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Can long term disability company take my social security benefits from me for payment?

Durant, OK |

I was approved the first time for social security disability benefits. I was approved for September. I received the September payment in October. I sent the award letter to Guardian. Now they say I owe them over $5000.00 dollars for overpayment and they want me to send them immediate payment. I went 2 months with no payment from Guardian while they were deciding whether or not to pay me. So by the time Guardian paid me, I had to play catch up, late fees etc... I don't have any excess money. My payment from social security is 2166 a month and my bills are at least $2000.00 a month and this is not counting my expenses for travel, medications, co-pays, for my health care. How am I suppose to pay them $5000.00. I could see paying them back if I received a lump sum payment from SS.

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Attorney answers 2


Many LTD insurance contracts require that recipients apply for Social Security disability benefits. Whether the LTD insurer is entitled to repayment depends on the terms of the insurance contract. Certainly you are entitled to an explanation of the demand for and amount of any repayment requested. You may want to run the specifics by an attorney who specializes in LTD insurance issues to make sure the insurer is entitled to what it is claiming.


Social Security benefits can't be attached by or assigned to a creditor, so Guardian can't directly take a portion of your Social Security benefits. 42 U.S.C. Sec. 407. Whether your long-term care insurance can charge you with an overpayment, however, would depend on the wording of your insurance contract. Even if Guardian can charge you, they can't take any of your Social Security money to make you pay them back. I recommend consulting with an attorney who specializes in long-term care insurance, bankruptcy law, or both. Good luck.