Bankruptcy with a Social Security Overpayment
Hi, I have been receiving SSD for several years following an accident which severly crushed my legs. A few years and three surgeries later I started gaining enough mobility back in my legs to where I thought I might be able to work. I was told by a Social Security caseworker that I could work making as much as I wanted the first nine months. After the nine months I was allowed to make a certain amount. The worker also said that I didn't have to work straight nine months in a row. I tried several different jobs that would last a month at a time due to pain in my legs. I had proof of my earnings before taxes. S.S sent me a letter stating that I owe a huge amount in overpayments. There is no way that I can pay this back! I wish I had never been disabled. No one at the SS office gives the same answer to a question. This is all very confusing. One worker will say one thing and another will say something else. Would this be considered a dischargable debt when filing bankruptsy?
Re: Bankruptcy with a Social Security Overpayment
I understand that this type of overpayment is not dischargeable, although you can discuss your situation in detail with a bankruptcy lawyer to determine exactly what would happen in your circumstance. You may be able to work out a scheme with the Social Security Administration where your future payments are reduced by some amount until the overpayment is repaid, assuming you still qualify for benefits.
Re: Bankruptcy with a Social Security Overpayment
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Mr. Knowitall
I understand that this type of overpayment is not dischargeable, although you can discuss your situation in detail with a bankruptcy lawyer to determine exactly what would happen in your circumstance. You may be able to work out a scheme with the Social Security Administration where your future payments are reduced by some amount until the overpayment is repaid, assuming you still qualify for benefits.
Thank you for your reply! I spoke with a bankruptsy attorney this morning. He claims he has had cases where the overpayments were dischargable. If fraud isn't involved, and the judge agrees to discharge it. He wants to speak with me more about this when I take all my bills to him, so hopefully I can discharge the overpayment.
Re: Bankruptcy with a Social Security Overpayment
They are (as your lawyer said) usually dischargeable if benefits were not received fraudulently. However, in some cases, even if they are dischargeable, it's possible the benefits may be deducted from future benefit payments. I hope everything works out for you. You'll have to see what the judge says.
Re: Bankruptcy with a Social Security Overpayment
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Betty3
They are (as your lawyer said) usually dischargeable if benefits were not received fraudulently. However, in some cases, even if they are dischargeable, it's possible the benefits may be deducted from future benefit payments. I hope everything works out for you. You'll have to see what the judge says.
Thanks Betty! The reason for the overpayment is SS's failure to enter information into their computer. My wife started back to work about two months ago after being on disability since 2004. She called our local office and reported that she was working, and where. The worker assured her that the info was entered into the computer. When she went to the Social Security office yesterday, she wanted them to know that she changed jobs. The worker couldn't find anything in the computer about her even working! She was upset, she told them that she wanted a letter stateing that she let them know about her job change. She also told them, that even though they told her that she could make as much as she wanted the first nine months, and up to $900.00 after that, she wanted them to stop her check if they were going to make her pay it all back! We can't afford to do this! We try to be honest, but end up paying for it anyway!:wallbang: