Disability Overpayment

[slickwilly95991]

Husband was on SSI disability and recently came off. Now the SSA wants $190,000 back they claim they overpaid. Is this dischargable under ch. 7?

[lrprn]

Husband was on SSI disability and recently came off. Now the SSA wants $190,000 back they claim they overpaid. Is this dischargable under ch. 7?

Here's instructions from the Social Security Administration about how to request a waiver in this situation - http://www.ssa.gov/online/ssa-632.html and http://www.ssa.gov/ssi/text-appeals-ussi.htm

There is are specific SSA forms to fill out depending on what you want to do. The links to those forms are there on this linked page. I'm assuming you believe that your husband really wasn't overpaid - the form for that is SSA-561-U2 Request for Reconsideration.

Also the letter the SSA sent should have said that that if your husband believes he should not have to pay the money back, he needs to file a request for waiver of overpayment recovery. To file a formal waiver request, then he needs to also complete a form SSA-632-BK, Request for Waiver of Overpayment Recovery or Change In Repayment Rate.

All is not lost, SW - hang in there. If your husband truly wasn't overpaid, then he needs to try disputing this with the SSA first.

Here's a good explanation of SSI overpayments including the deadlines for making a request for reconsideration and waiver - http://www.ssa.gov/ssi/text-overpay-ussi.htm

If it does end up that he indeed does owe SSA the money, then at least one site says filing Ch 7 will wipe out what he owes unless the government can prove he committed fraud - http://www.totalbankruptcy.com/automatic_stay.htm - scroll down to the SSI/Food Stamps/Public Benefit Overpayments section. Can't say whether this is reliable information or not though. Only an experienced bankruptcy attorney in your area can give you that.

[kiddles]

Since it's a debt to the government, I'm thinking probably not, BUT I don't actually know anything, so take my thought with a HUGE grain of salt.

You probably need to talk to a very good BK attorney (or 3) and even a disability attorney.

GOOD LUCK!!

[DivorceRuinedMe]

Okay, I have VERY personal knowledge of this subject and I have to say that I have NEVER heard of a 190K overpayment from the SSI program. Did you mean 19K? Even that is stretching it as far as overpayments go on SSI. Unless there is fraud involved, SSI can only go back 2 years and two months maximum for an overpayment which would at most be only at a maximum $643 a month x 26 months. That does not even come close to equaling 190K.

So, please tell me the reason WHY you were overpaid and I will be better able to advise you.

[GivenGrace42day]

SSD Overpayment

After being on SSD I went back to work for a time until I just couldn't anymore. They knew I was going back to work as I did call them and was told that I would continue drawing checks.

Now , years later, I have been notified that I owe $23,000.00 to SSA as an overpayment "paid in error". I requested a reconsideration 2 1/2 years ago(06/05) after receiving the first notice of overpayment (I was no longer working). I did not hear back from them until 10/07 with the "updated amount" they now say that I owe. They sent me another letter this week saying that beginning Dec 2007 they will be witholding my entire Disability checks until 03/2010 for repayment.

I am now married and we cannot make ends meet without my income and I cannot work. Bankruptcy is definitely looking like a possibility to save our home.

Any comments or suggestions would be considered.

[qwertysue]

Husband was on SSI disability and recently came off. Now the SSA wants $190,000 back they claim they overpaid. Is this dischargable under ch. 7?

After being on SSD I went back to work for a time until I just couldn't anymore. They knew I was going back to work as I did call them and was told that I would continue drawing checks.

Now , years later, I have been notified that I owe $23,000.00 to SSA as an overpayment "paid in error". I requested a reconsideration 2 1/2 years ago(06/05) after receiving the first notice of overpayment (I was no longer working). I did not hear back from them until 10/07 with the "updated amount" they now say that I owe. They sent me another letter this week saying that beginning Dec 2007 they will be witholding my entire Disability checks until 03/2010 for repayment.

I am now married and we cannot make ends meet without my income and I cannot work. Bankruptcy is definitely looking like a possibility to save our home.

Any comments or suggestions would be considered.

Can you please clarify? The first post states that HUSBAND was on disability and the second points that YOU were on disability.

According to the second post you got remarried to another man who wasn't on disability?

WHO is the one who received the overpayment, you or husband mentioned in first post? Is it a legitimate overpayment or do you believe it to be in error?

[JollyGG]

Can you please clarify? The first post states that HUSBAND was on disability and the second points that YOU were on disability.

According to the second post you got remarried to another man who wasn't on disability?

WHO is the one who received the overpayment, you or husband mentioned in first post? Is it a legitimate overpayment or do you believe it to be in error?

Two different members posting. slickwilly95991 was the original poster (OP), and GivenGrace42day posted later with their similar problem.

[qwertysue]

Two different members posting. slickwilly95991 was the original poster (OP), and GivenGrace42day posted later with their similar problem.

DOH! See what happens when one posts before their morning caffeine?

[GivenGrace42day]

Sorry for the confusion...

OK, I will stay away from the disability overpayment for now as I do see that I need to continue in that paperwork before I am ready to file Bk...I still have some options to hold them back from taking the entire check...atleast for another month.

I'm just feeling very overwhelmed.(putting it lightly)..Aside from that potential loss of income , we still have a 9 month old mortgage, 2 car payments and 43K in unsecured debt (not including the 24K from SSA). It is eating me from the inside out. It is on my mind every waking moment. I'm exhausted and it is very hard work keeping all of these minimum payments, utilities, and medical bills paid every month on time. I need relief. I can no longer afford medications that I really should not be doing without.....this is insane.

Help....