Social Security Overpayments

[mgs0987]

hi. in January 2009 my mother filed chapter 7 bankruptcy and she forgot to list a debt on her schedule for Social Security Overpayments. She received disability back in 2003-2006 and a social security investigation showed that they did not believe my mom to be disabled to the point of not being able to work so they back dated all of the payments and said she needed to pay them back. Its been an ongoing battle of appeals, phone calls, etc. Nothing resolved. So, at the time she filed bankruptcy her social security overpayment issue had not been brought up for a few years and she pretty much figured they had waived the overpayment because they were not sending any communications, etc. She forgot to mention the overpayments to her attorney at the time she filed. She received discharge in May 2009. She contacted social security just last week to advise them that she filed bankruptcy and forgot to include them and they said more or less "too bad, you still need to pay it back because you forgot". I've read online that social security overpayments ARE dischargeable in bankruptcy as long as its not a case of fraud. In which my mothers case was not fraudulent, something was just overlooked by the social security administration involving her case. She called her attorney yesterday and he said to her that social security overpayments are not dischargebale. Who is right here? I know he doesnt specialize in anything social security so I'm thinking maybe he just doesn't know the details or something...but I've read online, in books, etc that it is dischargebale. Is there anything that can be done to include this in her bankruptcy? Should she call another attorney? I'm not sure how to go about getting this resolved for her. Any information/advice would be greatly appreciated. Thanks.

[WhatMoney]

hi She forgot to mention the overpayments to her attorney at the time she filed. She received discharge in May 2009. She contacted social security just last week to advise them that she filed bankruptcy and forgot to include them and they said more or less "too bad, you still need to pay it back because you forgot".

I've read online that social security overpayments ARE dischargeable in bankruptcy as long as its not a case of fraud. In which my mothers case was not fraudulent, something was just overlooked by the social security administration involving her case. She called her attorney yesterday and he said to her that social security overpayments are not dischargebale. Who is right here? I know he doesnt specialize in anything social security so I'm thinking maybe he just doesn't know the details or something...but I've read online, in books, etc that it is dischargebale. Is there anything that can be done to include this in her bankruptcy? Should she call another attorney? I'm not sure how to go about getting this resolved for her. Any information/advice would be greatly appreciated. Thanks.

If the debt (overpayments) had been included and discharged in the BK, she would not have to pay anything back. The SSA is correct here.
See SSA regulations:
https://secure.ssa.gov/apps10/poms.n.../0202215230#a2

However this is an unsecured debt that was not included in the BK. I think it is too late for the BK. I would ask another attorney who deals with SSA challenges if there is any legal appeal (hardship case?) he could make with SSA or the court. It was an oversight but with all the appeals it should have been remembered when filing. No idea how to correct it now, a year later. Is SSA dunning your mother for the debt now? Maybe you should leave sleeping dogs lie. ("It is nought good a slepyng hound to wake" - Chaucer)