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Good record keeping gets benefits back and overpayment waived

Most of the names in these stories have been changed to protect privacy.

In January 1990, Edna Willhoit became eligible for Social Security Disability Insurance (SSDI) because of a mental disability. She worked off and on in 1995 and 1996, and again from 2000 to mid-2005.

Due to her earnings, the Social Security Administration (SSA) cut off Ms. Willhoit's SSDI benefits a charged her with a $44,395 overpayment. Ms. Willhoit filed for a waiver of the overpayment and contacted PAI (now Disability Rights California).

An advocate in the Los Angeles office helped Ms. Willhoit get an expedited reinstatement (EXR) of her SSDI benefits. After 6 months on EXR, SSA approved Ms. Willhoit’s eligibility for continued SSDI benefits.

But then SSA recouped all of Ms. Willhoit’s retroactive benefits to offset the SSDI overpayment. They also began to withhold her monthly SSDI check to recver the rest of the overpayment. After her advocate showed that taking all of Ms. Willhoit’s SSDI created a hardship, SSA agreed to give her a partial check every month.

SSA denied Ms. Willhoit’s waiver request and ruled that the overpayment was her fault. Then SSA ruled that no hardship existed because Ms. Willhoit had resources to repay the overpayment. She did have a $10,000 savings account. She also had a 4-unit apartment building from which she received $4,230 a month in rent.

Ms. Willhoit asked for a hearing with the Office of Disability Adjudication and Review (ODAR). In preparing for the hearing, the advocate asked SSA for Ms. Willhoit’s SSDI file. But no one could find her file anywhere.

Fortunately, Ms. Willhoit kept meticulous records. She had copies of notices, work activity reports, continuing disability reviews, and correspondence with SSA. At the hearing, Ms. Willhoit’s records proved that:

  • She had reported her earnings;
  • SSA knew she worked;
  • She used the money in her savings account to pay property taxes and everyday living expenses when SSA stopped her benefits;
  • The rent she received was not enough to cover the mortgage, homeowners association dues, property management and maintenance fees;
  • She owed more on the property than it was worth; and
  • The property was for sale, and she would probably have to sell it at a loss.

After hearing Ms. Willhoit’s testimony and reviewing the evidence she provided, the Administrative Law Judge waived the overpayment.