If you receive Social Security Disability Insurance (SSDI), you may face an unexpected overpayment notice from the Social Security Administration. An SSDI overpayment occurs when you receive more benefits than you are entitled to receive. This can happen for several reasons, and the good news is that you have options to address it. You can request a waiver, set up a payment arrangement, or appeal the overpayment decision. Understanding how to qualify and apply for SSDI overpayment relief helps you protect your benefits and financial stability. Hankey Marks & Crider helps Indiana residents handle overpayment disputes and find the right path forward.
Understanding SSDI Overpayments
An SSDI overpayment happens when the Social Security Administration determines you received more benefits than you should have. This can occur due to unreported work activity, changes in your medical condition, missing information in your file, or errors made by SSA itself. When SSA identifies an overpayment, they send you a notice explaining the amount owed and how they plan to collect it.
The SSA begins collection efforts approximately 60 days after sending your overpayment notice. However, you have 30 days from receiving the notice to request a waiver, reconsideration, or payment arrangement. If you file a waiver request or reconsideration within 30 days, SSA will stop withholding from your benefits until they reach a decision on your request. If you do not respond within 30 days, SSA will automatically withhold 50% of your SSDI benefit each month or 10% of your SSI payment, whichever applies to you. They may also offset your federal tax refunds or garnish your wages to recover the overpayment. For detailed information on overpayment rules, consult the official SSA overpayment guidance.
Why Choose Hankey Marks & Crider
Hankey Marks & Crider represents SSDI recipients throughout Indiana who face overpayment disputes. Our team brings over 80 years of combined experience handling Social Security Disability cases. We hold recognition from the National Trial Lawyers Top 40, Avvo Top Attorney Social Security, and Super Lawyers 2021. We understand the stress an overpayment notice creates, and we work to protect your benefits and financial future.
We offer free consultations and work on a contingency fee basis, meaning you pay nothing unless we win your case. Our attorneys evaluate your situation, explain your options, and guide you through the waiver, appeal, or payment arrangement process. With multiple attorneys who focus on Social Security Disability law, we bring strong knowledge to every case we handle. Whether you need help with a disability benefits claim or an overpayment dispute, our team stands ready to assist.
Qualifying for an Overpayment Waiver
A waiver eliminates your obligation to repay the overpayment. To qualify for a waiver, you must meet two conditions: the overpayment was not your fault, and you cannot afford to repay it without hardship.
The “without fault” standard means SSA cannot prove you caused the overpayment through intentional misrepresentation or failure to report required information. If SSA made an error or you did not know you needed to report something, you may qualify. Financial hardship means repaying the overpayment would prevent you from meeting basic living expenses like food, housing, or medical care.
You request a waiver using Form SSA-632-BK, Request for Waiver of Overpayment Recovery. You can file this form at any time since there is no deadline. However, filing quickly protects you from automatic withholding while SSA reviews your request. Hankey Marks & Crider helps you gather the documentation SSA needs to approve your waiver, including financial records and statements explaining why the overpayment was not your fault. The SSA provides official guidance on requesting a waiver to help you understand the process.
Steps to Request Overpayment Relief
Follow these steps to address your SSDI overpayment:
Step 1: Review your overpayment notice carefully. The notice explains how much you owe, why SSA says you were overpaid, and what options you have.
Step 2: Determine your best option. You can request a waiver, appeal the overpayment, or set up a payment arrangement. Your choice depends on whether you believe the overpayment was your fault and whether you can afford to repay it. If you believe SSA made an error in calculating your benefits, an appeal may be your strongest option.
Step 3: Gather supporting documentation. For a waiver request, collect financial records, medical evidence, and written explanations. For an appeal, gather evidence showing SSA made an error. If your overpayment resulted from unreported work activity, you may want to review SSDI work incentives to understand how future earnings affect your benefits.
Step 4: Submit your request within the appropriate timeframe. Appeals must be filed within 60 days of your overpayment notice. Waiver requests have no deadline, but filing quickly stops automatic withholding. The SSA’s official appeal process provides detailed instructions on submission methods.
