Filing for Bankruptcy!
January 7th, 2008 by Questions
I need to know something,is an overpayment from the social services covered under the bankruptcy?Does he,or she,still have to pay for the overpayment,when he,or she files bankruptcy? Please I need some details,so get back to me! Thanx!
One Response to “Filing for Bankruptcy!”
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January 09, 2008 at 8:19 am, A licensed trustee said:
Yes and no.
From a legal perspective, unless the government gets a Court Order designated the overpayment as fraudulent, or if you consent to it being fraudulent, the government cannot try and recover an overpayment.
Practically speaking, most agencies will stop trying to collect during your bankruptcy, but start up again after you are discharged. The most common thing for them to do is clawback your future benefits by 20% until the debt has been recovered.