See my research, posts, and articles on disability, including financial assistance, legal rights, and debt relief options. Click the link to explore key insights!
Quick Answer: Despite being over 60, disabled, and living on less than $200 monthly income, Vera Thomas was denied student loan discharge in bankruptcy for her $7,000 debt. The judge ruled she failed the second part of the Brunner test, determining her circumstances weren’t permanently beyond her control.Vera Thomas is more than 60 years old …
Quick Answer: Credit card companies will not automatically write off debt simply because someone receives SSDI benefits. While SSDI income is protected from garnishment, creditors can still pursue collection efforts and lawsuits, and any written-off debt can be pursued again if the debtor obtains other income sources in the future.Question:Dear Steve,I have been disabled for …
Quick Answer: CPP Disability can help provide income replacement but may not cover all living expenses, as shown by one recipient receiving $920 monthly against $978 in bills. AISH (Alberta) can supplement CPP Disability payments up to $1,588 maximum monthly income and provides additional health-related benefits.Question:Dear Steve,I have recently become unable to work due to …
Quick Answer: When sued for credit card debt while disabled, both SSDI and private disability income are generally protected from garnishment in most states. Federal banking regulations automatically protect twice the monthly Social Security amount deposited electronically, so keeping bank balances below that threshold provides additional protection from creditor garnishment.Question:Dear Steve,I am being sued over …
Quick Answer: When cosigning student loans, the cosigner typically remains liable even after bankruptcy unless specific conditions are met, such as proving the school was unaccredited or not Title IV eligible. This parent may have grounds for loan discharge since IADT potentially lacked proper accreditation in 2007, but will need legal representation to challenge Navient’s …
Quick Answer: Navient disability discharge eligibility depends on loan type: federal loans qualify for Total and Permanent Discharge with Social Security disability approval, but private loans rarely offer forgiveness. The inflated balance from $23,000 to $91,000 likely reflects default penalties and accumulated interest on private loans.Question:Dear Steve,I had a part of my student loan $40,000 …
Quick Answer: For someone with income issues causing debt problems, bankruptcy may be more effective than either debt settlement or debt management plans. When income remains unstable after 7+ months of missed payments, discharging debt through consumer bankruptcy allows faster financial recovery than attempting repayment plans.Question:Dear Steve,I was laid off & late in my pregnancy …
Quick Answer: Chase mortgage modification records show common issues including insurance payment failures and delayed processing that can leave homeowners vulnerable to property damage. This case demonstrates how a $200/week worker’s compensation recipient faced home insurance cancellation during modification negotiations, resulting in unrepaired property damage and ongoing financial hardship.Question:Dear Steve,It all started when I got …
Quick Answer: For SSDI recipients struggling with $28,000+ in debt, credit scores matter less than financial survival and bankruptcy may be the best option. Someone on disability income should prioritize getting finances under control rather than protecting credit scores, since credit rebuilds faster after bankruptcy than struggling with unmanageable debt for years.Question:Dear Steve,Lost job in …
Quick Answer: Creditors like Macy’s and PayPal typically won’t settle debts while payments remain current, as settlement options are usually reserved for delinquent accounts. Disabled individuals on permanent disability benefits may be “judgment proof,” meaning they’re protected from garnishments even if sued for defaulting on debts.Question:Dear Steve,I do have Macy’s and PayPal account which I …
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