A Story About A Social Security Disability Claimant: An American Tragedy
In 2008, a 27-year-old man (let’s call him John) was enjoying his work as a Supervisor, making about $4,000 a month. Life was good and his opportunities were endless. He was working for a company with great benefits and was enjoying the American dream. He had a beautiful stay-at-home wife, two lovely kids, a nice car, and a lovely home. He’d been smart, saved his money and made some good investments. By all accounts, he was a success.
But, in the fall of 2008, his life took on a turn. He woke up one day and had difficulty talking. He was numb on one side of his body and he struggled to walk. He didn’t know what was wrong. His wife rushed him to the hospital. Doctors kept him overnight and determined he’d had a stroke.
John spent a month in the hospital before regaining his ability to speak. During that time, he used his sick time and Family Medical Leave . When he got out of the hospital, he still dragged his left foot, experienced memory loss, and loss of some muscle coordination. Two months went by and he was still having problems. He used up the rest of his vacation time and decided to quit his job because he wasn’t sure when he would be healthy enough to return. Unfortunately, he didn’t have short term or long term disability so he was out of insurance. In order to take care of the family, and support the house, his wife had to go to work. Eventually she found a job, but couldn’t afford to put John and the kids on her insurance so she insured the kids.
Unable to find a free clinic or any providers who would take him on a low cost basis, John had to take money out of the savings and investments to start paying for private insurance and treatment. After about 7 months, he tried to go back to work and found a job as a toll collector. But he continued to have memory problems so his cash register is always off. He was let go after working only three weeks. To make matters worse, he suffered a relapse and had to go back into the hospital for a couple of weeks. When he got out, he had an expensive hospital bill to pay but no ability to pay it. By this point, 10 months have gone by and John has no insurance, no savings, and no investments. So he decides to apply for Social Security benefits.
Unfortunately, it’s a long process. It takes five months from before he gets a denial. In that time, his wife has begun working two jobs because they can’t afford the mortgage and car note . They lose the house in foreclosure and have to move in with her parents. John appeals the denial, waits another six months and is denied again l. In that time, the family’s car is repossessed. He appeals to go before a judge and now is told that he has to wait another 12 months. Twelve months of no insurance, no health care provider, no car, and no home. John’s wife struggles to pay for the few visits that he can attend at a local doctor. It’s not much but it’s something. Twelve months later, he has a hearing. After the hearing, he has to wait three to four months for a decision. Finally, he gets the good word he’s been waiting for: a fully favorable decision. He’s been approved. Now, he’ll have insurance coverage. Now, he’ll have some money.
However, to his surprise, he only gets $1200 a month. He gets a lump sum going back two years in the amount of $24,000 but John has so many bills and debt that the money is gone in less than a month. Now, the question is: How do you start back over? The money is not enough to put them in the position as they were in before. So what do they do?
This story may sound like fiction but it is not. There are thousands of Johns-and Janes-who go through this every day while trying to put their lives back together after something devastating has happened. It’s a tragedy and unfortunately, it’s an American tragedy. So what do we do to fix it?
Can somebody explain how I get paid after I get a favorable decision?
So you got approved for Disability benefits. YAAAAAAY!! Congratulations. After stressing, waiting, and going through this lengthy process, you are finally going to get your disability benefits. Even better, you are so happy with your representative who was successful in helping you get your benefits.
However, now comes the confusing part. What happens next? When are you getting paid? Who pays your attorney? When should you expect the money? Now, it seems that you have more questions than you do answers.
Well, here’s a few things to help you out:
1) About 60 to 90 days before you get paid.
There is no hard rule on how fast it takes you to get paid. IN most instances, it takes about 60 to 90 days to process your pay.
2) Why does it take so long?
Even though it may not seem like it, it takes longer to calculate your disability benefits than it it is to get disability. Think I’m joking? Here’s how it works. First, they have to figure out which programs you qualify. Second, they have to determine if there are any programs that offset the benefits. Third, they have to determine if there is any retroactive benefits. Fourth, they have to determine if there is any benefits going forward. Fifth, they have to calculate any representative fees and ensure they get paid. Sixth, they have to determine if there is a need for a representative payee. Finally, they have to deal with any other issues that pop up. Interestingly enough, this process may take place at two different Social Security offices that must talk to each other. See how this may take a while.
