Steps to Set Up a Payment Plan

Step 1: Contact the Agency Promptly

Call the number listed in your overpayment notice as soon as possible. Delays could lead to automatic withholding of your full benefits.

• SSA: 1-800-772-1213
• VA: 1-800-827-0648

Step 2: Request a Payment Arrangement

Let them know you can’t pay the full amount, but you want to set up a monthly payment plan. Be ready to explain your financial situation.

Step 3: Complete a Financial Statement

You’ll likely need to fill out a form like:

• SSA Form 634 – Request for Change in Overpayment Recovery Rate
• VA Form 5655 – Financial Status Report

These forms ask about your income, expenses, and assets to determine what you can afford.

Step 4: Propose a Reasonable Monthly Amount

Offer a payment amount that is affordable for you based on your budget. In some cases, agencies may counter with a different figure.

Step 5: Await Approval

Once you submit the form, the agency will review it and notify you if your proposed plan is accepted or if adjustments are needed.

What Happens if You Don't Set Up a Plan?

Without a plan, the agency might:

• Deduct the full amount from future checks
• Send your debt to collections
• Add interest or penalties