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.
A perspective in Health Care Reform: What do you want??!!!
Let’s start with this link:
http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.3200.IH:
For those of you out there SCREAMING at some of these town hall meetings and getting pissed that this new proposed “Health Care Reform” is garbage, here’s the link above to the “America’s Affordable Health Choices Act of 2009 (Introduced in House)” so that you can AT LEAST sound like you know what the hell you’re talking about before you start going off!
Now, before you go any further, let me be the first to tell you, I HAVEN’T read the act. I have a slightly different few on Health Care Reform. You’ll be able to get an idea of my thoughts as you go through this post.
Let’s get one thing straight. The notion of “Health Care Reform” or “Universal Health Care” really has NOTHING to do with the quality of care. What it REALLY bowls done to is CAPITALISM! Our country is a Capitalistic regime. Do you know what that means? That means we are a “YOU gotta get YOURS” society!
Now, don’t get me wrong. I love our country and I love what we stand for and I love our system. I wouldn’t change it for the world. However, whenever I hear people scream about Health Care, I stop and I get annoyed.
Here’s why I got so mad:
1) Are you REALLY paying for your health care? So many people are out there screaming and hollaring about how they don’t want to pay for someone else’s healthcare. The simple fact of the matter is, YOU probably aren’t paying for yours either. If you’re working for an employer, the BULK of your health insurance is being paid by the employer. You’re not shooting $500 to $600 in health insurance. The employer is. So how can you really complain?
2) Don’t you realize that we have a system of Universal health care ALREADY! Universal health care is health care coverage for all eligible residents of a political region and often covers medical, dental and mental health care. http://en.wikipedia.org/wiki/Universal_health_care These programs vary in their structure and funding mechanisms. Typically, costs are born, at least in part, by the government. http://en.wikipedia.org/wiki/Universal_health_care. What’s fascinating is that we already have these systems in place. Think about it. Do you complain when have to pay for the treatment for Veterans through the VA system? (UNIVERSAL) How about treatment for our elderly through Medicare? (UNIVERSAL) What about disabled children through Medicaid? (UNIVERSAL). So why are we walking around like we don’t want these systems in place and we use them already??
3) What are you going to do if your Health care disappears? Here’s where I really get fired up. In my years practicing Social Security Disability, I have represented thousands of clients who have found themselves working one day and having insurance TO disabled the next day with no insurance. I have watched people GUT their savings, 401k, investments, loans, and banking accounts to survive while they wait. What’s wild is that some of these SAME people who were ANTI-universal health care one day are NOW in the same position of those who could benefit from this type of health care.
4) If you don’t have health care, you better VOTE or the people who do have health care will decide for you. When I see all of these people on the TV SCREAMING against universal health care or health care reform, I am FAIRLY confident that they go to the polls to vote. I am HOPING that the people who really NEED health care reform go to the polls as well so they can make sure their voice is heard.
Here’s the thing that really trips me out. In the grander scheme of things, our health care system is capitalistically driven. You don’t want to hear that but let’s face it, the inherent ability of any system to function is predicated on financial fluidity. It’s that whole ‘you get what you pay for’ mentality. It’s sad but it’s true. Now, I’m not making those in the health care field as money hungry monguls. It’s just an inherent fallacy in a broken system. With that in mind, you have Three fundamental realities:
1) The current system is broke. You can’t fix it so you better accept it. At some point, you have to accept it and move on. IT is the system we have and there is nothing you can do about it.
2) The current system is broke but if you don’t have a suggestion to fix it, SHUT UP! I’m not supporting or against health care reform. I am pro-fix. If someone can give me a model that will provide access to health care to everyone, I’m up for it. However, don’t be one of those people who are QUICK to rip apart a suggestion but don’t have ANY thoughtful suggestions to correct the problem.
3) Universal v. Private. Either you take it or you don’t (which goes back to #1 or #2) The whole nature of universal health care is this underlying premise that we are paying for someone else’s health care. When you bust your butt to work and some of your check goes to pay your health care and someone else’s health care, you may have a problem. However, if you are living check to check, you may find yourself ONE day in a position where you can’t work or laid off and NOW you have to rely on someone to pay YOUR health care. So what do you do then??
Health care is a BEAST like no other. I am not going to sit here and say it’s easy to fix. What I am saying is that we need to focus on 2 very simple thought processes. If you don’t like our current system, SUGGEST something better! If you want to see a change, you are going to have to accept some things you DON’T LIKE!
Take your pick and roll with it!
Some forceful focuses to help you fist fight your foreclosure
Let me be the first to tell you that there is NOTHING sexy about Foreclosure. And I’m sure that there are HUNDREDS of websites out there that will give you a million and one tips to fight off the foreclosure monster.
Well, allow me the opportunity to provide you with tip number 1 million and TWO:
1) Detail who you discuss things! When things get crucial, you will probably get a lot of correspondence from the lender regarding the property. Keep these letters for your benefits. Also, write down the name, title and phone number of any representative that you spoke to regarding your case.
2) Your MORTGAGE is MORE than just a piece of paper! Your mortgage typically outlines what things have to happen before you get foreclosed. In some instances, the mortgage documents will outline specific provisions the lender can provide to you. Pay attention to whether these things have happened.
3) TAKE it to the BANK! In some instances, lenders will tell you (maybe not in writing, which is why you need to document who you are talking to when you speak to the lender) that you don’t need to pay anymore because you are in foreclosure. As a result, you have a surplus of money. DON’T SPEND IT!! Put that money in a savings account or trust account (if you have a lawyer) so that you have those funds if you need renegotiate or refinance your mortgage.
4) You gotta SHOW them the money. You have to be able to demonstrate how you’re getting money. This means, you need to have your pay stubs, tax records, and any other documents to demonstrate your financial means.
5) Recognize your position. People, foreclosure usually means the DOGS are at the DOOR! In other words, your ability to financially maintain the household has some how changed and prevents you from being able to continue to do so. The reality is that you have to ask yourself “CAN you afford to pay for the place you are living?”
6) Understand their position but don’t push it. No matter how much you want to say that the property you live is not worth the aggravation to the lender to get it back, it is STILL their property to pursue. Lenders are smart. They know what they are dealing with and it’s smart to not assume that they are just going to ‘ROLL’ and let you stay in the property ‘just because’ they can’t sell it.
7) Always FIGHT! If you REALLY want to keep your home, do your homework, contact an attorney, reach out to the lender, keep your documents, and DON’T GO QUIETLY!
Alot of times when the foreclosure monster comes calling, we don’t always know what to do in order to properly fight the proceedings. Be prepared to take the steps to keep your home and hold on to it as long as you can.
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.
