OVERPAYMENTS

1. 1 OVERPAYMENTS Basic Benefits Training Disability Law Center November 2011

2. 2 WHAT IS AN OVERPAYMENT? An overpayment is the total amount an individual received for any period which exceeds the total amount which should have been paid for that period. Once a determination of overpayment is made, the overpaid amount is a debt owed to the United States Government. GN 02201.001; 20 CFR �� 404.501(a); 416.537, 416.538. There are three elements in the definition of overpayment: Payment was made;Over a period of time (at least 1 month); andMore than the correct amount was paid. SI 02201.005 There are three elements in the definition of overpayment: Payment was made; Over a period of time (at least 1 month); and More than the correct amount was paid.There are three elements in the definition of overpayment: Payment was made;Over a period of time (at least 1 month); andMore than the correct amount was paid. SI 02201.005 There are three elements in the definition of overpayment: Payment was made; Over a period of time (at least 1 month); and More than the correct amount was paid.

3. 3 WHAT IS NOT AN OVERPAYMENT ? Presumptive disability or blindness payments which would have been correct if the disability or blindness determination would have been favorable. However, if nondisability factors (excess income, SGA, resources, L/A) cause the presumptive payments to be incorrect, an overpayment results. Forged checks. Collection of improperly negotiated checks is under the jurisdiction of the United States Treasury Department. Payments due the recipient but misused by a representative payee. SI 02201.010

4. 4 HOW DO OVERPAYMENTS HAPPEN? Earned income not reported or not entered into SSA system Fluctuations in countable earned income SSI excess resources SSI living arrangement changes SSDI work related cessations (SGA) SSDI medical cessations

5. 5 LIABILITY FOR OVERPAYMENTS Current/former SSI/SSDI recipients Auxiliaries (spouse, child eligible on the same earnings record) 20 CFR � 404.502 Representative Payees Alien�s Sponsors Estate of a Deceased Recipient or Spouse The determination of liability for repayment is an �initial determination� subject to appeal. SI 02201.005 A sponsor is �jointly and severally liable� with the alien for the repayment of any SSI overpayment made to the alien during the 3-year period after her admission for permanent residence in the United States that resulted from the sponsor's failure to provide correct information regarding her own income and resources and the income and resources of her living with spouse, if any. Find good causewith respect to the sponsor to exist when the failure to supply correct information was not willful. SI 02205.001 A sponsor is �jointly and severally liable� with the alien for the repayment of any SSI overpayment made to the alien during the 3-year period after her admission for permanent residence in the United States that resulted from the sponsor's failure to provide correct information regarding her own income and resources and the income and resources of her living with spouse, if any. Find good causewith respect to the sponsor to exist when the failure to supply correct information was not willful. SI 02205.001

6. 6 LIABILITY FOR OVERPAYMENT-REPRESENTATIVE PAYEE SSA will attempt recovery from: The individual if the overpaid funds were used for her support and maintenance and the rep payee was not aware of the facts causing the overpayment. The representative payee if the overpaid funds were not used for the overpaid individual's S and M. The rep payee is personally liable for repayment of any misused funds. Both the individual and the payee if the overpaid funds were used for the overpaid individual's S and M and the rep payee was aware of the facts causing the overpayment. A representative payee may use a recipient's properly conserved funds to repay an overpayment only if: The overpaid recipient is liable for the repayment of the overpayment; and You have not waived recovery of the overpayment with respect to the overpaid recipient. The representative payee cannot use dedicated account funds to repay an overpayment. SI 02201.023 A representative payee may use a recipient's properly conserved funds to repay an overpayment only if: The overpaid recipient is liable for the repayment of the overpayment; and You have not waived recovery of the overpayment with respect to the overpaid recipient. The representative payee cannot use dedicated account funds to repay an overpayment. SI 02201.023

