If a debtor's request for a lower withholding based on hardship
can be granted immediately, the FO or payment center will immediately
process the request without the involvement of OHO or the Office of Analytics,
Review, and Oversight (OARO). For more information
about hardship requests that can be immediately approved, see POMS GN 02201.044B.5.
However, if SSA cannot immediately grant the debtor's request for
a lower withholding based on hardship, OCALJ has the responsibility
to review the request.
If OCALJ mistakenly receives a hardship
request that can be immediately approved, it will return the case
to the forwarding component, citing POMS GN 02201.044.
When a hardship reduction request cannot be immediately approved,
the FO or MAMPSC-DMS is responsible for collecting all evidence
and documentation submitted by the debtor and for sending the information
to OCALJ for adjudication. Upon receipt of the file, OCALJ staff
will first ensure that the file is complete. POMS GN 02201.044B.7.b. outlines
the information that must be in the file in order for OCALJ to adjudicate
the case. If any required information is missing from the file,
OCALJ will contact the FO or MAMPSC-DMS by email to request the
missing information, noting the file must be returned for further
development if the information is not provided.
On receipt of a complete file, OCALJ will evaluate whether
to reduce the amount or percentage of FSO withholding based on financial
hardship. The OCALJ reviewing official will consider the following
factors in making a decision:
•
Financial hardship
exists when the debtor shows that withholding a particular amount from
his or her pay would deprive him or her of income necessary to meet
ordinary and necessary living expenses. “Ordinary and necessary
living expenses” include fixed expenses such as food, clothing,
housing, utilities, maintenance, insurance, tax payments, medical,
hospitalization and similar expenses, expenses for the support of
others for whom the debtor is legally responsible, and other reasonable
and necessary miscellaneous expenses that are part of the debtor's
standard of living.
•
Allegations of financial hardship are insufficient.
The debtor must provide tangible evidence to document his or her
financial resources and expenses.
•
SSA cannot reduce withholding to less than $10 per
pay period.
•
SSA will not reduce the amount of FSO withholding
if the debt was caused by the debtor's intentional false statement
or willful concealment of or failure to furnish material information.
See POMS GN
02201.044B.5. Willful concealment means an intentional, knowing,
and purposeful delay in providing or failure to furnish material
information. For more information, see POMS GN 02201.050 and GN 02201.055.
After evaluating all the evidence and statements provided
by the debtor, the reviewing official will issue a decision setting
forth the nature and origin of the debt, an analysis of the facts,
and the reviewing official's findings and conclusions regarding
the amount and validity of the debt, specifically explaining whether
the request for reduction in FSO withholding is approved or denied
based on financial hardship. If the reviewing official finds the
evidence supports a finding of financial hardship and reduction
in the withholding amount, he or she will also set forth in the
decision the new withholding amount and repayment schedule. When
OCALJ issues the findings decision, it is the final action on the
debtor's request for review. No further appeal rights exist. For
more information, see POMS GN 02201.043A.5.-6.
MAMPSC-DMS is responsible for follow up on adjudication of
FSO reviews. Therefore, once the reviewing official has approved
the decision, OCALJ staff will fax a copy of the decision to MAMPSC-DMS
at 877-311-8738.