Step 5: Follow up with SSA. Keep copies of everything you submit and track your case status through your SSA account or by calling your local SSA office. Hankey Marks & Crider monitors your case and communicates with SSA on your behalf.
Repayment Options and Arrangements
If you do not qualify for a waiver or choose not to request one, you can set up a payment arrangement. SSA automatically withholds 50% of your SSDI benefit or 10% of your SSI payment each month. This may be more than you can afford.
You can request a lower payment amount using Form SSA-634, Request for Change in Overpayment Recovery Rate. SSA will consider your financial situation and may agree to a smaller monthly payment spread over a longer period. You can also request to repay the overpayment through a lump sum payment if you receive a tax refund or settlement. Hankey Marks & Crider negotiates payment arrangements that protect your ability to meet basic living expenses while resolving your overpayment.
The Appeal Process
You have 60 days from the date you receive your overpayment notice to file an appeal. An appeal challenges SSA’s decision that you were overpaid. You can appeal if you believe SSA made an error in calculating the overpayment, misunderstood your work activity, or failed to consider relevant information.
To file an appeal, you can submit Form SSA-561-U2 online at secure.ssa.gov/iApplNMD/start or mail it to your local SSA office. During the appeal, an SSA representative reviews your case and may request additional information. If SSA denies your appeal, you can request a hearing before an administrative law judge. Hankey Marks & Crider represents clients through the entire Social Security Disability appeal process, including hearings and further appeals if necessary.
Frequently Asked Questions
What is the difference between an SSDI overpayment and an SSI overpayment?
SSDI is based on your work history, while SSI is based on financial need. Overpayment rules differ slightly between the two programs. SSDI overpayments result in 50% benefit withholding, while SSI overpayments result in 10% payment withholding. The SSA’s official SSI overpayment page provides detailed information on SSI-specific rules. Hankey Marks & Crider handles both types of overpayment cases and understands the nuances of each program.
Can I request a waiver if I was at fault for the overpayment?
The “without fault” standard is strict. If you intentionally failed to report income or misrepresented your situation, you likely do not qualify for a waiver. However, you can still request a payment arrangement or appeal if you believe SSA made an error. Many overpayments result from misunderstandings about work incentives and earnings limits, which may support a “without fault” finding.
How long does it take to resolve an overpayment?
Processing times for waiver requests vary depending on case complexity and current SSA workload. Appeals can take several months. Hankey Marks & Crider works to resolve your case as quickly as possible and keeps you informed throughout the process.
What happens if I don’t respond to an overpayment notice?
SSA will begin automatic withholding from your benefits after 30 days. This continues until the overpayment is repaid. Responding quickly protects you from losing a large portion of your monthly benefit. Time is critical. Do not delay in contacting Hankey Marks & Crider or SSA.
Can Hankey Marks & Crider represent me in an overpayment dispute?
Yes. Hankey Marks & Crider represents SSDI recipients in waiver requests, appeals, and payment arrangement negotiations. Contact us for a free consultation to discuss your case. We work on a contingency fee basis, so you pay nothing unless we win.
What if my overpayment resulted from work activity?
If you earned income that triggered the overpayment, understanding SSDI work incentives is essential. The Trial Work Period and Extended Period of Eligibility provide protections that may have been overlooked. Hankey Marks & Crider reviews whether SSA properly applied work incentives to your case.
Get Help with Your SSDI Overpayment
An SSDI overpayment notice does not mean you have lost your benefits. You have options, and Hankey Marks & Crider helps you pursue the right one for your situation. Whether you qualify for a waiver, need to appeal, or want to negotiate a lower payment arrangement, our team guides you through every step.
Do not let automatic withholding drain your monthly benefit. Call (317) 634-8565 today for a free consultation. We work on a contingency fee basis, so you pay nothing unless we win your case. Time matters as appeals must be filed within 60 days of your overpayment notice. Contact Hankey Marks & Crider now to protect your SSDI benefits.