Thread: Defaulted Loans May Haunt Seniors

Defaulted Loans May Haunt Seniors

by Ellen E. Schultz
Monday, March 8, 2010
provided by


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.


defaulted-loans-may-haunt-seniors: Personal Finance News from Yahoo! Finance



Those who are over 55 years of age are so screwed it is not even funny anymore. You lost the equity in your homes, your 401k took a beating, now 15% of all of the money that you put in the ponzi scheme over the last 40 years is going to be withheld from you if you once owed money to the IRS or any other federal agency.

The provision in the 2008 Farm Bill gave the IRS an incentive to go after senior citizens.

No bailout for you.

The Fed is going to send you the bill.

Keep waving the American flag every July 4th, if that makes you feel better.

This is just too funny. The Fed is now outright robbing the American people and the American people have not a clue.

Keep drinking your beer and watch your sports.

Fed Announces Expansion of Reverse Repo Program; Adds Money Market Funds to List of Eligible Counterparties -- Today, the Fed goes one step further, after noting increasing pressure by its own members to commence a tightening policy, and has announced the expansion of its reverse repo program with Primary Dealers, by adding additional counterparties. And guess who the first expansion wave focuses on - why Money Market mutual funds of course. Let's just do all we can to drain the money market system asap, shall we.


Comments:


by MarketTruth
on Mon, 03/08/2010 - 11:22
#257772


Hmmm... money market you say? Aren't these the same things that a recent law was passed so that those with investment in money market can be locked/frozen out of gaining access to their funds. Why yes, yes it is!
AVOID MONEY MARKET FUND AS YOU CAN BE LOCKED OUT.




by Anonymous
on Mon, 03/08/2010 - 12:39
#257892


They want to force that money market $ into the markets, they can't lower interest rates anymore to force it out.
Those in 401K's can't put it in gold or short, their choice will be the market or let the government get their hands on it.