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North Valley SSDI Overpayments Explained by Chico Disability Lawyer

It’s important to know how much you should expect in your monthly SSDI payment so you can quickly take action against unexpected reductions. However, overpayment, or receiving a larger benefit than you’ve been officially allocated, can cause some real headaches if it goes on for too long unchecked.

Watch your monthly payment for these two potentially troublesome situations:

  • An unexpected increase in your monthly benefit.
  • Your monthly benefit staying the same when you were expecting it to decrease.

Many times, SSDI overpayment is the result of a claimant not reporting a life change that would have resulted in a reduction in his disability benefits. There are many things that can affect your monthly benefit amount, and it can be hard to know for sure what to report.

However, more often than you’d expect, overpayments occur because the SSA didn’t properly record and adjust a claimants benefits, even after a change was reported. Don’t think that’s going to be a problem for you? Please keep reading.

Why overpayment is a problem

California Social Security Disability overpayments are potential financial disasters for your household. It’s really easy for a discrepancy to go unnoticed, sometimes for several months—sometimes, even, more than a year. In that time, the overage amount could accumulate to thousands of dollars.

There isn’t a lot of ambiguity in the Social Security Administration (SSA) policy on overpayments. When the Administration finds an overage, they issue a Notice of Overpayment. The notice explains:

  • How much you have been overpaid.
  • An explanation for why you were overpaid.
  • Your options for repayment.
  • Your rights to waivers and appeals.

You will then have 30 days—from the date the notice was sent, not the date you received it—to repay the full amount of the overage to the SSA…even when the overpayment was the result of the SSA’s error!

Don’t wait to take action on a Notice of Overpayment, as it can result in some extremely unpleasant consequences, such as:

  • Garnishing your federal tax refund.
  • Reallocating funds from future SSI or SSDI benefits.
  • Reporting you to the credit bureau.

Are you a SSI or SSDI recipient in Northern California who has recently received a Notice of Overpayment? Protect your interests by reviewing the situation with a compassionate and knowledgeable North Valley disability benefits lawyer. The team at the Ledgerwood Law Group works on a contingent fee basis. Call to set up a no-cost consultation today at 888-761-7383.


Thomas Ledgerwood
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Proprietor Ledgerwood Law Group