Ask Bill your personal finance question

All About Social Security Overpay Debt

Can you help me get out of debt on back SSI payments that they overpaid me?

Can you help me get out of debt on back SSI payments that they overpaid me?

Read full question
Bill's Answer
3.7
/5.0
(7 Votes)

Bills.com | Find Learn Save

For some reason, overpayments by the Social Security Administration (SSA) seem to be a relatively common problem.

If the SSA realizes that it has overpaid you, it will ask for you to pay back the money, even if the error was not your fault. While there is a procedure in place for appealing notices of overpayment, more often than not benefit recipients will be required to repay the overpayment through a repayment arrangement or a compromise settlement. If you take no action to resolve the overpayment, the SSA will likely withhold your benefits, applying your monthly benefit to repay the overpayment. Once the overpayment is satisfied, you will begin receiving benefit checks again.

If you received a notice of overpayment, you need to contact the SSA to appeal the notice. You can appeal if you feel that you were not overpaid, that the request for repayment is unfair, or that it would cause you an undue hardship. While these are all valid reasons for an appeal, an appeal does not guarantee that you will not be required to pay back the amount that was overpaid. For an in depth discussion of the appeals process, you should visit http://www.ptla.org/overpay.htm.

For an official discussion of overpayment appeals process and to obtain the necessary forms, you can visit the SSAÂ’s website at http://www.ssa.gov/online/ssa-632.html

As mentioned before, most people are required to repay any overpayment made by the SSA. However, the SSA does allow beneficiaries to negotiate payment arrangements and compromise settlements. Decisions about payment plans and settlements are based on the recipientÂ’s ability to pay and several other factors. Visit the two sites mentioned above for more information about repayment options.

I wish you the best of luck as you try to resolve your dispute with the SSA. I hope that the information I have provided helps you Find. Learn. Save.

Get Debt Help!
3.7
/5.0
(7 Votes)

People also like to Read

Betsalel Cohen

Low Interest Personal Loans | Personal loans are an alternative to credit cards. You will need good credit and stable income,... Read more >>

Daniel Cohen

We recommend Freedom Debt Relief for consumers with financial hardships looking to resolve their unsecured debts as quickly a... Read more >>

Betsalel Cohen

Unsecured Personal Loans | Unsecured personal loans are offered by big lenders and many sites online. If you have bad credit,... Read more >>

Betsalel Cohen

Debt Management | Many of us have debt problems. Some of us can solve go it alone, while others need professional debt servi... Read more >>

Mark Cappel

Reputable debt consolidation companies are easy to find, if you know what to look out for. This most important thing you need... Read more >>

Daniel Cohen

Find out more about the hardship loan options available to you, and the factors you need to consider to find the right option... Read more >>

Betsalel Cohen

Free Debt Relief Programs | Avoid scams that promise you free money or free debt relief. Use the FREE program to help you get... Read more >>

Betsalel Cohen

Debt Management Plan | Credit counseling and DMP is one form of debt relief. Learn the steps to take to make Your Debt Manage... Read more >>

1 Comments

1500 characters remaining
  • JH
    Sep, 2007
    jim
    My wife has received a notice in Aug. 2007 that her SSD will be garnished 100% to repay an overpayment made to her son plus what appears to be $1200 interest. This was her/our first and only notice of this pending action. My stepson had his overpayment dismissed in Jan. 2007 by appeal due to their (SSA) error and he couldn't repay since he was a student. My wife never received the funds so how can she/we be responsible for paying back something we never received? Is this common practice too, dismissing it knowing they would take it from the parent and get these penalty fees? Seems like they have a pretty good racket going.
    0 Votes

loading...