7. 7 LIABILITY OF A SPOUSE FOR SSI OVERPAYMENTS If incorrect payments were received for the same period by an individual and eligible spouse, each is individually responsible for repayment of his/her own overpayment as well as for the other member's overpayment. SI 02201.022 Even if the members of a couple are no longer eligible as a couple, each remains responsible. SSA will recover against an eligible spouse for the eligible individual's overpayment only if: The eligible spouse was a member of the eligible couple when the overpayment occurred; The eligible spouse and eligible individual were living together when the overpayment occurred; and Recovery from the eligible individual is not possible. SI 02201.005

8. 8 OVERPAYMENT NOTICE Clear language. Mailed (with SSA-3105) at least 30 days before recoupment starts. Reason for the overpayment Period of the alleged overpayment Repayment options Appeal rights 20 CFR �� 404.502a, 416.558;GN 02201.009, SI 02220.010 An overpayment does not exist until the initial notice of overpayment is released. SI 02201.025 The overpayment resolution is an ongoing continuous process that ends through 1)Recovery (through refund, adjustment of payments, or installment payments); Waiver; A determination that the debt either did not exist, or is uncollectible. SI 02201.005 An overpayment period begins with the first month for which there is a difference between the amount paid and the amount due. It ends with the month we notify the overpaid individual. SSA delays notification when it suspects that fraud caused the overpayment. Many overpayment notices are systems-generated through the Automated Overpayment Notice System (AONS) and are recorded on the system. Most nonpayment status cases are under the Recovery and Collection of Overpayments Process (RECOOP). The overpayment resolution is an ongoing continuous process that ends through 1)Recovery (through refund, adjustment of payments, or installment payments); Waiver; A determination that the debt either did not exist, or is uncollectible. SI 02201.005 An overpayment period begins with the first month for which there is a difference between the amount paid and the amount due. It ends with the month we notify the overpaid individual. SSA delays notification when it suspects that fraud caused the overpayment. Many overpayment notices are systems-generated through the Automated Overpayment Notice System (AONS) and are recorded on the system. Most nonpayment status cases are under the Recovery and Collection of Overpayments Process (RECOOP).

9. 9 PRE-RECOUPMENT REVIEW The overpaid person must have the opportunity to contest the overpayment determination. There should be no recovery until 60 days after SSA notifies the overpaid person. Recovery must stop if a reconsideration or waiver is filed. GN 02201.011

10. 10 AVAILABLE PROCEDURES Appeal (Reconsideration Request)-Form SSA-561-U2 Waiver-Form SSA-632-BK BOTH

11. 11 RECONSIDERATION Challenges the fact/amount of the overpayment. Same appeal steps as with application denials. Must be in writing & filed within 60 days of receipt of the notice (+ 5 days for mailing). Good cause for late filing provisions apply. 20 CFR �� 404.909; 416.1409; GN 03101.020

12. 12 �GOOD CAUSE� FOR FILING RECONSIDERATION LATE Circumstances that explain late filing: SSA or CMS actions were confusing or misleading; the claimant did not understand the legal requirements; and the claimant�s physical, mental, educational, or linguistic limitations prevented timely filing. �unusual or unavoidable circumstances.� 20 CFR 404.911; 416.1411; GN 03101.020

13. 13 NO RECOUPMENT DURING RECONSIDERATION SSA can not start recoupment if a Recon Request is filed within 30 days. Recoupment must stop once a Recon Request has been filed and must not start again until the initial decision. SSA should refund improperly recouped benefits. 20 CFR �� 404.502a (h); 416.575(b); GN 02201.025, SI 02220.017

14. 14 Termination, Suspension or Reduction of Benefits + Overpayment 2 separate cases 2 separate appeals required Right to aid pending appeal of termination, suspension or reduction of benefits. GN 12027.010-Statuory Benefits Continuation

15. 15 WAIVER REQUEST An overpaid individual agrees with the fact/amount of the overpayment but asks to waive repayment. No deadline for filing. If filed within 30 days of receipt of notice, recoupment can�t begin until initial waiver decision. 20 CFR �� 404.506; 416.575(d) If SSA started recoupment when a waiver is filed, the waiver will NOT cover benefits already repaid unless the waiver specifically covers the entire overpayment (the person must show that s/he went into debt to repay part of the overpayment).

