Question Long Term Disability and Pay back and Chapter 13

[freeme0215]

Hello,


I went on LTD Sept 2009
I filed SSDI in Feb 2009

Just received an email from the LTD attorney(used LTD carrier's attorney) that I have been approved for SSDI (April 2011).

I filed for Chapter 13 Bankruptcy in June 2010
Confirmed in Sept 2010

The LTD carrier wants all the Social Security disability back pay.. How can I use the Chapter 13 or can I?

I did not list the LTD carrier on my Chapter 13 as I was turned down by SSDI twice and was not aware of the payback to LTD ....

Does anyone know if I can now list the LTD carrier as a "creditor" ????

I am simply so confused and need some insight

Thanks

[chrisdfw]

Hello,


I went on LTD Sept 2009
I filed SSDI in Feb 2009

Just received an email from the LTD attorney(used LTD carrier's attorney) that I have been approved for SSDI (April 2011).

I filed for Chapter 13 Bankruptcy in June 2010
Confirmed in Sept 2010

The LTD carrier wants all the Social Security disability back pay.. How can I use the Chapter 13 or can I?

I did not list the LTD carrier on my Chapter 13 as I was turned down by SSDI twice and was not aware of the payback to LTD ....

Does anyone know if I can now list the LTD carrier as a "creditor" ????

I am simply so confused and need some insight

Thanks

If your LTD policy says that benefits are offset with social security they have the right to the back pay money. I don't think they are a creditor.

If you don't pay it they probably have the right to offset with future benefits. Just guessing. But to keep the back pay after collecting the higher benefits you recieved from the carrier is double dipping. They are probably entitled to it. Most LTD policies say that your benefits are reduced by any other disability benefits payable. I don't think you can keep it, especially after using their attorney?

[kornellred]

If you do not pay back to your LTD carrier any money you owe them, guess what will happen? They will stop paying you LTD benefits - simple as that.

[brokeinal]

They are not a creditor.

If you don't return the money to them (you should be getting a lump sum check backdated to your original DOD from SSDI that would cover this), SSDI can stop paying you or they can get a lien against your SSDI payments and/or stop paying you LTD until the benefits they've not paid you equal to the benefits that should've been offset/repaid all along. They're going to get it one way or another.

And the LTD payback was listed in the original LTD paperwork you received, I guarantee you. You sign something in your original LTD paperwork package when you first submit your claim that states if you're approved and qualify for SSDI and are approved for it, you agree to payback the LTD benefits that are offset by the SSDI when you get your SSDI lump sum check. The easy answer is not to cash and spend that lump sum check.

- former LTD acct mgr