Getting Disability Loan_ Eligibility And Filing Process

Getting Disability Loan: Eligibility and Filing Process

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE On Getting Disability Loan: Eligibility and Filing Process Was PUBLISHED On February 1st, 2019

Disability loans are a serious matter that should not be taken lightly. Any loan for that matter is a deliberate issue and must be handled in a delicate way. Studies have found that a whopping one in four people will be disabled before they retire. Disability loans are then essential given that it is more often than not, difficult to get a loan when facing physical incapability. Either some companies do not allow for anyone with a disability to work under such circumstances, or someone who is a disabled will, in fact, have a hard time working; a loan, in this case, would be extremely helpful. Disability loans can work in one of two ways; if there are previous loans, such as student loans, they will get discharged or excused; registering for a loan subsequent to disability. The latter is treated almost as equally as a normal loan by proving the need for it. Below are some points to put into consideration prior to applying for a disability loan.

Eligibility To Qualify For Disability Loan

Given the recent surge in technological scams, to be eligible for a disability loan you have to prove that you really are unable to work due to a disability or a disease/illness for instance. Medical conditions that are classified as a “disability” include musculoskeletal problems (i.e. Bone injuries), cardiovascular problems, speech issues, neurological disorders, mental disorders, cancer, hematological disorders, etc. With a musculoskeletal problem/neurological disorder such as quadriplegia, it can be quite difficult to do most tasks. With medical confirmation, a medical such as this one is eligible for acquiring a loan. One main element of a loan though is paying it back eventually. If the person can also prove they can somehow pay the loan back in a couple of months or years or have a relative or a family member that can pay for it. Another way that contributes to a disability loan is to get student loans discharged. To be eligible for that, someone who is disabled must be near permanently disabled and will really have a hard time ever paying back those student loans. A bank statement proving its difficulty as well as a first-hand family member (wife, husband, children, siblings, parents) must prove that they too cannot pay those fees. One of the main points to be eligible for filing for a loan of this sort is to be from or a citizen of the country or state you are applying in. For instance, if you are a citizen of Canada, you must file in Canada and not the United States. The only instance that disregards this point is if the person has an immigrant status, but filing for that takes even longer and is a much harder process.

Filing Process

In the States and Canada, there are several ways to file for a disability loan. For instance, in Canada, there is “Disability Loans Online Canada” which can help those with a disability receive money. In general, those take a longer time to file for as you do not have to prove that you can pay it back in a limited time, they need proof of an incoming settlement that will occur in the future to pay back the loan. The application starts with general contact information and asking how much they need (a range between 3k and 49k). It goes on to ask why they need a loan, for instance, to pay off student loans, to pay off bills, for leisure, bank debt, or credit card consolidation and several others. The application is then processed, more specific and personal questions are asked, and more often than not, a face to face visit will be necessary. In Canada, especially in Ontario, having a disability is a weighty issue. Jeffrey Preszler from Preszler Law explains in the article “How Much Can I Receive on Disability in Ontario?” that if an employer fired a disabled employee because of their disability, they may have violated the Ontario Human Rights Code. According to the Americans with Disabilities act, being fired from a job due to a disability can lead to a civil suit as this is an act of discrimination. It is filed under wrongful termination, and a complaint to the Equal Employment Opportunity Commission should be pursued. One way that the employer may not be sued for such an action is if they provide exceptional compromises or reconciliation for those with such an impairment. If the impairment truly does make a huge impact on the organization, then and only then can someone with a disability be terminated, but still complying with reasonable compensation.

You can also apply for a Social Security Disability Insurance and that goes through several steps. The first of which is a disability determination process (which is included in other forms of applying for a loan, they must go through the Social Security Administration, the SSA, Disability Determination Services (DDS), and when both give the green light, then will the candidate be considered. This can be via mail or in-person and must include a form that details the impairment, how it is being treated, and other proof of disability. It must be noted though that to apply for a Social Security Disability Insurance, one of your previous jobs must have been covered by Social Security. In this process, though you do not have to permanently disabled to file for this loan. The process takes the time to see whether the loan will be needed for one year, two, or even more, until it can be paid back.

Wrapping Up – Things to Know Beforehand

In general, there are about five things that people must know before applying for a loan. Depending on what type of loan you are receiving, initially, most institutions, equally regard someone who is disabled and someone without impairments. They look at five things, credit history, meaning that you have paid any previous credit on time and without a doubt. They will look at income, these changes, though when applying for a disability loan, as they look at previous income if you cannot work at all. They will also have to look at monthly payment obligations to make sure you need the money to pay for rent for example. The main thing they will also look at is the assets. This is in case the money cannot be paid back, getting a hold of assets will have to be the way to go. Finally, they look at the contact information. Most creditors or institutions need to see previous employment or even current employment if possible, in order to assess the person asking for a loan. With disability loans, they go a step further, but that depends on the type of loan asked for. All in all, asking for a loan is a difficult process, and there can be many repercussions, therefore knowing all risks and benefits is really essential.

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