Submitted by Ringe on Sat, 07/02/2011 - 12:08
Posted in
I've been collecting payments from Social Security for several years and now they say that they overpaid me for all of those years and that I owe them $3,200. Well I don't have that money and I owe about $9000 on two different credit cards. If I go ahead and file for Chapter 7 bankruptcy will I be able to get the social security alleged debt discharged? I don't even know if I owe the money or not but it would be nice if I could just discharge it. Thanks.
Discharge of Social Security overpayment in bankruptcy
Depending on the circumstances under which the overpayment accrued, a Social Security overpayment is usually treated like an unsecured debt in the bankruptcy process, meaning it can be discharged. I say 'depending on the circumstances' because the bankruptcy code provides an exception to the general rule in cases where there is evidence of fraudulent behavior on the part of the recipient/debtor. In situations where the recipient/debtor accepted the overpayment "knowingly and with intent to deceive the Social Security Administration" the debt may not be discharged.
Obviously, your question does not provide all the relevant facts, and you should discuss the matter with a bankruptcy lawyer. Good luck.