There are situations where debtors in bankruptcy have received “overpayments” of benefits from the Social Security Administration.  Typically, these benefits are in the form of social security disability sums that the debtor has already received.

The debtor will then get a letter informing him or her that the disability amount was paid out “in error” and that it needs to be recovered.  Obviously, this is not the type of news that is welcome for a distressed debtor, who has enough problems just trying to get back on his or her feet.  The question then arises:  is the debt for social security disability overpayments dischargeable in a bankruptcy?

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