A few details are emerging about Binder and Binder's bankruptcy. The company, which is not a law firm, listed its assets and liabilities as being between $10 million and $50 million. The biggest creditor was Stellus Capital Management at $16.7 million. However, the company had to get a secured loan of $23 million from US Bank and Capital One to stay in business.
Dec 20, 2014
Dec 19, 2014
Issa Report On ALJs
Darrell Issa's House Committee on Oversight and Government Reform issued a report yesterday on Misplaced Priorities: How the Social Security Administration Sacrificed Quality for Quantity in the Disability Determination Process. The report talks about the great pressures that have been placed upon Social Security's Administrative Law Judges (ALJs) to produce as many decisions as possible. The report accepts at face value the assertion that the pressures to produce have led to a higher proportion of favorable decisions issued. The report demands that Social Security fire some ALJs, which it lists by name, and discipline others. The report insists that Social Security should stop hiring more ALJs and focus its efforts on controlling ALJ decision-making.
Social Security lacks the power to act against ALJs in the manner recommended by the report. To protect ALJs from agency influence, it's quite difficult to fire or discipline them. What Issa wants is heavy-handed agency influence on ALJ decision-making. You can't do that.
A halt in hiring of ALJs and a total focus on controlling ALJ decision-making would result in an explosion of Social Security's already unacceptable hearing backlog. Darrell Issa might be happy with that but it's unworkable. It's inevitable that as the hearing backlog explodes media coverage of the backlog will explode.
Binder and Binder In Bankruptcy
The Wall Street Journal is reporting that Binder and Binder filed for Chapter 11 bankrupcty last night. I wonder what they're telling their employees.
Dec 18, 2014
TV Station Covers Hearing Backlog
A Nevada television station is continuing to cover Social Security's serious hearing backlog.
Dec 17, 2014
ABLE Act Approved By Congress
The Senate approved the ABLE Act last night and sent it to the President. Here's a description of ABLE:
Modeled after tax-free college savings accounts, the ABLE bill would amend the federal tax code to allow states to establish the program.
To qualify, a person would have to be diagnosed by age 26 with a disability that results in "marked and severe functional limitations"; those who are already receiving Social Security disability benefits would also qualify. Families would be able to set up tax-free accounts at financial institutions, depositing up to $14,000 annually to pay for long-term needs such as education, transportation and health care.
The contributions would be in after-tax dollars but earnings would grow tax-free.
The ABLE accounts would be able to accrue up to $100,000 in savings without the person losing eligibility for government aid such as Social Security; currently, the asset limit is $2,000. Medicaid coverage would continue no matter how much money is deposited in the accounts.
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