It is important to note that if your federal loan is discharged, it can be viewed by the Internal Revenue Service as income. If this happens, you must pay taxes on it.
Will You Lose Your Disability Benefits in a Bankruptcy?
Receiving disability benefits usually does not result in an exemption from your debtors. If you are considering filing for bankruptcy to get relief form your debts, there is a possibility that part of your payments could be taken by the bankruptcy trustee.
Your monthly payments are usually safe from the trustee. There are exemptions in place that prevent the trustee from taking those into account when assessing your income.
However, your lump sum payment could be in jeopardy. If you are unable to prove that funds you currently have are from the lump sum payment, the trustee could seize them. Your attorney can help collect the documentation needed to prove your right to keep your money.
If you currently receive state disability payments, there is a possibility that it could become part of your bankruptcy estate. Whether or not it does depends largely on your state's laws. You might be able to apply an exemption to protect your money if state law does not automatically protect it.
There are many other financial situations that could impact your disability benefits. To determine if you are at risk of losing your benefits or to determine if you can relief from some of your debts once you become eligible for benefits, consult with an experienced Social Security attorney, like those at Waycaster & Allred.Share
14 January 2016