The reason it’s so upsetting for most disability claimants to receive a Notification of Overpayment from Social Security is that they can’t possibly pay back the full amount of an overage in 30 days. As a Lincoln Social Security law firm, we’ve also had clients contact us because the overpayment was clearly the SSA’s fault, or the amount of the overage seems unreasonably high.

How Social Security Collects Overpayments

The administration offers several different collection options, depending on your situation.

  • If you are continuing to receive monthly SSDI compensation, you will have the entire amount of your monthly benefit withheld until your account is balanced, starting 30 days from the date on the notice. You may request that less than the entire amount of your benefit is withheld, but the SSA must agree.
  • If you are continuing to receive monthly SSI compensation, you will have 10% of your monthly compensation withheld until your account is balanced, beginning no sooner than 60 days after the date on the notice. You may request that less than 10% of your compensation is withheld, but the SSA must agree.
  • If you were overpaid SSI benefits, but are now exclusively receiving SSDI payments, you will have 10% of your SSDI payment withheld until your account is balanced.
  • If you no longer receive SSDI or SSI payments, you must repay the entire amount in 30 days or establish a repayment plan with Social Security.

Waivers and Other Special Circumstances

  • Agree that you were overpaid, but don’t have the resources to repay the SSA? You are able to apply for a waiver that may forgive the entire debt.
  • Agree that you were overpaid, but you can produce persuasive evidence demonstrating the overpayment wasn’t your fault? You may also apply for a waiver to forgive the full amount.
  • Don’t agree that you were overpaid or think that the SSA is in error about the overage amount or cited reason for the overage? You can apply for a reconsideration of your file.
  • Aren’t sure about your overpayment status or have questions that need answering? Don’t wait—talk to a dedicated Lincoln disability benefits attorney to learn more about your rights.

Do whatever you can to take action on the situation immediately, be sure to comply with all deadlines. Fees in overpayment cases are charged on a hourly basis, not contignency basis

If you’re scrambling to deal with a Notice of Overpayment, call the experienced Cuddigan Law  at 402-933-5405. Our informative report, Give Yourself the Best Chance of Winning Your Social Security Disability Case, is available to you free.

Sean D. Cuddigan
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SSA and VA Disability Attorney in Omaha, Nebraska