Disability, Bankruptcy & ALLSUP

Discussion in 'Fibromyalgia Main Forum' started by meditationlotus, Aug 7, 2009.

  1. meditationlotus

    meditationlotus New Member

    Well, I called ALLSUP and was told that since I am in the middle of Bankruptcy and it hasn't been discharged, they cannot represent me. They said that in the past, the judge would not approve their fees if their clients were in the middle of a bankruptcy case.

    This doesn't make any sense. How can a person expect to win a disability case if they can't get any legal representation? This is terrible!!!
  2. meditationlotus

    meditationlotus New Member

    Has anyone heard of such a thing? They were implying that the trustee could garnish the portion of the backpay that is supposed to go to the disability attorney/advocate, That's crazy! People can need legal help for more than one thing at the same time.

    I've been doing some research on the internet about this and it says that creditors cannot come after backpay unless you give your backpay to someone. Only the federal govt can come after your backpay for child care of student loans.

    Does that mean that if I give the money to the attorney/advocate (this is not a gift, but the only legal way that they can be paid) then the creditors can come after it? This is crazy.

    Anyone done both at the same time? Encounter any problems like this?

    Thanks[This Message was Edited on 08/07/2009]
  3. AuntTammie

    AuntTammie New Member

    I am not sure about doing both at the same time. It doesn't sound like it would be a problem, but I really don't know.....however, I do know that it IS entirely possible to go through a disability application w/o legal representation and to win (and in that case, to keep all the money, instead of having to give it to the lawyers).

    How much longer is your bankruptcy supposed to take? If it is not that long, I would probably just wait to be on the safe side, but if it is a long time, it would not hurt to contact your local social security office (where you would go to apply) and ask them about it....and while you are at it, ask them what kinds of documentation you need in order to start the disability application. You could always start to gather that stuff regardless of when you decide to apply, and it might even save some stress, bc once you start the process, they want all sorts of stuff and they don't give a lot of time to get it. If you already have it together, that will help.
  4. Debra49659

    Debra49659 New Member

    if you can't pay all your creditors you can't pay any. This is what out bankruptcy attorney took us when we filed a few years ago.

    I agree the the poster (sorry brilliant poster) that suggested you can start gathering your documents together now and file after your bankruptcy is discharged.

    Or you could file on your own, and if your initial claim is denied, Allsup or an attorney could pick up from there. There is no fee to file. SS even pays for all your medical records but there is A LOT of paperwork to fill out.

  5. gentle-blonde

    gentle-blonde New Member

    It really is hard to get your own money that has been paid into S.S. It took me 2 tries on my own and was turned down. So, I hired a lawyer which of course cost me $5300.00. This money was taken out of the back pay lump sum. The Medical Examiner of the S.S. Office looked at my file; she could not figure out why I even had to go through the process so many times. She stated to the Judge, "She has so many medical problems; that there is no way we can diagnose her main problem. And, with all the medications she is taking, there is no way she could hold down a job." The Judge himself was also upset that I had to wait so long. I really feel that this is just a racket for the lawyers to get rich quick. I was only in front of the Judge 10 minutes. Yes, my S.S. went through. I too went through a Bankruptcy; but was told I had to wait a year before applying for Disability. All in all, it took me 4 years to get my Disability. Let us pray that they don't try to take it away from us which is rightfully ours.
    [This Message was Edited on 08/07/2009]
  6. meditationlotus

    meditationlotus New Member

    I had thought that I may as well try to do it in the beginning on my own, but I am wondering about the legalities. From what I have read on the internet, disability payments are supposed to be off-limits to creditors during a backuptcy. Only the Federal government has the right to garnish these for child-support payments or student loan payments. So, is Allsup doing something illegal saying that the trustee could come after their portion of your packpay?

    And if it is legal, why would a person be denied their right to legal representation for a disability case in the final stages when you go before the judge. I may have another three years on this backruptcy, and by then, I may be past the time that I can file for SSDI.

    Either way, this reeks of discrimnation. I am backrupt because of lack of health insurance.

    [This Message was Edited on 08/08/2009]
  7. steach

    steach Member

    I have defaulted on a student loan. Itis my understanding, unless the laws have changed, they can "write-it-off" unless you go on a total disability. It is best to contact them for clarification.

  8. nink

    nink New Member

    You raised a good point about disability benefits being untouchable in terms of bankruptcy. They cannot be garnisheed to satisfy your debts. But that pertains to benefits you are already receiving, not to the costs involved in applying for disability benefits.

  9. Andrew111

    Andrew111 Member

    I don't know if it's level or not. But why not call Binder and Binder and see what they say.
  10. jasminetee

    jasminetee Member

    You don't need ALLSUP in my opinion. They don't tell their clients to keep a detailed journal of their symptoms and they don't tell them to get out and find mainstream MDs who are willing to write letters stating you are disabled. Those two things are so important in winning a disability case. I can't believe how negligent ALLSUP is in "helping" people get approved for Disability. In my mind, they've done you a great favor.

    To get to the excellent articles that detail How To Win Your Disability Case here at Prohealth, hit the Home Button at the top of the page then in Search select Articles and write in "Disability". I suggest reading from the top to the bottom. Here's what I wrote about this a few months ago:

    If you're filing for SSD or SSI or an LTD you don't have to have a lawyer. Most articles tell you you do after you've been denied once but that isn't true. If you look at the source of the site it's always by a lawyer or law firm that are saying that. Many of the good Disability articles here at Prohealth are written by lawyers. They're full of excellent info that should be followed but I don't agree with them that you need a lawyer at all during any part of the process.

    Here's what I was reading just now in one of the comments under one of those articles:

    "you do not have to hire a lawyer. A lawyer does you no good at all. All the lawyer does is send his secretary around to all your doctors and test facilities and get the copies that you [could] have gotten in the first place and then if you win, which you should, they get 25% of your back pay off the top. For doing nothing but what you [could] have done in the first place."


    One other thing I've read a few times is that if you get denied don't Refile or you go back to the bottom of the pile. Appeal instead.

    There is excellent advice in these articles and comments and following it should help you. I got mine without a lawyer. I did however, pay for an hour consultation with a lawyer who basically stated the above to me. She was an above the board lawyer. :) That was back before the Web had this much good info on filing.

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