social security chargeback

[Zurdo]

hello,

I had been collecting dissability from social security since 1994. Recently I received a letter from them charging back $67 thousand dollars for overpayment because I exceeded my earning/employment requirements.

Clearly, at my age of 57 and with my dissability, I cannot pay this back.

I consulted a Ch.7 bankruptcy attorney and he stated that social security cannot be discharged because "they (SS) will protest". Social Security is now threatening to attach themselves to my paycheck, which pays my rent, utilities, insurance, and all other personal expenses like groceries, gasoline,
etc.

I am also going though a foreclosure for a rental home which I had to abandon because I have not been able to rent it, sell it, or make the payments.

I have decided Chapter 7 is the only solution, but even discharging my debt, I cannot foressee paying back the amount of $67 thousand dollars.

What can I do?

many thanks for any help,
Minnie

 

[Proserpina]

hello,

I had been collecting dissability from social security since 1994. Recently I received a letter from them charging back $67 thousand dollars for overpayment because I exceeded my earning/employment requirements.

Clearly, at my age of 57 and with my dissability, I cannot pay this back.

I consulted a Ch.7 bankruptcy attorney and he stated that social security cannot be discharged because "they (SS) will protest". Social Security is now threatening to attach themselves to my paycheck, which pays my rent, utilities, insurance, and all other personal expenses like groceries, gasoline,
etc.

I am also going though a foreclosure for a rental home which I had to abandon because I have not been able to rent it, sell it, or make the payments.

I have decided Chapter 7 is the only solution, but even discharging my debt, I cannot foressee paying back the amount of $67 thousand dollars.

What can I do?

many thanks for any help,
Minnie

Frankly you're fortunate that criminal charges have not been attached due to the amount involved but that aside if you file Ch 7 you will certainly be able to discharge your other debts which would perhaps free up your income so you can start to repay the SS debt. Whether or not the SS debt is dischargeable will usually depend on whether it was obtained fraudulently or not but given the amount, and the time period involved I don't rate your chances too highly at all. By all means get another consult with a different attorney and see what they say.



Are you receiving SSI or SSDI? It DOES make a difference.

 

[Zurdo]

ss chargeback

thank you.

no, I am no longer receiving SSI or SSDI. How does it make a difference?

certainly my benefits were not obtained fraudently and I still have the same dissability.

what type of attorney specializes in these cases? I have asked a few and all they want is claim denial cases.

Am I the first in this ?

 

[Proserpina]

thank you.

no, I am no longer receiving SSI or SSDI. How does it make a difference?

certainly my benefits were not obtained fraudently and I still have the same dissability.

what type of attorney specializes in these cases? I have asked a few and all they want is claim denial cases.

Am I the first in this ?

You need to speak first with another bankruptcy attorney for a second opinion, preferably one who is familiar with government debts - because of the nature of the debt (and is still possible that it will be considered fraud) this is not something you want to try and do yourself. Call a few local attorneys (most bk attorneys will give you a free or low-cost initial consult) and explain to them exactly what and how it got to this point.

If they are all basically in agreement that the debt cannot be discharged you may still be able to discharge your other debts which would, as mentioned earlier, free up income to pay off this SS debt.

Could you maybe give a few details about how it actually happened? You were on disability but still working, yes? Did you have to report monthly income?