Did you know ... (Social Security F.Y.I.)

MAYS
By MAYS Latest Reply 2010-03-10 09:10:12 -0600
Started 2010-03-10 06:02:15 -0600

Defaulted Loans May Haunt Seniors

( Wall Street Journal .. March 8,2010 )

A little–noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.

Social Security benefits are off–limits to creditors, such as credit–card companies and banks. But the U.S. can collect debts to federal agencies by "offsetting," or withholding Social Security and disability payments.

The Treasury currently withholds benefits of 3.1 million Social Security recipients to recover defaulted student–, farm– and small–business loans, unpaid income taxes, amounts veterans owe for health care, and other debts to the government.

Previously, the U.S. hasn't been able to withhold Social Security payments to recover most debts delinquent for more than ten years.

But a provision in the 2008 Farm Bill lifted the ten–year statute of limitations on the government's ability to withhold Social Security benefits in collecting debts other than student loans—for which the statute of limitations was lifted in 1997—and income taxes, where the limit remains 10 years.

This means that a person who defaulted on a small–business loan in 1995, for example, and who is receiving Social Security could be notified that his benefits may be reduced each month until the debt, with interest, fees, and penalties, is paid. The Treasury can withhold 15% of the benefit, though it can't be reduced to below $750. Tax debts have no floor.

http://finance.yahoo.com/retirement/article/1...


4 replies

rankearl
rankearl 2010-03-10 08:40:46 -0600 Report

yes that is a shame most elderly work all their life have to lose everything they own before just regular social security starts same thing if you get ill i have been demmed totally disabled for various reasons have been denied twice with an attorney next step is a court hearing there is a 2 year wait for a court date in my area this system really needs a over haul im not trying to be negative people need to know reality ((HUGS))julie

rankearl
rankearl 2010-03-10 09:09:59 -0600 Report

opps i said that wrong the elederly if the have to go in to a nursing home they have to losse everything they own or social security wont pay for help oops ((HUGS)) julie

rankearl
rankearl 2010-03-10 09:10:12 -0600 Report

opps i said that wrong the elederly if the have to go in to a nursing home they have to losse everything they own or social security wont pay for help oops ((HUGS)) julie

Harlen
Harlen 2010-03-10 06:39:21 -0600 Report

Thats the goverment working for you.
Always looking out of the ones that have the least.Forget the ones that owe big bucks they may be the next boss lol

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