3) How does my representative get paid and WHEN does my representative get paid?
This question is one that I get alot. In terms of “HOW”, Social Security is responsible for calculating the back pay. From that back pay, Social Security will withhold 25% towards attorney fees. For example, lets say that your back pay is $10,000. 25% of $10,000 is $2500 which means your attorney will receive $2500 and you will receive the remaining $7500. Now, the WHEN part is trickier. The reason it’s trickier is because Social Security will sometimes release the check to the attorney first (Usually because this part is the easiest to calculate) and then send the rest to the claimant.
4) Why am I getting all of this Paper from Social Security?
Over the next few months, you will received “Important Notices” and “Award Notices”. These papers are crucial because they explain IN DETAIL everything you’re entitled to receive as well as a discussion of how your representative gets paid, any offsets, and future benefits.
5) Why did I get a Medicare card in the mail? Do I have to keep Medicare?
If you qualify for Disability Insurance Benefits (this is different from SSI), then after receiving 24 months of benefits, you are entitled to Medicare. So if your back pay takes you back to October 2007, you will receive a benefits starting October 2009. Now, here’s the tricky part. You have to pay for Medicare and they take it DIRECTLY out of your monthly Disability Insurance Benefits check. If you DON’T want it, just remember that there is a penalty if you decide to come back later (Contact Medicare, they can help you on this one).
6) Should I call Social Security’s 1-800 number or the local office if my money is late?
I always tell people that they can call who they want to but recognize this point. The Toll free number for Social Security is NOT designed to answer all of your questions once you’re paid. Once you get paid, a different office takes over (so the 1-800 will probably not be helpful). The local office can help if you are entitled to receive SSI but your DIB check may be processed in Alabama, Maryland, or New York.
7) I’m fighting foreclosure and an eviction. Will that help?
If you have documentation that you are about to be evicted or foreclosed or your health has turned terminal (i.e. you may be dying), give evidence of this information to Social Security as soon as possible. This information may assist them in speeding up your case.
Congratulations on your case. I know it’s a long time coming but you deserved it. So just be patient a little while longer and it should all work out for you.
Don’t get mad, Jessica Simpson, you may have dodged a bullet: Co-mingling lifestyles and the legal perils
Right about now, I know that Jessica Simpson is probably sitting over in the corner ’salty as hell’. And don’t sleep, I FEEL her pain. How many of us have been in a relationship with someone who did something ‘COMPLETELY STANK’ at the wrong time? Now, I’m not casting judgment on Tony Romo because I don’t know what he did or did not do. However, I fully understand how it feels when you are put in that funky fly situation and it feels like you are picking your face up off the ground.
Unfortunately, the reincarnation of Ms. “Daisy Dukes” herself is not the first person to go through a painful breakful in a very FOUL way. We spend alot of time looking at the devastating and financially crushing divorces of married couples. However, we don’t stop for a second and look at how crucial ‘breaking up’ with a boyfriend or girlfriend may be from a legal perspective:
1) The LEASE is LETHAL, part 1: Residence. You’ve met that special person and now, you have decided to move in together. Well, let me tell you something wild. When their name is on the lease, unless there is a court order instructing them NOT to be in the residence, they have JUST as much legal right to be there as you. So keep THAT in mind, when you decide to flex and lock someone out of the apartment or home to prove a point OR if you decide to tell them they have to stay somewhere else.
2) The LEASE is LETHAL, part 2: Credit & Finances. Now, if you KNOW you can’t afford a place by yourself, why would you SWELL Up, put someone OUT of the place, and then EXPECT them to keep paying their portion of the rent???? You feel me on that logic? In the grand scheme of things, when you co-sign on a lease (or a mortgage), you BOTH are on the hook to make sure that thing gets paid. So if one person refuses to pay, guess who has to take up the slack.
3) The LEASE is LETHAL, part 3: Eviction. Ok, so you both decide to get stank and neither of you are going to pay. So you get evicted! You’re cool with that?? Good. Recognize, in some states, that eviction will remain on your credit for about 7 years (that’s right, SEVEN YEARS) and don’t nobody wanna hear about how your man tipped out with that trifling female or how you caught your girl with your boy! blah! blah! blah! The only thing that matters is that for whatever reason, you stopped paying the rent.
