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Understand complex Social Security Disability appeals

Social Security Disability income is the only way that some disabled individuals can support themselves. Filing for the benefits doesn't mean that you will automatically get it, however. Instead, there is a good chance that you will receive a denial of benefits the first time that you apply.

This means that it is important to understand your right to appeal if your claim isn't approved.

Extending the automatic stay

Bankruptcy affects entities large and small. While individuals filing for bankruptcy is far more common, major cities around the state of Illinois have had to cut essential services to pay for pensions and other vital services. 

Individuals filing for bankruptcy have various protections when the court approves the motion. Debtors have the power of the automatic stay once they file for bankruptcy, which automatically halts all debt collection proceedings. This includes all lawsuits filed by the creditor. It provides the debtor with some breathing room to get his or her financial affairs in order. However, there may be situations where you need to file for an extension on the automatic stay, so it lasts longer. 

Chapter 13 bankruptcy has debt limits

Some people know a Chapter 13 as the "wage-earner's bankruptcy." This is because it is reserved for individuals who can afford to make regular payments to the bankruptcy trustee. The money goes toward paying off creditors, and the payments continue for three to five years.

A person's income determines the length of the repayment plan. If a person's monthly income is less than the state median, they will repay over three years. If it is greater, the plan lasts five years. While there are some exceptions to these, no bankruptcy repayment plan can last longer than five years.

Social Security programs for disability vary some

The Social Security Administration (SSA) has two programs that help people with disabilities to make ends meet. These are the Social Security Disability Insurance (SSDI) program and the Supplemental Security Income (SSD) program. While they serve similar purposes, these are two very different programs.

Both programs require you to have a disability that is likely to last at least a year. You will have to show that you meet this requirement and that you are unable to earn a living wage because of the disability. This is where you will have to find out which program you are eligible for.

Take control of your finances with bankruptcy

The thought of having to file for bankruptcy doesn't set well with some adults because they take pride in paying their bills. The thing to remember is that bankruptcy is a tool that enables you to take control of your finances when circumstances spiral out of control. This is typically a better idea than having to string creditors along with promises of payments that might not come or that might be less than you promised.

It is imperative that you think about how the bankruptcy will impact your life. Bankruptcy can be a great stress reducer.  One of the most immediate things you will notice is that creditors won't contact you any longer. When you file, the court issues an automatic stay, which means that they can't try to collect on the debt. They can't call or message you. They can't send any form of communication, including written letters or emails.

Know how a Chapter 7 bankruptcy will impact you

Most people hope they never have to experience filing for bankruptcy. In the past, there was a stigma associated with filing for bankruptcy protection. Now that the stigma is largely gone, many people don't dread it quite as much.

Consumers generally file either Chapter 7 or Chapter 13.  One is not better than the other.  Everyone's circumstances are different.  That is why it is important to schedule a free, initial consultation so we can get your complete financial background and determine which type of bankruptcy is best for you.

How a divorce may affect your SSDI benefits

For most Americans, work is a part of everyday life. After all, you have bills to pay and, possibly, a family to support. Still, if you sustain a serious injury or develop a chronic condition, you may be unable to find a job you can perform. Social Security Disability Insurance benefits provide a meaningful safety net. 

To qualify for payments under the SSDI system, you must have acquired a certain number of work credits. You also must have a qualifying disability. After going through the application and possible appeals process, you may plan on receiving a specific amount of money every month, perhaps indefinitely. Some life events, though, may affect your SSDI payments. Divorce is one of these events. 

Finances are greatly impacted by a disability

Many workers in this country count on the income from their job to make ends meet. They don't ever think about what would happen if they were suddenly unable to work. For a person who is disabled in an accident, not having money to cover certain things can lead to disaster.

Some people don't realize that disability payments aren't automatic. It takes time to go through the process of getting these benefits. This is the reason why people recommend having an emergency fund built up while you are still able to work.

Considerations for living on a bankruptcy budget

People who file for Chapter 13 bankruptcy will have to watch their spending throughout the course of the bankruptcy. This is because you will have to make payments to the bankruptcy court in an effort to pay off your debts. There won't be much money left once this is done, so you will need to determine what you can do to cut expenses.

One thing that you will have to do at the start of the case is to write out a budget. Know where your money is going so that you can determine where you need to cut expenses. There are some smaller things that might help you out here. You can eat out less or cut back on online shopping habits. Take steps to save on your electric bill and cancel cable. Stop going out so often until you are back on your feet after your case is closed.

Yes, some disability checks can be garnished

Suffering a disabling injury at work can start a chain of events that is difficult to overcome. It can be difficult for loved ones to deal with the change in your abilities, and this might lead to your marriage ending. This is an unfortunate occurrence that means you are going to have to do a lot of planning.

One of the most pressing issues is that you will have to determine how you can make ends meet with only your disability payments. This can be a challenge because you have to think about the divorce costs, as well as standard costs of living. Even in the best of circumstances, divorce can damage your financial stability, but it is often magnified if you are on disability.