Are overpayments dismissed in bankruptcy cases

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This will depend on what type of overpayments you have. Like, if you have Social Security overpayments, you may be able to discharge these through bankruptcy. But again, if it is education loan overpayments, you may not be able to get these discharged through bankruptcy. I think you need to talk about this with the bankruptcy attorney if you are consulting one.


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Social Security overpayments can be discharged through Chapter 7 or Chapter 13 bankrutcy. They are regarded as unsecured debts. However, SSA has to prove that the overpayments were made through fraudulent activity.

 


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I don't think overpayments are dismissed in bankruptcy. If you have extra money, you can use it to pay off your creditors under the bankruptcy filing even. If will rather help you in getting a discharge quickly. Nevertheless, you should also have a word with your bankruptcy attorney and take his opinion in this matter.


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