In a major policy update that brings long-overdue fairness to disability recipients, the Social Security Administration (SSA) has introduced a crucial change to how SSDI overpayments are handled. As of April 2025, SSA is now prohibited from automatically withholding more than 50% of your monthly benefit to recover past overpayments. This change was enacted following national outcry and reports revealing the harm caused by full benefit seizures, especially to low-income and disabled individuals.
Before this policy shift, SSA could reclaim 100% of a recipient’s monthly SSDI check, leaving many without enough money for food, rent, or medicine, even in cases where the overpayment wasn’t their fault. Some recipients received overpayment notices years after the fact, with no explanation or opportunity to dispute the charges.
Now, with stronger procedural protections and clearer communication guidelines in place, individuals facing overpayment claims have more time, more options, and more legal support. SSDI Overpayment Attorneys in California, like our team at Peña & Bromberg, are helping clients:
- Understand their rights under the new SSA policy
- Respond to overpayment notices with timely appeals or waiver requests
- Stop unlawful or excessive benefit deductions
If you’ve received an overpayment notice or if SSA has already started taking money from your SSDI check, you don’t have to face it alone.
What Is an SSDI Overpayment?
An SSDI overpayment happens when the Social Security Administration (SSA) determines that you received more in disability benefits than you were entitled to. Overpayments can occur for various reasons, such as failing to report work activity or other changes that may affect your eligibility in a timely manner, or choosing to continue receiving payments while appealing a decision. Because each case is unique, the SSA reviews and handles overpayments on an individual, case-by-case basis.
Many SSDI recipients are surprised to learn that overpayment notices can be issued years after the original payment, often due to SSA’s own administrative delays or clerical errors. Even if the mistake was entirely on the SSA’s end, you could still be held financially responsible unless you take formal action.
That’s why it’s essential to act quickly when you receive a notice. At Peña & Bromberg, our experienced SSDI Overpayment Attorneys in California help clients determine whether the overpayment is valid, file a timely appeal, or submit a hardship waiver request if repayment would cause financial strain.
Who Is Affected by the New Policy?
This updated SSA policy is especially important for people who have received an overpayment notice, had their entire SSDI or SSI benefit withheld to repay a debt, or are struggling to understand how to request a waiver or file an appeal. These situations are everyday and often not the fault of the claimant.
At Peña & Bromberg, our SSDI Overpayment Attorneys in California are actively helping clients in Fresno, Bakersfield, and across the Central Valley take action. Whether you’ve just received an overpayment notice or have already experienced benefit withholding, we can help you challenge the SSA’s decision, gather evidence, and submit a formal response.
We regularly assist clients in filing the correct forms, like SSA Form SSA-632 to request a waiver, and make sure appeals are submitted on time, within the critical 60-day window. If you’re unsure what step to take next or if you’re worried about losing more of your benefits, don’t wait.
How the New Overpayment Policy Works
Effective April 25, 2025, the Social Security Administration (SSA) has implemented a significant policy shift to protect recipients of SSDI and SSI benefits from severe financial hardship caused by overpayment recovery. Under the new rule, the SSA can no longer withhold more than 50% of a recipient’s monthly benefit for overpayment recovery down from the previous policy that allowed the agency to withhold 100%, often leaving individuals with no income.
This updated policy comes after widespread public backlash against the SSA’s earlier March 2025 stance, which many criticized for pushing vulnerable Americans into deeper financial crisis. The rollback aims to provide much-needed relief to those relying on Social Security for basic needs like housing, food, and medical care.
Under the revised rules, the SSA must also notify you clearly and in advance before starting any deductions, giving you time to review the overpayment notice and respond. You have the right to appeal the decision or request a waiver if the overpayment wasn’t your fault or if repaying it would cause financial hardship.
These changes are especially critical for people living paycheck to paycheck. At Peña & Bromberg, our experienced SSDI Overpayment Attorneys in California are already leveraging these new protections to challenge aggressive repayment demands and safeguard our clients’ financial well-being.
Why Choose Peña & Bromberg for SSDI Overpayment Help?
We’ve handled hundreds of overpayment disputes for claimants across California and understand the pressure these notices create. Our team of SSDI Overpayment Attorneys in California takes a comprehensive approach to protecting your benefits, starting with a full review of your SSA file. We identify discrepancies in overpayment calculations, investigate administrative errors, and challenge improper deductions or demands for repayment.
Often, overpayment letters include vague justifications or misapplied rules. We help you understand precisely why SSA is asking for repayment and whether their claim is valid. If not, we act fast to prepare and file detailed waiver or appeal documentation, ensuring you meet all required deadlines.
Whether the overpayment was due to SSA’s delay in processing a reported income change or a misclassification of your disability status, you deserve to have your side heard. And if hardship is a factor, we know how to present the strongest financial evidence to support your waiver request.
We don’t just protect your benefits, we fight to get them back and stop the stress caused by unfair government collection efforts.
Start with a Free Overpayment Consultation
If you’ve received an overpayment notice or had money withheld from your check, you don’t need to navigate the system alone. At Peña & Bromberg, we provide:
- Free legal evaluations to determine if the overpayment is accurate or challengeable
- Step-by-step guidance for filing SSA-632 or SSA-561-U2 forms for waivers or appeals
- Aggressive representation in front of the SSA to help minimize or eliminate repayment
Call (559) 439-9700 or Schedule Online