CalWORKs Policy - Department of Public Social Services

CW 44-352.2 – Closed
Case
When will an overpayment no longer be
demanded from an individual?
An overpayment will not be demanded from any
individual who was in the AU if he/she is no longer
receiving aid. This applies only when:
The overpayment is nonfraudulent; AND
The total amount of the overpayment is less than
$35.
CW 44-352.3 -
Overpayment
Recovery from
Caretaker Relative
Can an overpayment be recovered from a
caretaker relative?
Yes. When the needy caretaker relative was a
member of the AU at the time of the overpayment,
the county must first seek recoupment from the
needy caretaker relative.
The county will continue to seek recovery from the
needy caretaker relative even when he/she:
moves to another AU; or
is no longer aided.
Can an overpayment be recovered from a nonneedy
caretaker relative who was not an aided
member of the AU?
No. When the caretaker relative was not a member
of the AU at the time of the overpayment, a recovery
can only be adjusted from the other overpaid AU
members.
EXAMPLE
A non-needy caretaker relative received aid in
October for her granddaughter who turned 18 in
July and met no other exemptions to continue
receiving aid. The granddaughter later establishes
her own case. The overpayment that occurred on
the grandmother’s case in July shall be recovered
from the granddaughter’s newly established case.
What is the effect of bankruptcy on
overpayments?
When a bankruptcy petition is filed with the court, all
debts appropriately listed by the petitioner
(participant) become non-collectable.
This includes any CalWORKs overpayments that
are listed on the bankruptcy petition. The court
sends a notice of filing directly to all listed creditors.
If the participant lists DPSS as a creditor, the notice