Legal Question in Social Security Law in Oklahoma

Re: social security disability overpayment.

Social Security has been more agressive recently in collecting overpayments. They certainly have the right, as any creditor would, to use whatever legal means a creditor would have to get a judgement and collect on that judgment.

Normally, they don't bother to get a judgment, but simply use the methods allowed them in the law to collect without a judgment. They can collect it from any future benefits paid on the same earnings record of the same wage earner (including spouse or children's benefits). They can collect it from a federal income tax refund as well. Finally, they can report it to credit agencies as a bad debt.

If you are faced with an overpayment letter from Social Security, you have some options. First, do you agree that the overpayment occurred? Sometimes Social Security makes a mistake and sends the wrong amount, or pays when they shouldn't. Even though you are not at fault in this situation, nonetheless an overpayment has occurred. If you accidently overpaid your electric bill--you'd expect the electric company to pay you back, right? It is the same with Social Security.

Sometimes Social security is wrong about the overpayment, and you were entitled to the money after all. If that is the case, you should appeal the overpayment.

If you were, in fact, overpaid, but were not at fault AND cannot repay the money (BOTH must be true) then you can request a waiver of the overpayment.

If you were overpaid, and don't qualify for a waiver, you can always ask Social Security to set up a reasonable payment plan. They will sometimes negotiate a reduced total payback if you can pay a lump sum.

If you are in doubt about what to do, see an attorney. Many attorneys do not want to handle overpayment cases because it is difficult for the attorney to figure out a way to get paid. If you offer to pay for an hour of an attorney's time, however, and just go in for a consultation, you might be able to get some direction for your specific situtaion. There are many fine attorneys in Oklahoma who practice in the Social Security field. I encourage you to contact one of them and arrange a consultation.

Re: social security disability overpayment.

Usually, especially if the overpayment was their error, Social Security will recover an overpayment by reducing future payments by a small amount per month, unless the overpayment is small enough to make it possible to repay it in one payment. They will sometimes waive the repayment entirely if you can show that repayment will cause genuine hardship. If the overpayment was a result of fraud on the recipient's part, they will not be forgiving. Social Security could not take your real estate without a judgment from a court, which would require a trial. If the property is owned by a husband and wife as tenants by the entireties, they could not take it in any case. They could not attach your wages without a court order, either. You do not say whether the overpayment was retirement benefits or disability benefits. If they discover that someone receiving disability benefits is actually working and receiving substantial income, over about $500 per month, they will discontinue benefits and demand repayment of benefits for the period during which the person has been working. It is usually possible to negotiate a repayment schedule with Social Security, which will involve showing them what your monthly necessary expenses are so they can make a calculation of what you should be able to repay without undue hardship to you or your family.

A spouse will not be directly responsible for repayment, although in some cases Social Security may be able to collect through withholding of tax refunds from the IRS. At the time of divorce a debt to Social Security, like any other debt, may be considered a marital debt which may be factored in to a distribution of marital assets and debts. This is entirely a matter of state law and will depend on where the parties live. I would strongly advise you to consult a family law attorney in your jurisdiction on this matter.