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Ledgerwood Law Group

Chico Disability Lawyer Explains How SSA Overpayments Are Collected

It can be terrifying to receive a Notification of Overpayment.

Many of the people who are receiving Social Security disability benefits don’t have the financial reserve necessary to pay back the full amount of an overage within a month. It’s also possible that you are justifiably angry because the amount on the overage notice seems too high—or, worse still, the problem was clearly an error on the part of the Social Security Administration (SSA), and now you must find some way to cover this unexpected expense.

Repayment options for SSA overages

Depending on your situation, the SSA has different collection options:

  • Continuing SSDI recipients will have the full amount of their monthly benefit payment withheld until the overpayment is balanced, starting 30 days from the date on the notice. Pending SSA approval, you may request that less than the full amount be withheld from each payment.
  • Continuing SSI recipients will have 10 percent of their monthly benefit withheld until the overpayment is balanced, starting no earlier than 60 days after the date on the notice. Pending SSA approval, you may request that more or less than 10 percent be withheld from each payment.
  • Recipients who were overpaid SSI benefits, but are now only receiving SSDI payments, will have 10 percent of their SSDI payment withheld to balance the overpayment.
  • Former recipients of SSDI or SSI are required to repay the full amount in 30 days or establish a repayment plan with the SSA.

Special circumstances

  • If you agree that you were overpaid but do not have the resources to repay the SSA, you may apply for a debt forgiveness waiver.
  • If you agree that you were overpaid and can produce hard evidence demonstrating the overage was not your fault, you may also be able to obtain a waiver.
  • If you don’t agree that you were overpaid, believe the overage amount or reason the SSA cited for the overage is wrong, you can request a reconsideration of your file.
  • If you aren’t sure about your overpayment status or have any questions about the situation, contact a Northern California disability benefits attorney to learn more about your options and rights.

Whatever happens, 30 days is even less time than you think. If you can’t afford to lose a full SSDI check or believe you qualify for a special circumstance, make sure you or your legal representation take action on the situation immediately.

Appealing a notice of overpayment or unfavorable SSDI decision in Chico? The Ledgerwood Law Group knows how the system works and may be able to help. Call our offices toll-free to schedule a no-cost consultation: 888-761-7383. Don’t wait another day.


Thomas Ledgerwood
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Proprietor Ledgerwood Law Group