What happens if you get an SSDI overpayment notice?

What happens if you get an SSDI overpayment notice?

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

What happens if you get an SSDI overpayment 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 overpayment notice. An SSDI overpayment notice will instruct you to return the excess amount within 30 days.

Unfortunately, if you’ve already spent it, or you’ve been overpaid for more than just a month. There have been cases in which people have been overpaid for years. You’ll have a hard time paying back what you owe within just 30 days. Fortunately, you do have some options.

Appeal Your SSDI Overpayment Notice

The fact that the Social Security Administration miscalculated your SSDI payments; paying you more than was due means that 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 overpayment 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 overpayment 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; then you can file a Request for Waiver of Overpayment Recovery or 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 overpayment because the money is needed to pay for your living expenses and if the over-payment was not your fault; meaning it was not the result of withholding information that would have affected your benefits amount.

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. This is not a fact that the Social Security Administration likes to advertise but amounts below $5,000 can be negotiated down by as much as 20 percent. More substantial amounts can be negotiated down even further. They are willing to negotiate because they know not everyone can afford the full amount — and if there’s a compromise, the beneficiary will be more likely to pay it.

Create a Payment Schedule

If you’re unable to pay the full amount you owe within 30 days-whether you’ve negotiated the amount or not- then you should be able to set up a payment schedule. The Social Security Administration may be willing to work with you. They may take ten percent out of your monthly benefits check to put towards what you owe; making it easier for you to pay it back.

Dealing with an SSDI overpayment notice can be financially challenging. Make sure you keep the Social Security Administration informed about all changes. If you have received an SSDI overpayment 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.

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