16. 16 NO RECOUPMENT WHILE WAIVER IS PENDING Recoupment must stop once a waiver request is filed and cannot resume until the initial waiver decision. SSA should refund improperly recouped benefits. Prerecoupment review. Right to a personal conference face-to-face, by telephone, of video conference. 20 CFR �� 404.506; 416.557(a); GN 02201.011, SI 02260.001, SI 02260.006.

17. 17 PERSONAL CONFERENCE File review at any time in the waiver process (no later than 5 days before the conference). GN 02250.002 �Prior to the conference, the person has the right to review anything having to do with the overpayment that is in the claims folder or is stored electronically as well as applicable law and regulations with the decision maker or an SSA representative who is prepared to answer questions.� GN 02270.009 Personal appearance with or without a representative to testify, cross-examine and submit documents; De novo review. 20 CFR �� 404.506; 416.557; GN 02270.005

18. 18 PROCESSING A WAIVER REQUEST SSDI cases: An ALJ hearing is the next level of appeal after a personal conference. If there was no personal conference, a Reconsideration (of waiver denial) is the next level of appeal. 20 CFR �� 404.506 (h), 404.907, 404.930(a)(6). GN 02250.380 SSI cases: Appeal is a Reconsideration whether or not there is personal conference. 20 CFR 416.557 (f), 416.1413; SI 02260.006B.7

19. 19 WAIVER-WHEN APPLICABLE Recipient is without fault in causing OP, AND Adjustment or recovery would either: �Defeat the purpose� of the Social Security Act, OR Be �against equity and good conscience,� or �Impede effective administration of Social Security Act� because of the amount involved. 20 CFR �� 404.506 (a), 416.550. GN 02250.001; SI 02260.001.

20. 20 WHEN SSA WILL FIND FAULT An overpaid SSI/SSDI recipient: Failed to furnish information which s/he knew or should have known was material; or Made incorrect statements which s/he knew or should have known were incorrect, or Did not return a payment which s/he knew or could have been expected to know was incorrect. 20 CFR �� 404.507, 416.552

21. 21 WHAT SSA MUST CONSIDER WHEN DETERMINING �WITHOUT FAULT� Any physical, mental, educational or linguistic limitations, understanding of the reporting requirements and efforts to report, understanding of the obligation to return payments not due, ability to recognize inconsistencies and evaluate the reasonableness of SSA's actions, experience in dealing with government agencies. understanding of the language used by SSA, misleading information from SSA . 20 CFR �� 404.507, 416.552

22. 22 �WITHOUT FAULT� DETERMINATION SSA�s fault in causing the overpayment, alone, does NOT relieve an overpaid beneficiary of fault. If the evidence clearly shows the individual did not understand and comply with reporting responsibilities, that individual can usually be found without fault. Resolve any doubt in favor of the individual. GN 02250.005 20 CFR �� 404.507; 416.552; SI 02260.010, SI 02260.015

23. 23 WHEN SSA WILL FIND �FAULT� An overpaid beneficiary is at fault in causing the overpayment if the evidence shows a lack of good faith or failure to exercise a high degree of care in determining whether to report an event that might cause deductions or termination of entitlement. The degree of care varies with the complexity of the circumstances giving rise to the overpayment and the capacity of the beneficiary to realize that s/he is being overpaid. 20 CFR � 404.510

24. 24 WHEN SSA PRESUMES LACK OF � FAULT� An overpaid beneficiary reasonably believed that only take-home (net) pay is included to determine SGA; GN 02250.060 Relied upon erroneous information from SSA. GN 02250.061 Unaware that earnings were above SGA due to retroactive pay increase, work at a higher rate than realized; GN 02250.065 Good faith belief that checks were proper after SSA was informed of the SGA earnings. GN 02250.066 20 CFR 404.510

25. 25 ERRONEOUS INFOMRATION FROM SSA An overpaid beneficiary may be assumed to be without fault if the person relied upon erroneous information from an official source within SSA with respect to the interpretation of a pertinent provision of the Act or regulations. 20 CFR 404.510a

