SSDI overpayments are dischargeable in bankruptcy Archives - Social Security Disability | Expert Help

Recently I posted an article on this blog about working after being approved for Social Security disability. I pointed out that SSA’s “work incentive” programs are very confusing and extremely hard to navigate.

For example, SSA uses different earnings limit tables for its Trial Work Period program than it does for determining Substantial Gainful Activity.

You can have non-SGA earnings but at the same time exceed the Trial Work Period limits. In such a situation you could easily use up your Trial Work Period months and find yourself in “overpay” status very easily.

Further, since SSA does not monitor your earnings in real time, you may not find out that you are in overpay status for months or years after you cross the line. If you have received a letter from SSA stating “you have been overpaid – please send us $35,000 in the enclosed envelope within 10 days” you know what I am talking about.

You can also find yourself in overpay status if SSA has moved to terminate your benefits due to medical improvement, and you lose your appeal of the cessation action.

So, let’s assume that you have been overpaid – what can you do about it? Continue reading →

In my law practice, I handle both Social Security disability cases and consumer bankruptcy matters. As such, I regularly get calls from other attorneys and potential clients about issues where these two practice areas overlap.

One of the most common questions I get has to do with the question of whether a Social Security disability overpayment may be discharged in a bankruptcy. Overpayments occur when disability claimants continue to receive benefits even when they have returned to work or are otherwise not eligible for payment.

Often, the person receiving the payment does not know that he/she is not eligible. Social Security has a number of programs designed to encourage disabled claimants to return to work, and most of these programs provide for several months of continuing disability payments while a claimant tries to return to work. Continue reading →

Ginsberg Law Offices

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Can I Discharge my Social Security Disability Overpayment in a Bankruptcy?