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CC settlement and SSDI benefits

Date: Fri, 06/25/2010 - 11:15

Submitted by anonymous
on Fri, 06/25/2010 - 11:15

Posts: 202330 Credits: [Donate]

Total Replies: 2


I recently reached debt settlement agreement with a cc (will be made in three payments - thruough borrowed money). The cc CSR told me to check to see if the loan forgiveness will impact my SSDI monthly payments. I have searched online but haven't found anything. Wanted to see if anyone on this forum knows about this or can direct me to research it. I understand I will get a 1099C and will need to include as income on my 2010 taxes, but am now worried that I may lose my SSDI for a whole year because of the loan forgiveness. Is there any form that I can fill out showing SS that it was not actual income, but loan forgiveness.....my SSDI is my only income. Thanks.


By filling out a 1099 ...that is saying that you had income.....I would call SSDI and ask them....that is too bad...definitely check with them. How much are they forgiving? that was nice of the CC CSR to let you know!.....I wish I could help more...any one else know anything about this?


lrhall41

Submitted by on Sat, 06/26/2010 - 10:51

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Earning under a certain amount as pay or a settlement should not effect your SSDI unless it proves that you are not disabled. From what I read they use a percentage of past income formula of some sort! The same as when you applied! If you search the government site it is in there but it takes some real detective work! At the end of the year you will file with the IRS not the Social Security Dept. It would be up to the IRS to spot the red flag and report it! That does not sound like a red flag!


lrhall41

Submitted by Frogpatch on Sat, 06/26/2010 - 12:01

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