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FILING FOR BANKRUPTCY WHILE ON LONG TERM DISABILITY


a woman in a wheelchair being assisted by a man working on documents

Becoming too ill or injured to work is difficult enough, but mounting debt as you are not earning your regular income can add extra stress to your life. Long term disability only provides a percentage of your salary, while your expenses often remain the same. Unless you are particularly cautious with money and knowledgeable about how to cut back, financial matters can become significant.

That is why it is important to be mindful of how you manage your finances to avoid bankruptcy while on long term disability. Budgeting your spending is a helpful step for anyone who does not have substantial savings. Although long term disability provides some money to compensate for your inability to work, it is often not enough to sustain you without modest lifestyle choices.


STEPS TO OBTAIN LONG TERM DISABILITY

  • If you believe you are eligible for long term disability, it is advisable to act quickly in choosing your policy and plan, fax in your claims and ensure you receive a copy for your own records, free of charge by your insurance company. It is also necessary to file administrative appeals by a separate claim unit and include as much proof as possible to support your claims for long term disability.

  • Seeking the advice of other doctors who deal with disabilities can be helpful, as your primary doctor will likely be asked by the insurance company for specific details of your injury or illness. You will need to find medical professionals who agree with the diagnosis and can support your claim for reliance on long term disability. You may also want to request that they draft letters for you that indicate this.

  • You can provide your own evidence of an explanation in your words, via video statement or written sworn statement, which is also considerable evidence. It may provide even further solidity if you can obtain an independent medical evaluation, CT scan or MRI to help substantiate your claims of disability.


DEBT AND DISABILITY


D. & A. MacLeod offers quality licensed insolvency trustee and personal bankruptcy services to help individuals on long term disability develop an action plan. While on long term disability and earning only a percentage of your regular income, it is worthwhile to consult with an advisor who can review your finances and offer debt help and debt counselling in Ottawa, as well as credit counselling in Kingston and bankruptcy while on LTD. Even if you are approved for long term disability, many individuals are ultimately denied after two years. It is best to communicate with insurers in writing and to fax the material. You should also be mindful if you have any injuries that affect your writing and, in which case, have someone else do it for you and note it as such. Since you are not earning the same amount you would be from your job, it is important for individuals to be extra cautious with spending.

However, this may not always be possible if your expenses are greater than what you earn on long term disability, especially when your lifestyle was probably more aptly suited to the full amount of your income. Filing for bankruptcy while on long term disability is possible if needed. Owing at least $1,000 and not being able to keep up with your debts will automatically make you eligible to file for bankruptcy while on long term disability.


DEBT HELP & DEBT COUNSELLING IN OTTAWA


D. & A. MacLeod offers debt help and debt counselling in Ottawa, as well as advice on matters relating to bankruptcy and credit counselling in Kingston. Licensed insolvency trustees can provide significant guidance as you become overwhelmed and stressed with financial matters. Long term disability provides help to injured or ill individuals, but is not completely adequate for maintaining your individual cost of living. Contact us today for more information about our services and how we can help you.

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