Social Security $$

[chucksherm]

I am working full time. I am also old enough to begin to receive Social Security benefits. After my birthday in July, I could collect about $900 in addition to my income from my job. You already know what I'm going to ask.
Will the 13 plan gobble it up? I've emailed my attorney but the response here is much faster.
Thanks, Chuck

[lrprn]

I am working full time. I am also old enough to begin to receive Social Security benefits. After my birthday in July, I could collect about $900 in addition to my income from my job. You already know what I'm going to ask. Will the 13 plan gobble it up?

It's impossible to say with certainty what will happen - each Ch 13 trustee decides when 'enough' extra income is added on to request a plan amendment to take the extra income or to leave well enough alone.

However I can say that if similar income increase experiences discussed here over the last several years are any indication, changes are pretty good you will get to keep the extra. Most Ch 13 trustees are content to leave well enough alone if your plan is confirmed and your payments have been consistently on time.

Your responsibility? To inform your lawyer about the $900 and decide together when/how to tell your trustee about it.

[woeisme]

definitely check with your attorney. If your trustee would take this $, then you should absolutely wait to start getting your benefits, as this will help you in the long run as every year you delay, your monthly payments by SS go up.

[AngelinaCatHub]

If you are working full time, and make over 12K Social Security will limit your payment. You are not allowed as a beneficiary to S.S. to make over 12K without penalty.

The longer you wait for S.S. the larger the eventual payment. I would wait and not rock your boat. If you ignore takeing S.S. don't mention it at all. If you decide to take it, you MUST tell your Trustee. Also because you are turning 62, you will not recieve your payments like the old days. Our wonderful Congress has a sliding scale by your birthday as to when you can take the money. 'Hub

[StartingOver08]

I agree with HUB on this one - if you can, wait until you are out of the Ch 13 to start taking your payments if you can. If you are making over the amount permitted, then it does nothing but create problems for you anyway. Here is the link to check what you are allowed to make before SS starts deducting from your payments (its a steep penalty):

http://www.socialsecurity.gov/pubs/10069.html#howmuch

[chucksherm]

Thanks for the responses. I do appreciate your input. To be clear, I could begin to collect $900/mo in addition to my work wages. Even if the trustee took half of that, I'd still be $450/mo better off than I am now.
I'm just wondering if he/she would take all of it into my 13 plan to pay creditors?

Chuck

[LuciluS]

I wouldn't draw your Social Security AND work too, if you can afford it. At least until you are able to draw the full amount of Social Security, which I know is not 62...is 65 under the 'old Laws'.

Mymother-in-law is 71 yrs., works full time job ($40,800 last year), draws Social Security and has an additional $200 a month deducted for Federal Income Taxes from her Social Security.

Every year, she ends up owing $2,000 or more when her tax return is prepared. I think I read somewhere, for every $2.00 you earn in Regular Wages and draw Social Security, you end up making $1.00, as the other $1.00 goes to Federal Taxes.

Luci

[StartingOver08]

Yes, read that link I posted earlier - it tells you what you are allowed to make and how much will be taken by the IRS:

If you reach full retirement age during 2009, we must deduct $1 from your benefits for each $3 you earn above $37,680 until the month you reach full retirement age.

Of course the link contains a lot more detailed info.

[chucksherm]

Thanks for the info. But, my question isn't about income taxes. According to the Social Security office, after allowing for my earned income(wages from my job) I could begin to draw $900/mo from social security in addition to the income from my job. If I wasn't working, I could draw $1800/mo. If I wait until full retirement, I could draw $2100/mo.
My question is, if I started to draw the $900/mo now, how much of it will the trustee take for the 13?

Thanks, Chuck

[EricaCallaha]

He would probably take most, if not all of it. It is a sizeable amount of income each month that could be used to pay your creditors. If you can...hold off until your 13 is finished.

Good luck.

[StartingOver08]

I agree with Erica. If the standard to put you into a Ch 13 is $166/month in available funds - then when the Trustee sees the $900 it is going to look like manna from heaven - remember, the Trustee gets a percentage of your payment too for their own pocket.

[chucksherm]

Thanks for all the info. I didn't realize the trustee got a percentage of the plan payment. What's the difference between that and a judge getting a percentage in a civil lawsuit?
Chuck

[MajorMike]

Chuck? What state are you in?

[sharina]

How would the trustee find the SS income? Is SS income reported on taxes and found that way?

[LuciluS]

How would the trustee find the SS income? Is SS income reported on taxes and found that way?

YOU BETCHA! Social Security issues a 1099 at the end of each Year.

Luci