Overpayment on Social Assistance
January 29th, 2022 by Anonymous
Due to a delay submitting my papers on an appeal due to a family member being sick and in hospital I was cut off my social assistance and they have given me an overpayment of $77000 to pay back but I will never be able to do this with what I make and trying to get through each month. There has been extenuating circumstance for why I was on it. I had declared bankruptcy almost 15 years ago due to an abusive situation with my ex who ran up debt in my name. If I filed bankruptcy would this be able to be included.
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January 29, 2022 at 10:26 am, Barton Goth, CIRP, BA, MBA, Licensed Insolvency Trustee said:
From the sounds of it the over payment through Social Assistance would simply be an unsecured creditor and would be cleared if you filed and completed a bankruptcy. I would encourage you to review the situation with a local Licensed Insolvency Trustee just to ensure there isn’t more to the situation than this. But as long as you were operating in good faith when you obtained the social assistance and there is no evidence to the contrary, this should be a relatively simple matter and likely could be resolved with the bankruptcy. I am not entirely sure why the previous bankruptcy was mentioned, as long as you completed it and obtained your discharge that won’t prevent you from filing again. However, a second bankruptcy is often longer and more involved than a first and has a significantly more severe impact on your credit. You may be better off looking into a consumer proposal as it will deal with the Social Assistance overpayment in a similar fashion but will allow you to avoid many of the more severe aspects of a second bankruptcy.