During recovery, if a person goes into debt to meet his/her ordinary and necessary
living expenses, recovery will defeat the purpose of title VIII at that time.
Anticipated financial changes may also influence a person’s ability to repay the overpayment,
but they should be expected to occur within a few months of the date of the waiver
determination, and should be verified. Examples of such changes include increases
in expenses because a child enters college, increases in income because of a return
to seasonal work or expected inheritance or a decrease in expenses because of debt
Follow procedures explained in SI 02260.040 when a change in the debtor’s financial circumstances follows waiver denial for failure
to meet defeat the purpose provisions. Such a change could support a finding of defeat
the purpose, and waiver of recovery of the outstanding overpayment amount.