4) You may not be able to put them out! OH, so you think that if you avoid putting the person on the lease or mortgage then you should be fine? Again, check your laws in your state. In some instances, if a person can establish that they have been residing in the residence for a period of time, you may not be able to evict them (either forcible or legally) unless their is some allegation of abuse or other criminal activity.
5) JOINT accounts may get with you. Live by the joint credit accounts / die by the joint credit accounts. So you want to put your money together? That’s cute. You get a few joint credit cards. You have a few joint bank accounts. Then, all of sudden, BAM! The relationship goes sour and then what happens. One person runs up the credit card while the other is stuck with the bills. One person cleans out the joint account. All in one fell swoop, everything is lovely and then, NOT!
6) What is your property rights in a home you both bought together? Check the laws of your states as it relates to your property rights if you and your significant other decide to buy a home. Most marriages fall under the legal concept of either “Joint Tenants with Rights of Survivorship”. However, some persons can obtain a “Tenants by Entirety”. Joint Tenants with Rights of Survivorship basically means that both the husband and wife share equal property rights as one and if one dies, the surviving spouse receives the deceased property rights in the home. Tenants by Entirety pretty much has the same effect where both tenants are viewed as one and when one passes, the surviving tenant receives the deceased property rights in the home. However, when purchasing a home, you may have a “Tenants in Common” property right. Each party has a 1/2 interest (if there are two tenants or 1/3 if there are 3, etc.) in the property. So what do you think will happen if someone moves out and the remaining person sells the home, that other person is going to want their half.
7) Personal Property, their’s, mine, or ours?? Oh yea, this part is where it REALLY gets stank! You’ve bought things for each other. it’s been lovely. Now, you are trying to decide to what is yours and what is mine and who is titled to what. Never cute.
The simple breakup (if there is such a thing) is where both party walks away and still remain friends with no messy legal consequences. However, when you factor in the number of couples who co-habitate and mix / mingle funds and assets, you can quickly see how some couples’ situation can be just as messy as divorce.
Protect yourself when you are renting a home
Right now, the market seems pretty good for buying a home or even renting a home. However, you gotta be careful because in this day and age, you may yourself in a “FUNKY FLY” position.
Here’s a few things that you need to keep in mind if you’re thinking about renting a home:
1) A RENTAL home is NOT your dream home. Sometimes, when people are looking for a rental home, they find a piece of property that is so great that they forget that it is still a RENTAL HOME! In other words, don’t abandon your common sense and take the first home you find just because it looks good. Make sure you conduct yourself as if you’re going to rent an apartment.
2) WHO owns the home?? There is a new craze of fraud going on around here and it is NOT sexy! Imagine paying rent to someone and finding out later that they didn’t own the home. Now, you are in a JAMMING situation because you may not have any legal recourse against the TRUE home owner and the FALSE home owner may be no where to be found. So how you can find out before you get your feelings hurt? One suggestion is to contact the county’s property appraiser’s office or county tax collector’s office. If you have the addresess for the location, they can tell you who owns it. This way, if you don’t like what you hear, you can run.
3) Consider a realty company. Anytime, you risk renting DIRECTLY from the homeowner, you risk the possibility of things getting funky. Alot of homeowners utilize 3d party realtors to act as an intermediary. You would be surprised at how easy life may be when dealing with a company that handles properties.
Now, you’ve rented your place. Everything is EVERYTHING and you are rolling. You have a wife or a husband and some kids. You pay your rent on time and you got great credit. All of sudden, you get a note on your door from the County Sheriff telling you that you 72 hours to get the hell out! SAY WHAT?????!!!!
I hope it is not this drastic but recognize that it can funky, quick fast and in a hurry.
However, here’s how it may play out. For whatever reason, your landlord is in financial disarray and all of sudden, the landlord is in foreclosure. It’s not sexy but here’s some things you need to consider:
1) Check your lease. The moment you get wind that the property you are staying in is now in foreclosure, check your lease to determine if this constitutes a breach of contract. Remember, your lease is the contract between you and the landlord that says that YOU have certain requirements and the landlord has certain requirements. If you’re not sure, contact an attorney in your area.
