Find Out About the Different Types of Government Over-Payments
If you have received an overpayment of government benefits, such as unemployment compensation or Social Security benefits, under particular circumstances such overpayment of benefits may be dischargeable in bankruptcy.
If you got over-paid with a government benefit and the government realizes this overpayment, the government may try to pursue this overpayment by:
- wage garnishment
- filing a lien
- an offset of current benefit (Social Security, for example)
- denial of a benefit for some time (unemployment benefit through the State)
Facing these methods of recourse, people often look toward bankruptcy for some relief
Generally, overpayment of government benefits is dischargeable in bankruptcy. There are, however, some exceptions to this general rule:- If the overpayment of the benefit was the mistake of the government (State or Federal; unemployment compensation; Social Security benefits, etc.), this will be a dischargeable debt in bankruptcy
- If the overpayment was a result of fraud or misrepresentation by the recipient of the benefit, this overpayment may not be dischargeable.
Often, the State and the Federal government will file this objection if there is clear evidence that there was fraud or false pretense involved in obtaining the benefit or the level of benefit originally.
If the State and Federal governments have received proper notice of the bankruptcy yet fail to timely file an objection, this debt will be discharged through the bankruptcy regardless of whether fraud or false pretense was involved. If you have received an overpayment of government benefits and Texas or the Federal Government is trying to collect on this overpayment, please contact the Law Office of Howard Tagg today at (903) 581-9961 to schedule your free consultation or fill out the form below.