QUESTION
If I owe $68,000 to social security, can I still file chapter 13 and include it in?
Asked on Jan 29th, 2017 on Bankruptcy - Michigan
5 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Not only can you include that debt, you must include that debt! Whether or not the debt to Social Security can be discharged depends on its nature: if it is Repayment of money received as a result of fraud, it is not dischargeable if the government acts to prevent its discharge.
Answered on Apr 04th, 2017 at 9:04 AM
I believe so. I have about 60 standard questions I need to ask before I can say one way or the other.
Answered on Apr 04th, 2017 at 9:04 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Bankruptcy will probably not discharge a debt to Social Security. If you are an employer who didn't pay the taxes you withheld from your employees, that debt is nondischargeable. If you fraudulently applied for Social Security benefits, that debt is nondischargeable. If the Social Security Administration accidentally sent you $68,000 involving neither tax evasion or fraud on your part, that debt would be dischargeable.
Answered on Apr 04th, 2017 at 9:02 AM
You must include every debt you have in any bankruptcy, but you have not provided enough information for me to say whether this debt would be eligible to be discharged in either Chapter 7 or Chapter 13.
Answered on Apr 04th, 2017 at 9:02 AM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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As long as the money was not obtained by fraud you can include it. If it was obtained by fraud you should include it anyway and hope that The SSA doesn't file any objection to dischargeability.
Answered on Apr 04th, 2017 at 9:01 AM