Social Security Overpayments And Bankruptcy

Social Security Overpayments

The Social Security Administration is the agency that processes payments for disability and retirement benefits. You can imagine the vast amount of payments that are handled, both in number and amount. Do to the enormous volume of payments, sometimes mistakes are made. Often, these mistakes are actually overpayments to the recipients, usually because people continue to receive the benefit after they lose their eligibility for the benefit payment. Most times, people are not actually aware that they are being overpaid, and notify the Social Security Administration when they become aware of the overpayment. Sometimes the Social Security Administration continues to send the recipient a benefit check, with the recipient believes he or she is entitled. The recipient is often shocked when they receive a demand from the Social Security Administration for the overpayment. As a bankruptcy attorney, I am often asked, “Are Social Security Overpayments dischargeable in bankruptcy?”


Social Security Overpayments CAN be Discharged in bankruptcy

Many debts owed to the government are not dischargeable in bankruptcy, but some are. Social Security over-payments ARE dischargeable in bankruptcy. Social Security over-payments are treated like other unsecured debts. However, keep in mind that the Social Security Administration has the right to object to the discharge if it believes that you committed fraud by accepting the over-payments.

Objections based on Fraud

Debts that were incurred through fraud or by false pretenses or defalcation are not dischargeable in bankruptcy. If the Social Security Administration, or any other creditor, believes that you committed fraud they have the right to object to the discharge.

Contact Chris Wesner Law Office, LLC at 1 (937) 339-8001 for a free initial consultation to discuss this situation with a local attorney. We have offices throughout Western Ohio in Dayton, Springfield, Xenia, Troy, and Piqua to better serve your needs. Call today and get started on the road to your financial freedom.

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