Helping a person on SSI

[DaMa]

My cousin is on SSI.  She was renting 4 years ago, and then moved to live with a friend.  Apparently she had 3 months to go on her lease, and is now showing an $1800 debt to the landlord.  This is effecting her ability to get new housing.  I want to pay the $1800, but will this negatively impact her SSI payments?  Based on my reading, it would.  And I could help her cover that loss.  Rinse and repeat.

If I pay the landlord directly, and she never touches the money, would it still count?

I realize appreciate any insight or advice.  TIA!

[Catbert]

I do not know all the detailed rules about SSI.  I would negotiate with the former landlord to settle for a smaller dollar amount and to remove derogatory information from whatever database is preventing your cousin from getting a rental.

I would not give money to your cousin because it could mess up her SSI and/or could be spent on things other than back rent.  You might be able to better negotiate with the landlord - after 4 years the chance of your cousin paying is near zero.

[DaMa]

I do not know all the detailed rules about SSI.  I would negotiate with the former landlord to settle for a smaller dollar amount and to remove derogatory information from whatever database is preventing your cousin from getting a rental.

I would not give money to your cousin because it could mess up her SSI and/or could be spent on things other than back rent.  You might be able to better negotiate with the landlord - after 4 years the chance of your cousin paying is near zero.

Thanks, Catbert!  I'll definitely explore that idea. 

[SavinMaven]

I have been there, done this with a relative in the past myself, so I understand how it can feel as though you have no choice but to help them out of the hole they've dug. From your "rinse and repeat" comment it seems as though you may be getting tired of bailing her out?

She broke her lease agreement with her landlord. THAT is why she is having trouble getting new housing. Why are you trying to remove the consequences of her breaking her lease? When people do things without consequences, they learn rules don't apply to them and expect that rules will continue to not apply to them.

$1800 may be a relatively affordable lesson compared to what may be coming down the road for her. Are you sure you want to be the rescuer for much longer?

[giggles]

In SSI terms, paying her rent directly to her landlord to cover her debt would be called “outside ISM” - it’s when you have rental liability but someone else who doesn’t live with you covers your rental payment. It may temporarily reduce but probably not eliminate her check because outside ISM is capped, no matter how much you pay for her. It would depend on some factors specific to her claim.

Giving her the money directly would also result in the check being reduced or temporarily suspended - it would count as unearned income, which has no cap.

[DaMa]

In SSI terms, paying her rent directly to her landlord to cover her debt would be called “outside ISM” - it’s when you have rental liability but someone else who doesn’t live with you covers your rental payment. It may temporarily reduce but probably not eliminate her check because outside ISM is capped, no matter how much you pay for her. It would depend on some factors specific to her claim.

Giving her the money directly would also result in the check being reduced or temporarily suspended - it would count as unearned income, which has no cap.

Thanks, giggles!  The outside ISM seems the best way to go.