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I received SS back pay and now Long term disability wants to be paid back. Can I pay them back in monthly installments?

1 Answers. Asked on Feb 16th, 2012 on Social Security Disability - Maryland
More details to this question:
While on Long term disability I was granted Social Security disability and received back pay. I used a portion of the money for bills. The long term disability company now wants to be paid back. What are my options for paying them back (small lump sum with payments, monthly payments, send money when I can etc) and the consequences of not being able to do so (will they sue me, can they demand a certain monthly amount, can they garnish my husband''s wages or my ss etc)?
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Answered on Feb 23rd, 2012 at 11:32 PM

Do you see the icon of the house in the top left corner? If you click that it will help you find a lawyer in your geographical area and find someone that works with social security disability cases or someone in contracts or insurance.

Based on what you have described, you likely will have to pay it back. In my experience, most contracts of this type, especially if the policy was paid for by your employer, you owe it according to the terms of the disability insurance policy which is a contract. If you are able to locate the first letter sent to you about your monthly benefits you were advised about this "pay back" requirement.

If you had a lawyer help you get Social Security Disability benefits, request a reduction in the amount due equal to the amount of the attorney fees and expenses paid.

Your social security benefits cannot be garnished if you follow all requirements (beginning by segregating your disability benefits and not commingling them with other assets), but you can be sued. If you have other assets, those could be subject to garnishment.

The bottom line is you will probably have to pay it back. Because you have spent a portion of it, negotiating a lump sum payment that is less than the amount due is possible, so try it. You have a tough road to hoe, and that is why I suggested at the beginning that you hire an attorney.

No attorney-client relationship has been established because of the information provided. Seek local counsel to address your particular facts. MJHJ

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Social Security Disability
If you're suffering from a disability that prevents you from working, you may be entitled to benefits under Social Security disability insurance (SSD or SSDI). Social Security disability attorneys can work with you to file your application for benefits. Because the Social Security Administration routinely denies the majority of initial claims, your SSD lawyers can also prepare for your hearing before an administrative law judge, attend all hearings, advocate on your behalf and file an appeal if your application has been denied. Hire an SSDI law firm as soon as you need to apply for SSDI. The faster your application is approved, the more quickly you will begin to receive benefits.
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