Social Security Disability benefit overpayments discharged in personal bankruptcy
Many of our clients are currently receiving benefits from the Social Security Administration because they are permanently disabled. So, what if Social Security attorney, John T. Nicholson in Centerville, Ohio, won your Social Security Appeal in downtown Dayton, Ohio, and you got more money than you should have? That is called an overpayment, and the government may attempt to collect it.
Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy will discharge your obligation to repay the government. The overpayment is treated the same as all other general unsecured debts.
There are some exceptions. You cannot discharge an obligation to repay fraudulently obtained benefits.
This is the same rule with most forms of government benefit overpayments, like Workers’ Compensation benefits (a.k.a. Workers Comp). If there was no fraud in obtaining the benefits, then you can file personal bankruptcy to discharge your obligation to repay the overpayment.
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Social Security Disability benefit overpayments can be discharged in personal bankruptcy,