Virginia bankruptcy
Can Social Security overpayments be discharged in bankruptcy?
Social Security overpayments are treated as unsecured debts and can be discharged in bankruptcy similar to credit card and medical debt eventhough they are debts owed to the government. However, if you have committed Social Security fraud, the Social Security Administration may object to your bankruptcy discharge and ask that the overpayment to Social Security be exempted from the debts that are discharged. If SSA believes you accepted payments to which you were not entitled and you knew that you should not be receiving the payments or had committed some other act of fraud on SSA, your Social Security overpayment may not be able to be discharged.
If you have received a letter from SSA demanding that you repay for Social Security overpayments, you should contact our bankruptcy lawyers for a free bankruptcy consultation to discuss whether or not the Social Security overpayment can be discharged in bankruptcy.