Posted on: 10th Mar, 2010 03:38 am
Government may soon pass a new law which could result in depleted social security checks for senior citizens and disabled who've defaulted on their home loans or other debts. Earlier, social security payments could not be garnished to recover debts that are delinquent for more than ten years.
However, the 2008 Farm Bill lifted the 10 year statute of limitations on the ability of the government to withhold social security benefits in collecting debts other than student loans and income taxes. Thus, if a person has defaulted on a small-business loan in 1996, and is now receiving social security could be notified that his benefits may be reduced until the debt, with interest, fees, and penalties are paid off. But again, the Treasury can withhold 15% of the benefit. However, the benefit cannot be reduced below $750.
If the new legislation is passed, then it would allow the Treasury's Financial Management Service to collect debts regardless of age. It will increase the collection of $10 million per year in delinquent federal non-tax debt.
I feel that the new legislation is coming at a challenging time for senior citizens as they are already facing the mortgage woes, pension cuts and increased medical costs. Though the new law will apply to debtors of all ages, social security recipients will face most of the brunt.
However, the 2008 Farm Bill lifted the 10 year statute of limitations on the ability of the government to withhold social security benefits in collecting debts other than student loans and income taxes. Thus, if a person has defaulted on a small-business loan in 1996, and is now receiving social security could be notified that his benefits may be reduced until the debt, with interest, fees, and penalties are paid off. But again, the Treasury can withhold 15% of the benefit. However, the benefit cannot be reduced below $750.
If the new legislation is passed, then it would allow the Treasury's Financial Management Service to collect debts regardless of age. It will increase the collection of $10 million per year in delinquent federal non-tax debt.
I feel that the new legislation is coming at a challenging time for senior citizens as they are already facing the mortgage woes, pension cuts and increased medical costs. Though the new law will apply to debtors of all ages, social security recipients will face most of the brunt.
That's horrible. It's like they are asking people to file for bankruptcy because that is the only other way around having to pay those debts off.
Being that I am only 30 I am just planning on there not being any Social Security left by the time I retire. Heck with the way our Govt is spending money SS will be gone all together in the next few years!!!
Being that I am only 30 I am just planning on there not being any Social Security left by the time I retire. Heck with the way our Govt is spending money SS will be gone all together in the next few years!!!
scott, at least you'll have the opportunity over the next 30-40 years to establish your own retirement stash, and if it's managed well enough, you'll be set for your old age.
social security sure doesn't seem like it's going to be around that long based on what's happening now, so you better get prepared i guess.
you better start investing for that boy of yours, too, so that he's not broke before his time.
social security sure doesn't seem like it's going to be around that long based on what's happening now, so you better get prepared i guess.
you better start investing for that boy of yours, too, so that he's not broke before his time.
The social security sector has once again been shaken. Allowing the appeal by the European Commission, the Advocate-General of the EC Court of Justice, Juliane Kokott, recommends cancelling the inscription of several allowances in an annex to Regulation 674/2005 of 13 April 2005 (ruling of 3 May, Case C-299/05). This decision has the practical consequence of renderinga exportable' the benefits concerned: Finnish child care allowances, Swedish invalidity benefits and care allowances for handicapped children, British allowances for the handicapped and for their assistance.
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let's keep in mind that the previous post, by "sirivalli" affects people in Europe and not in the United States. we recognize that this is an international forum, but the vast majority of members, posters, etc. are within the US borders.
hopefully, the information above isn't going to be confusing to many.
hopefully, the information above isn't going to be confusing to many.
I've got to say that while in some ways this sort of equalising legislation can be seen as "fair" in terms of treating everyone the same, it has massive potential to increase poverty amoung a segment of the population which has little ability to increase it's earning capacity. Not a step in the right direction I think.
I just hate to hear young workers complaint about social security not being there when they get older. It's up to them to tell the govt they think it's impt. Otherwise their whining and complaining is, politically, going to result in a lot of elderly and sick people walking around homeless--like the same folks who paid for all their youthful costs and education and still are paying for education for the grandkids. I've already been damaged from getting a retiremend several times since I started saving 30 years ago, it's time for the young ones to stiffen up and stop whining. At least they have a job which isn't true once you get old enough for employers to farm you off to a reduced social security at age 62...it's not that there won't be any social security it's that it will be REDUCED.
Esmeralda, I'm not quite sure who you're talking about, but take a look at what's happening in the current economy. Not everyone has a job these days; I was advised yesterday that over 43 million people are unemployed in America right now. That's quite a few folk to be out of work, looking for a job that doesn't necessarily exist. Forget retirement, they just want to work now.
Yes, it's not nice to think that SS will be reduced; I agree. I don't think you can paint everyone with the same brush, though. Not everyone is whining, after all.
Yes, it's not nice to think that SS will be reduced; I agree. I don't think you can paint everyone with the same brush, though. Not everyone is whining, after all.
It is interesting and much fruitful to know about depleted social security checks for seniors . It is more happiest thig to know that government may soon pass a new law for social security checks for seniors. Thanks for sharing such useful information.
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Social security checks are more useful for seniors. . Thanks for discussing on such interesting topics.
MortgageFit is a fount of interesting topics...keep reading and you'll be edified tremendously.