Legal Question in Bankruptcy in California
Social Security
We were in a heated discussion about Social Security. My cousin was told that if you are receiving social security and they demand a repayment, that you can file for bankruptcy.
I said no, because this is the government you are dealing with.
There are Laker tickets and 2 free dinners at stake.
2 Answers from Attorneys
Re: Social Security
I'm not sure what your question is. Are you asking whether or not social security overpayments are dischargeable in a bankruptcy case? The answer, I believe, is that "yes" they are dischargeable in a Ch. 13 case and they may be dischargeable in a Ch. 7 case depending on whether the overpayment was due to fraud or misrepresentation on your part, or whether it was due to a mistake or error by the SSA.
Re: Social Security
I believe you can. However, why would social security ask for the money back. this may determine whether or not they can get around the bankruptcy.
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