26. 26 OVERPAYMENT AS A RESULT OF INCORRECT BENEFIT RATE OR LACK OF INSURED STATUS A person cannot be charged with knowledge of how benefit rates are computed. When the error results in a payments clearly out of line with what could have reasonably been expected, without fault can be established only if there is clear and convincing evidence. GN 02250.020 A person is without fault if an overpayment occurs due to an error in computing insured status. If an earnings record is fraudulent (whether or not the fraud was committed for the purpose of obtaining benefits), a finding of without fault cannot be made unless it is clear that the person was not involved in the fraud. GN 02250.022

27. 27 HOW TO PROVE �NO FAULT�? Education and work history Mental/physical capacity, ability to understand/ comply with SSA rules Ability to understand/respond to SSA notices Prior experience with similar issues What does the individual recall being told about reporting responsibilities during the application, redeterminations and prior requests for reconsideration or waiver of an overpayment?

28. 28 HOW TO PROVE �NO FAULT�? Did the individual receive any written reporting instructions at the time of initial application? How many redeterminations has the person had and/or has the person been eligible for SSI more than once? Is the change that caused the overpayment the one that normally would have been covered during a discussion of reporting requirements or is it a unique occurrence? Could a reasonable person conclude that the change was so insignificant as not to affect payment amount or eligibility?

29. 29 WHEN COLLECTING OVERPAYMENT WILL �DEFEAT THE PURPOSE OF THE ACT� ? The issue is ability to repay. If SSI or other public assistance benefits involved, SSA presumes that recovery of the overpayment will �defeat the purposes of the Act�. 20 CFR �� 416.553 Food stamps, State medical assistance, unemployment benefits and workers' compensation are not public assistance. GN 02250.110 For others, SSA must consider a monthly budget picture, all household finances. 20 CFR �� 404.508 �

30. 30 INABILITY TO REPAY THE OVERPAYMENT SSA will find inability to repay if an overpaid beneficiary uses substantially all of monthly income to meet �ordinary and necessary living expenses� (food, clothing, rent, utilities, medical bills, expenses for support of others) GN 02250.100 Assets cannot exceed $3,000 for an individual or $5,000 for an individual and one dependent (+$600 for each additional dependent) GN 02250.115 If an overpaid beneficiary retains any of the overpaid funds, recovery will not defeat the purposes of the act. 20 CFR �� 404.508; 416.553; SI 02260.020.

31. 31 WHEN OVERPAYMENT COLLECTION WILL �DEFEAT THE PURPOSE OF THE SS ACT�? The individual�s current total income does not exceed: The Federal Benefit Rate (FBR); plus The $20 general income exclusion; plus The $65 earned income exclusion; plus The federally administered State supplementary level. In SSI overpayment cases SSA uses only that portion of the income of the spouse, parent or essential person which is deemed for computation purposes to determine the individual�s income. SI 02260.020

32. 32 ACCEPTABLE EXPENSES TO EVALUATE ABILITY TO REPAY No rigid restrictions on acceptable expenses. Do not allow unlimited amounts for necessities or exclude nonessential expenses (entertainment). Allow such expenses as are consistent with the person's standard of living but do not allow extraordinary and unnecessary expenses regardless of the person's standard of living. �Do not allow expenses that help a person maintain a luxurious standard of living that developed as the result of the incorrect payments.� Fully document and explain any unusual individual circumstances. GN 02250.120

33. 33 �AGAINST EQUITY AND GOOD CONSCIENCE� An overpaid beneficiary relinquished a valuable right or changed position for the worse in reliance on SSDI/SSI payments or an overpaid beneficiary lived in a separate household from the overpaid person at the time of the overpayment and did not receive the overpayment. GN 02250.150 Against equity is presumed if there was: Misunderstanding about gross vs. take-home pay. GN 02250.060 Reliance on misinformation from an official source. GN 02250.061 Earnings prior to the first month of entitlement. GN 02250.064

34. 34 �AGAINST EQUITY AND GOOD CONSCIENCE� Groseclose v. Bowen, 809 F.2d 502 (8th cir. 1987) expanded the notion of against equity and good conscience. Adopted in 20 CFR � 404.509 Financial circumstances are not material. 20 CFR �� 416.554; SI 02260.025, GN 02250.150, GN 02250.160.

35. 35 ADMINISTRATIVE TOLERANCE An overpaid individual is without fault and has an overpayment $1,000.01 or less, SSA will not recoup the overpaid benefits. Can be applied to subsequent overpayments (each overpayment counted separately). 20 CFR � 416.555; SI 02260.030 If an overpayment results from excess resources of $50 or less, and no indications of fault, waiver granted, even if not requested. This only works once. 20 CFR � 416.555; SI 02260.035

36. 36 OVERPAYMENT RECOVERY Refund-overpayment is paid in one or several monthly installments. 20 CFR 416.560 Adjustment- SSA deducts money from the monthly benefit check until the overpayment is repaid. 20 CFR �� 404.515; 416.570

37. 37 10 YEAR BAR TO ADJUSTMENT OF RECOVERY Recovery by adjustment is barred more than 10 years after a debt accrues when the means to collect by benefit withholding was available but no recovery efforts were initiated. The bar applies to the debt not the debtor. Barring recovery of one debt under the 10-year rule does not relieve the debtor of other debts. The 10-year bar does not apply when: Cross-program recovery is involved or an unresolved protest or appeal is the cause of SSA's inaction. GN 02210.003; HHS Regulation, 45 C.F.R., Section 30.12(a)(4)

38. 38 OVERPAYMENT RECOVERY FROM SSI RECIPIENTS Recoupment is limited to the lesser of total monthly SSI or 10 % of the total monthly income (SSI with state supplement and countable income) 20 CFR � 416.571 Where the overpaid beneficiary cannot meet �current ordinary and necessary living expenses� recoupment may be reduced to less than 10 %, and may be as little as $1/month. 20 C.F.R. � 416.571

39. 39 OVERPAYMENT RECOVERY FROM SSDI RECIEPIENTS SSA can recover 100% of the monthly benefit. Any part of a title II benefit needed to repay SMI premiums will be applied to the premium obligation (including any arrearage) before any withholding to recover an overpayment. This partial adjustment for SMI is effectuated without the need for a protest from the beneficiary or a decision that full withholding is causing hardship. GN 02210.070 When there is no waiver request, SSA will consider a different rate of withholding only at the debtor's request. The installment amount should bear reasonable relationship to the amount owed but should not be less than $10.00 per month for both title II and title XVI debts. GN 02210.214

40. 40 OVERPAYMENT RECOVERY FROM SSDI RECIPIENTS A rate of withholding which would permit full recovery within 12 months or 36 months SSA will grant, without financial development, any request that is at least $10 and would permit recovery within 12 months. If the debtor is receiving another type of cash public assistance (VA service benefits,TANF) SSA should withhold at the rate requested but no less than $10. If a negotiated/requested rate would not permit recovery within 36 months but the debtor has a 100% Medicare Part D subsidy, SSA must grant, without financial development, any request that is at least $10. GN 02210.030

41. 41 RATE OF WITHHOLDING The decision as to the amount of withholding is not subject to appeal. If waiver denied because recovery would not cause hardship, SSA will limit withholding to the difference between income and expenses. EXAMPLE: A person is without fault in causing a $7500 overpayment but waiver is denied because the debtor can afford to repay $65 a month without financial hardship. Withholding is limited to $65 monthly. To request lower payments, use the budget portion of the Request for Waiver form to show hardship. GN 02210.030

42. 42 OVERPAYMENT RECOVERY FROM SSDI+SSI RECIEPIENTS When a person receives SSDI and SSI, only 10 % of the title II monthly benefit credited (the MBC) will be withheld to recover the title II overpayment. The 10% withholding rate will apply in concurrent claims unless the overpaid person specifically requests a greater (or lesser) rate of withholding. GN 02210.045 The rate of adjustment of payment to recover SSI overpayments will be the lesser of: 10% of the recipient's total monthly income (countable income plus SSI and State supplementary payment); or The recipient's entire monthly benefit. SI 02220.016