2) Speak to your landlord. Reach out to your landlord to determine what’s going on. Let’s be real. Depending on your landlord, they may not be TOTALLY truthful with you but you at least have an idea of what’s going on.
3) Do you have TENANT’s right? Every state is a little different so check the laws of your state to determine if you have any rights as they relate to what you can do in this situation.
4) File a notice as an interested party. If you can find out more information about the court proceedings, you may be able to file a notice as an interested 3d party. This way, you may receive some notification regarding the proceedings so this way you will know what’s going on.
5) To sue or not to sue? This question REALLY requires a heart to heart discussion with your significant other with some potential guidance from a lawyer. The simple fact is, you may have a cause of action to sue the landlord for their breach in order to get your deposit and first and last month’s rent. However, the landlord is in foreclosure so they may not have very much assets to get anyway.
6) Be prepared to move! I’m not encouraging people to take off as soon as you get the word that your rental property is in foreclosure. However, remember, the new owner (if there is one) may not necessarily owe you any obligations regarding continuing your lease so you should be prepared.
7) If you get the note on your door, get READY! If for some reason you find yourslef in a position where you get the 72 hour or 48 hour notice, you gotta move RIGHT THEN!! However, if you need more time, look at the notice to see who is the filing party because you may be able to contact them in order to buy more time if you were completely caught off guard.
These times are tough and they get tougher if you find yourself in a really tough situation due to the financial hardship of someone else. In other words, the last thing you want is a situation where you are forced to have to leave your home because someone hasn’t be paying their bills. However, be smart and be proactive the moment you realize that your rental property may be in jeopardy.
MOVE fast when you find out your rental property is being foreclosed
Here’s the NIGHTMARE you don’t want to face. You’re renting a house. You pay your rent on time. However, little do you know, your landlord is NOT paying the mortgage. The next thing you know, you get a notice (whether it be in the mail, the newspaper or the landlord themselves) that the property you have been renting is in the process of being foreclosed.
Unfortunately, the worse part of this nightmare is facing the reality that you probably are NO WHERE NEAR prepared for this type of traumatic life experience. You don’t sign a lease expecting to be told at some undisclosed period of time that you would have to leave on a dime!!
If you find yourself in this situation, you don’t have time to mess around and wallow. Here’s a few tips to get right:
1) Get ready to move NOW
Don’t freak out and ask yourself what you’re going to do. Start DOING!!!! Start figuring out RIGHT THERE and THEN where you have to go! As soon as you get notice that the house may be in jeopardy, START hustling from that point.
2) Find out where the case is in the legal process (and see where you stand)
Most people forget that foreclosure is a legal process. In some states, you may have the ability to intervene as a third party in the event that you need time to move. If you get the word that foreclosure is going down, contact you an attorney or find out at what stage the case is currently.
3) Contact the new (or potential) owner
Sometimes, the new owner may or may not know that you are in the property as a tenant. Don’t wait until the new owner executes a writ of possession (i.e. eviction notice) for you to contact. The new owner may or may not want you to be the tenant but you want to let them know that you may need time.
4) Pay rent on time (it helps) and let them know about your family
Remember, when you’re talking to the old or new owner, your bargaining ability may be strengthened based on the size of your family as well as the fact that you have paid your rent on time.
5) Recognize, if you KNEW that foreclosure was coming and you didn’t do anything, you may be stuck when they tell you to get out NOW!!
If you know that that beast is coming, don’t move slow. Act on it quickly because if you drag your ass, that’s exactly what you’ll be sitting on OUTSIDE of the house when they evict you.
6) When that eviction notice comes, it may be too late
Listen, you come home, you see a 48 hour notice on your door. You freak out but you need to understand one thing, you may not be able to do anything about it. You can file an emergency motion with the court but the court may not be able to get to it before the eviction is enforced. You may not be able to contact the new owner.
7) Keep a copy of the lease handy and explore your options
Don’t throw your lease away. You may have the ability to exercise legal options (especially if you are still paying the landlord and you didn’t know that the property had already been sold).
There is NOTHING sexy about having to leave a home that you have been paying rent on faithful. However, in this tough economy, you must understand that you may have to move on a DIME in a very unpleasant situation.
