Financial Hardships and Disability Claim

[Michael43]

Hello all.  I just wanted some support in a question I have about our finances/relationship.  My wife w/BPD and I are still married but we have a separate maintenance order for our finances.  This would give me some protections if she declares bankruptcy.

My wife lost her job in June but has been working full time at a new job.  Lately she has only been working part time and has a dissociative episode where she will space out or collapse and have to go home almost daily.  So, she had been working part time only.

Her liquid finances are almost wiped out.  She is on health insurance through COBRA, but it is costly.  She has had multiple psychiatric hospitalizations and ER Visits.  When I ask her about her plan for finances she just says, "I don't know."  or "It doesn't matter."  She does not seem to be concerned that her money is almost gone.  I have asked her to conference with a bankruptcy attorney for advice, but she says that means I'm "forcing her to declare bankruptcy."  I will not and legally can not pay her medical bills under our financial settlement.  I also feel paying off her bills would not hold her accountable for her behavior or her lack of taking care of herself.

I did have to set a boundary that if she chose not to work I would require her to move out.  That at least got her to go to work.

She has said she wants to apply for disability. This is a breakthrough as I have been trying to get her to do this for YEARS.  I know the process can be long, difficult, and possibly take years to get it approved.  Do you have any advice for a possible claim?

She makes too much money to qualify for Medicaid.  However, she makes too little to cover her past healthcare bills and COBRA.  If she declares bankruptcy I am still liable for several thousand dollars of her medical bills before the financial separation, but I think a divorce would cost just as much or more just in legal fees.  I am meeting with my attorney to discuss about this soon.  I do have a 4 year old daughter which complicates things immensely.

[flourdust]

Hi, Michael43. I have a little experience with this.

I suggest that you interview a disability law firm. They will help you and your wife put together the application and advise you on the likelihood of success and the implications. I believe that most of these firms are paid on a contingency basis -- they get nothing unless your wife is granted disability status, and then they take a cut of the back pay.

The process of applying for disability usually involves a cycle of being rejected and appealing a few times before you get a final ruling. This can take a few years or even longer. If the finding is positive, it's retroactive to the date of the disabling event (that's where the back pay I mentioned comes in), but it will take some time for you to get there.

[formflier]

What flourdust said is right on point.

I just got approved for SSDI.  Is that what you are talking about? 

Most of the approvals happen at the administrative law judge stage, which from memory is the "third" stage.  To be frank, you have to be on deaths door to get approved at the "application" stage or the "appeal" stage. (steps 1 and 2).

I was "fast tracked" because of my Veteran status... .so it took me approximately a year and a half.  (that was fast... .my lawyer was shocked how fast it went).

I say that to manage expectations.  Likely several years.

It doesn't sound like her cash flow is good for several years.

Is she getting regular medical care that documents these issues happening at work?

FF