SSDI Overpayment Problem

[shmerls]

California, Los Angeles.


My friend is having a difficult time with Soc Sec regarding paying back SSDI payments.

Due to some difficult times with a bad divorce, lack of alimony and having been a housewife without work skills, she ended up after exhausting her savings living in several women's shelters (6/03). In the last one, she was advised and assisted with applying for SSI plus saw a psychiatrist who diagnosed her as having PTSD and schizophrenia now medicated and doing well.

With the SSI, she was able to get a modest apartment (12/03) and start rebuilding her life doing temp work. She was also qualified for MediCal (California's medical assistance program) through which she receives her medication.

Since her income changed monthly, she diligently sent SS her pay stubs monthly, but was eventually told she didn't need to and stopped.

She got a full time job as fully commissioned salesperson (10/04) where she's been working since.

While still receiving SSI, someone advised her around this time to apply for SSDI because of her disabilities. She reported all her circumstances, diagnosed disability, job and income. etc. and was accepted into SSDI as of 10/1/05.

At some point prior to this acceptance she had been told that she was being over paid SSI a couple times. One time SS accepted a waiver and the other time she sent them a refund check. Then on another time SS told her she was being under paid.

On 12/10/06, SS sent her a letter that she was 3 months into their 9-month Work Trial period with 6 months left after which they would have a full review.

She called SS for clarification and the SS rep was surprised that she was on SSDI since she was working and asked her to read her the letter to which the SS rep said, "well I guess you're supposed to get it [SSDI].

She was never contacted about the review (she was still at the same address) and wrote them in 7/07 and 10/07 about it, but never heard back and continued to receive her SSDI payments until June 2009.

Around April 2009, she got a request to fill out a questionnaire about her work and income, which she did and then in May 2009 she received another letter from SS stating that they over paid her and she owed them $28,000.

She has $14,000 in savings today, which due to the current economy (she makes less sales) and her company lowering the commission rates, she is forced to use this savings to supplement her income which is at about 50% of what it used to be before the economy crashed.

If SS takes away her savings, she will have no cushion and will not be able to afford her apartment and lose it and possibly end up back in a women's shelter where this all started.

In a recent phone conversation with an SS rep about the $28,000, he told her she was sent 16 overpayment notices. Being that she hasn't moved and that she has received all her checks and other corrrespondence, how is it possible that just these 16 notices never made it to her home.

Her relationship with SS dates back 6 years during which she always told them all her circumstances completely. She has a 4" think folder of correspondence with SS and numerous phone calls plus around 4 personal meetings.

SS's actions and correspondence can only be summarized as confusing and contradictory. I have spent many hours with her and her paperwork to try to make sense of it all. Suffice it to say, SS lead her to believe she was qualified to receive SSI and then SSDI and even after many letters, pay stubs, phone calls and personal interviews insisted she was entitled to assistance certainly by their actions. Now all of sudden they are saying she isn't and worse that she has to give it all back.

Unfortunately to do that would create a terrible hardship all of which is none of her doing. While not a lawyer, it is my opinion that SS is at fault here and there has been ample time (6 years) along the way to sort this out and if required to give SS $28,000 or any portion thereof, will cause irreparable harm - not to mention that she will lose her MediCal standing and no longer be able to pay for her medication, which will be completely cruel and dangerous.

By the way, over the years she has paid taxes on the SS payments.

That being said, does she have to pay them?

[BL]

Originally Posted by shmerls

California, Los Angeles.


My friend is having a difficult time with Soc Sec regarding paying back SSDI payments.

Due to some difficult times with a bad divorce, lack of alimony and having been a housewife without work skills, she ended up after exhausting her savings living in several women's shelters (6/03). In the last one, she was advised and assisted with applying for SSI plus saw a psychiatrist who diagnosed her as having PTSD and schizophrenia now medicated and doing well.

With the SSI, she was able to get a modest apartment (12/03) and start rebuilding her life doing temp work. She was also qualified for MediCal (California's medical assistance program) through which she receives her medication.

Since her income changed monthly, she diligently sent SS her pay stubs monthly, but was eventually told she didn't need to and stopped.

She got a full time job as fully commissioned salesperson (10/04) where she's been working since.

While still receiving SSI, someone advised her around this time to apply for SSDI because of her disabilities. She reported all her circumstances, diagnosed disability, job and income. etc. and was accepted into SSDI as of 10/1/05.

At some point prior to this acceptance she had been told that she was being over paid SSI a couple times. One time SS accepted a waiver and the other time she sent them a refund check. Then on another time SS told her she was being under paid.

She has $14,000 in savings today, which due to the current economy (she makes less sales) and her company lowering the commission rates, she is forced to use this savings to supplement her income which is at about 50% of what it used to be before the economy crashed.

If SS takes away her savings, she will have no cushion and will not be able to afford her apartment and lose it and possibly end up back in a women's shelter where this all started.

In a recent phone conversation with an SS rep about the $28,000, he told her she was sent 16 overpayment notices. Being that she hasn't moved and that she has received all her checks and other corrrespondence, how is it possible that just these 16 notices never made it to her home.

Her relationship with SS dates back 6 years during which she always told them all her circumstances completely. She has a 4" think folder of correspondence with SS and numerous phone calls plus around 4 personal meetings.

SS's actions and correspondence can only be summarized as confusing and contradictory. I have spent many hours with her and her paperwork to try to make sense of it all. Suffice it to say, SS lead her to believe she was qualified to receive SSI and then SSDI and even after many letters, pay stubs, phone calls and personal interviews insisted she was entitled to assistance certainly by their actions. Now all of sudden they are saying she isn't and worse that she has to give it all back.

Unfortunately to do that would create a terrible hardship all of which is none of her doing. While not a lawyer, it is my opinion that SS is at fault here and there has been ample time (6 years) along the way to sort this out and if required to give SS $28,000 or any portion thereof, will cause irreparable harm - not to mention that she will lose her MediCal standing and no longer be able to pay for her medication, which will be completely cruel and dangerous.

By the way, over the years she has paid taxes on the SS payments.

That being said, does she have to pay them?

Most likely .

She had a time window to appeal .

Appeals come in 3 separate processes .

One can chose which one they want to do .

Also , knowing that the trial to work period would end in 6 months , your Friend should have been pro-active , knowing non entitlement of benefits could occur due to earnings .

I'm sure there were paperwork sent for trial to work program - the details ,etc.

A payment plan may work .

If not pro-active in working something out ,they may take more at a time .

She could consult an SSI Attorney in her local area .

BTW how you feel does not matter ,and your helping or misguided advice may have hurt your Friend .

[shmerls]

Originally Posted by BL

BTW how you feel does not matter ,and your helping or misguided advice may have hurt your Friend .

That was harsh. I'm just getting involved now after the fact. I had no part in her applying for or getting the gov't assistance. Contrary to your assumptions, my advise has been strongly to get help, hire an attorney and get it taken care of FAST. I'm not sure what lead you to believe I was misguiding her. And I know my feelings have no bearing on the law, which is why I posted here. Hoping to get some insight as I have no experience in this area, in addition to looking for a lawyer locally, which she is doing and she has appointments with 2 this week. Regardless, I didn't expect an inappropriate, unfounded, presumptuous scolding. Shame on you. This thread is closed.