Timing for modification of SS, if needed

[tuffbrk]

What is the name of your state (only U.S. law)? NJ

Divorced January of 2008. Paying SS. Advised being laid off eff 9-29. Receiving severance for appr. 1 yr, however 1/3 will be needed to repay 401K loan. I understand that I'm to apply for unemployment while receiving severance.

If I presume that I'll be able to "last" appr 7 months prior to being broke, at what point in time would I apply to the courts for a modification to SS (yes, it can be modified) if I'm unable to secure a comparable salary in a new position? Tad worried as I'm in the mortgage business and as most know, it's tanked right now.

Thanks for any guidance.

 

[Ohiogal]

Doublecheck because you may not receive unemployment if you have a severance. I got a severance at one point in my life and unemployment would give me NOTHING until the severance was exhausted.

 

[CJane]

Honestly, I'd apply for it at the outset of the unemployment. You KNOW ex will drag it out as long as possible and you're going to kick yourself if you wait 6 months and it takes 10 to get it modified.

 

[LdiJ]

Honestly, I'd apply for it at the outset of the unemployment. You KNOW ex will drag it out as long as possible and you're going to kick yourself if you wait 6 months and it takes 10 to get it modified.

The only problem with that is that she will be receiving severance, presumably in the amount of her salary, therefore she won't have any proof that her income is decreasing, until or unless she can't get a job making a comparable salary....or until the severance has run out.

I would say start it 3 months or so before the severance runs out, and prove that she has been diligently looking for a job.

I am also going to give you some practical advice (from experience). Do as much downsizing as you possibly can, immediately.

 

[tuffbrk]

Thank you Ladies! Appreciate your time...

LdiJ - posting on the tax forum if you get a chance later....