What Is an Overpayment Waiver?

An overpayment waiver is a formal request asking the agency not to collect money you were overpaid. If approved, you will not have to repay the overpaid amount. This differs from setting up a payment plan—a waiver cancels the debt entirely.

Who Qualifies for an Overpayment Waiver?

To qualify for a waiver, you must prove two things:

1. The overpayment was not your fault, and
2. Repaying it would cause financial hardship or be unfair for other reasons.

Examples of situations where you may qualify:

• You didn’t realize your income affected your benefits.
• You reported changes in income or living situation, but the agency didn’t process it in time.
• You relied on the payments in good faith and now can’t afford basic living expenses.

How to Request a Waiver

• Complete the Waiver Form
• SSA: Use Form SSA-632-BK (Request for Waiver of Overpayment Recovery).
• VA: File VA Form 5655 (Financial Status Report), often accompanied by a written waiver request.
• Provide Evidence of Financial Hardship
• Include documents like pay stubs, rent receipts, medical bills, and utility statements.
• Be honest and thorough in describing how repayment would impact your daily living.
• Submit the Form Promptly
• File your request as soon as you receive the overpayment notice.
• While your waiver is under review, you can request a stop to collections until a decision is made.

What Happens After You File a Waiver?

• The agency may request additional documentation or schedule an informal hearing.
• They’ll evaluate your financial situation and the circumstances of the overpayment.
• You’ll receive a decision by mail. If denied, you can appeal the waiver decision.