converting from ch 13 to ch 7 questions

[freeme0215]

Hello,

What happens to a long term disability overpayment in a chapter 7?

I am on social security disability and the LTD company is demanding the overpayment of 33,000 dollars that I received from SSDI be sent to them...

I did receive from SSDI a lump sum.....

I am in a ch 13 but do to loss of income I am going for a ch 7...

I dont have the money they are demanding....what are my options and are LTD overpayments a secured or unsecured creditor?

I read where LTD overpayments were not a creditor and could not be dismissed but that since the new BK laws changed, so has the status of LTD overpayments? I just cannot seem to find the information on what filing a ch 7 with this overpayment listed as a creditor what has happened to the LTD owed?

I live in Florida

Thanks

[IamOld]

For better or worse this is standard on every group LTD contract - if SS pays, then your LTD benefit is reduced by whatever SS pays to you. If you got a lump sum from SSA, is that the same as what the LTD insurer wants? I don't know about the bk aspect to it, but this is standard "subrogation." In other words, if the ssA lump sum=LTD amount LTD insurer wants, per the LTD contract, sadly, they are "entitled" to it...