Generally, yes. Social security disability overpayments are generally dischargeable in bankruptcy like any other unsecured debt. They are not nondischargeable penalties owing to a governmental unit or tax obligations. However, social security disability payments cannot be discharged in bankruptcy if the overpayment was a result of fraud or a false statement. Section 523 of the bankruptcy code excepts fraudulently incurred debts and debts incurred by a false statement from discharge. Consequently, if the overpayment was the result of a material misrepresentation perpetuated by you, then you run the risk of the overpayment being nondischargeable in bankruptcy due to fraud.
Learn more about fraudulently incurred debts in bankruptcy or visit our bankruptcy lawyer's page at www.sacramentobankruptcylawyer.us
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