43. 43 WHEN SSA HAS ATUHORITY TO SETTLE AN OVERPAYMENT  The individual is unable (or unwilling) to repay the full amount of the debt within a reasonable time; or The debtor is unwilling to repay the full debt and enforced collection is unavailable or is likely to exceed the amount recovered (i.e., the difference between the overpayment and the amount offered as a compromise is less than $1,000); or There is real doubt concerning the Government�s ability to prove its case in court for the full amount claimed, either because of legal issues involved or a bona fide dispute as to the facts. GN 02215.100

44. 44 COMPROMISE SETTLEMENT SSA does not have authority to compromise if the overpayment is in excess of $100,000 (DOJ will make the decision) or if the fraud was involved. An offer which is 80% of the debt amount will always be accepted if SSA has the authority to compromise. GN 02215.105 If 80% repayment is offered and the overpayment is $20,000 or less, an operations supervisor has authority to accept the settlement. A higher authority is needed to settle a higher OP. Finances not considered if there is a compromise settlement. 20 CFR � 404.515; SI 02220.030; GN 02215.100

45. 45 OTHER RECOVERY OPTIONS Offset of Federal Tax Refunds. 20 CFR 404.526; 416.580 - .586; GN 02201.030 -.031, SI 02220.012. Administrative Wage Garnishment. 20 C.F.R. 404.527; 416.590, 422.401 - .445. Administrative Offset through the Treasury Offset Program (TOP) 20 CFR 422.310 Private collection agencies Credit Reporting 20 CFR 422.305

46. 46 CRITERIA FOR TREASURY REFUND OFFSET (TRO) The debtor is alive; The debtor is not entitled to benefits; The debtor was 18 years or older when the debt was established on SSA's records; The debtor's BOAN (TIN) is on the MBR; The debt is $25 or more; The debtor is not making regular installment payments, or efforts to recover the debt have terminated; The debt is past-due, and legally enforceable. GN 02201.030; SI 02220.012 Selection for TRO is made each week by the system from ROAR, the MBR and Numident records.Selection for TRO is made each week by the system from ROAR, the MBR and Numident records.

47. 47 INFORMATION IN THE TRO-PRE-OFFSET NOTICE Amount of delinquent overpayment debt; SSA plans to refer the debt to Treasury for TRO and/or send information about the debt to credit bureaus after 60 days have expired from the date on the notice; SSA will not take this action if, before the end of that 60-day period, the debtor pays the debt in full, makes regular installment payments, requests waiver, or furnishes evidence showing that s/he does not owe all or part of the stated amount or SSA does not have the right to collect the debt; and The debtor may review and copy SSA's records about the debt. GN 02201.030

48. 48 TRO-LEGALLY ENFORCEABLE DEBT It has not been paid in full and recovery has not been waived; and A bankruptcy petition is not currently pending in court and the debt was not previously discharged in bankruptcy; and The debtor is alive; and The debtor is primarily liable for the debt. GN 02201.030

49. 49 SELECTION OF DEBT FOR CREDIT REPORTING The debt must have been paid to a person who was age 18 or older; The debt must be considered to be �unrecoverable�; The debt must be owed by a person who is no longer entitled to receive Social Security benefits or SSI; The debtor must be alive; The debtor's BOAN (TIN) must be on the MBR, The debt must be $25.00 or more and delinquent for no more than 6 years and 6 months SI 02220.014 Sosa's automated systems select certain delinquent title II debts for credit bureau reporting.Sosa's automated systems select certain delinquent title II debts for credit bureau reporting.

