Legal Question in Credit and Debt Law in Virginia
Retirement pension overpayment
In 2008 My mother received retirement pension distribution about $ 20,000. During the process of this pension distribution, we talked to an agent numerous times to verify if she was entitled to receive the distribution. They stated it was correct and she was entitled to receive the distribution. The fund was accumulated while she was working as a part-time after her retirement. As result, she was issued 1099-R for 2008 to file income tax return. She did file the return and paid income tax.
Recently, she received a letter stating the distribution was made due to an error and was asked to return the money. How should she handle this? She spent the entire money and don�t have the money to pay back. She is living on fixed retirement income and doesn�t have money to pay lump sum $20,000.
1 Answer from Attorneys
Re: Retirement pension overpayment
If your mother doesn't make arrangements to pay back this erroneous overpayment (by installments if necessary), those to whom it is owed(or their agents) will likely take whatever action is necessary to attach whatever of your mother's assets they can lay their hands on after obtaining a judgement against her. (But, of course, if she is as a practical matter judgment proof, their efforts to collect will likely be in vain.)
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
