Government Benefits, Overpayments And Bankruptcy

If you are receiving Social Security, unemployment compensation or another type of government benefit, you may wonder if bankruptcy is an option for discharging debts such as benefit overpayments. In most cases, the answer is yes.

At Charles J. Schneider, P.C., our lawyers offer a free initial consultation to explain how a bankruptcy filing can discharge overpayments of government benefits and other types of debts. Our law office is conveniently located in Livonia, Michigan, and we serve clients throughout the Detroit metropolitan area.

Government Benefits And Bankruptcy Eligibility

If you are receiving government benefits and are faced with overwhelming debt, you can file bankruptcy and obtain debt relief just like any other wage earner. The following are examples of government benefits:

  • Social Security retirement or disability benefits
  • Workers' compensation
  • Unemployment insurance
  • Social welfare benefits
  • Crime victims' compensation
  • Veterans benefits

Discharging Benefit Overpayments In Bankruptcy

It happens frequently: a person receiving Social Security, unemployment insurance or another government benefit receives a notice that he or she must repay benefits that were paid in error. This can create a financial nightmare, as the money is typically already spent to pay bills.

Unless the overpayments were the result of fraud or intentional deceit on your part, they can be discharged by filing bankruptcy. It's important to see an attorney as soon as possible, as the government will attempt to recoup the overpayments from future benefit checks.

Livonia Bankruptcy Benefits Lawyer

To discuss Social Security, unemployment insurance and other overpayments with a certified Livonia bankruptcy lawyer, call 734-237-1523 or fill out the contact form on this website. We offer evening and weekend appointments.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.