50. 50 ADMINISTRATIVE WAGE GARNISHMENT The debtor is alive and not entitled to Title II/ XVI benefits/Medicare based on disability/not using the Ticket to Work , and The debt of $200 or more was established after age 18, and is past-due, and legally enforceable ( GN 02201.030C), and The debtor has regular wages, and The debtor was not involuntarily separated from employment or, if he was, has been re-employed continuously for at least 12 months, and No installment payment arrangements exist with SSA, or if one has been made, the debtor failed to make a payment for two consecutive months, and No waiver or appeal is pending, and cross Program Recovery is not available. GN 02201.040

51. 51 ADMINISTRATIVE WAGE GARNISHMENT The SSA decision to use AWG to collect an overpayment debt is not subject to appeal. Individuals may still request reconsideration of the overpayment determination. Since cases selected for AWG are by definition beyond the 60-day period for requesting reconsideration of the debt, the person must prove good cause for late filing. SI 02220.013

52. 52 AWG DUE PROCESS RIGHTS-60 DAYS NOTICE Review of the Debt. There must be no evidence in the record or furnished by the debtor to show that the debtor does not owe the debt or does not owe it in the amount claimed by SSA or SSA is precluded from collecting it. IMPORTANT: The AWG request for review is not the same as a request for reconsideration of the fact/amount of the overpayment determination. No additional appeal rights exist. Request a Lower AWG Amount Due to Financial Hardship due to materially changed circumstances such as disability, divorce, or catastrophic illness. SSA will not reduce the AWG amount if the overpayment resulted from fraud, an intentional false statement or willful concealment of, or failure to furnish, material information. Inspect and Copy SSA Records About the Debt

53. 53 FRAUD ISSUES An overpaid beneficiary will be found at fault A representative payee will have to repay the overpaid benefits SSA can refer overpayment cases to the Inspector General

54. 54 LIMITATIONS ON FILING A CIVIL SUIT TO COLLECT OVERPAYMENTS No question as to the fact or amount of a debt. The debtor's age, mental condition or physical condition To ensure that civil suit is not barred by SOL, the complaint must be filed within: 6 years after the right of action accrues (i.e., within 6 years after the time an overpayment determination has been made); or 1 year after a final decision has been rendered in an administrative proceeding, whichever is later. The above time limitation will be extended if facts material to the right of action (a. above) are not and could not reasonably have been known by SSA. GN 02215.150

55. 55 BANKRUPTCY The filing of a bankruptcy petition results in an automatic stay of collection activity with respect to the debtor and any minor child or legally incompetent adult child with the debtor as the representative payee and any contingently liable person. The bankruptcy judgment is binding on SSA, with any repayment limited to the terms of the bankruptcy order. SSA is subject to contempt citations if collection efforts occur after bankruptcy notification. GN 02215.190; SI 02220.040

56. 56 BANKRUPTCY UNDER CHAPTER 7 Applies to all existing debts whether or not specifically included in the petition. A debt exists if the payments comprising that debt were made prior to the bankruptcy filing date (i.e., a pre-petition debt). It is not necessary for the debt to be identified in the petition or for the debt to have been identified by SSA. If the bankruptcy court issues a discharge order, it will generally discharge all debts that arose prior to date of filing of the bankruptcy petition. If the debtor did not list SSA as a creditor in the bankruptcy petition, in a �no assets� case, such unlisted debts are discharged. In cases where the debtor did have assets to distribute to creditors, unlisted debts are only discharged if the creditor received actual notice of the bankruptcy in time to file a proof of claim. GN 02215.230

57. 57 BANKRUPTCY UNDER CHAPTER 13 Applies to only those debts specifically included in the petition. However, at the time of filing the petition, the automatic stay applies to all debts that arose before the filing of the petition not just those listed in the petition. GN 02215.185

58. 58 SECOND WAIVER REQUEST FOR THE SAME OVERPAYMENT Possible if the claimant was denied a waiver based on ability to repay. A final determination that the claimant was at fault is res judicata, in the absence of grounds to reopen. However, inability to repay is �current� ability to repay and SSA can consider changed circumstances. GN 02250.385

59. 59 SUBSEQUENT OVERPAYMENTS Once an individual is advised of the correct interpretation of a provision, s/he will be found at fault for any subsequent overpayments involving the same provision. GN 02250.026

60. 60 HOW TO AVOID OVERPAYMENTS Timely report anything that may affect eligibility/benefit amount Keep copies of SSA notices/documents submitted to SSA Know your rights and obligations Contact Benefits Planners if planning to work