What happens if you get an SSDI over payment notice?

What happens if you get an SSDI over payment notice?

SSDI Over payment
Contact us if you receive an SSDI Overpayment Notice

What happens if you get an SSDI over payment notice?

If you’re receiving Social Security Disability Insurance (SSDI), then odds are that you just assume that the amount that the Social Security Administration is sending you every month is the correct amount. However, this is not always the case. They sometimes overpay, which can happen if you didn’t report something that may have affected your eligibility or benefits amount. If this happens, you’re likely to receive an SSDI over payment notice. An SSDI over payment notice will instruct you to return the excess amount within 30 days.

Cases in which people have been overpaid for years do happen. Unfortunately, you may be in trouble if you already spent it, or you receive too much for longer than a month.  You’ll have a hard time paying back what you owe within just 30 days. Fortunately, you do have some options.

Appeal Your SSDI Over payment Notice

If they miscalculated your SSDI payments, they may have made a mistake determining that they overpaid you as well. If you don’t think they’re correct in sending you an SSDI overpayment notice, then you can appeal their decision by filing a Request for Reconsideration (SSA Form 561).

You will have 60 days after you’ve received your SSDI over payment notice to file a Request for Reconsideration; however, if you file within ten days of receiving the notice, you won’t have to worry about having to pay what the Social Security Administration believes that you owe them until a decision has been made concerning your reconsideration.

Filing a Request for Reconsideration is a good idea even if you aren’t sure whether the SSDI over payment notice was justified or not. This is because it forces the Social Security Administration to double check and gives you extra time to come up with the payment that you may owe. You’ll need to present evidence to a Social Security representative at an informal hearing to support your argument. If your reconsideration request is denied, you’ll have 60 days to request a hearing in front of an Administrative Law Judge.

Request a Waiver

If you can’t afford to pay the amount that was overpaid and your reconsideration request has been denied, there are two things you can do. You can file a Request for Waiver of Over payment Recovery, or file a Change in Repayment form (form SSA-632). The Social Security Administration will often grant a waiver if you

  • can’t afford to pay back the over payment
  • because you need the money to pay for your living expenses
  • the over-payment was not your fault

If your waiver is denied, you’ll be able to appeal the denial at your local Social Security office where you can argue your case to a representative. If you’re still denied, you can request reconsideration as well as an administrative hearing.

Negotiate the Over payment Amount

If you’re unable to obtain a waiver because you were at fault for not reporting certain information; then you may be able to negotiate the amount. Amounts below $5,000 can be negotiated down by as much as 20 percent. More substantial amounts can be negotiated down even further. They know not everyone can afford the full amount. If there’s a compromise, the beneficiary will be more likely to pay it.

Create a Payment Schedule

If you’re unable to pay your full amount within 30 days, you should be able to set up a payment schedule. The Social Security Administration may be willing to work with you. In fact, they may take ten percent out of your monthly benefits check to put towards what you owe. This makes it easier for you to pay it back.

Dealing with an SSDI over payment notice can be financially challenging. So, make sure you keep the Social Security Administration informed about all changes. If you have received an SSDI over payment notice, contact us at Social Security Disability Advocates USA by calling (602) 952-3200. We can provide a free consultation regarding your specific case today.

The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice. This information is not intended to create, and receipt or viewing does not constitute, a representative-client relationship.

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