Overpayments to Disabled Debtors Cannot be Reclaimed by Social Security
The Social Security Administration is barred from reducing payment proportions to a bankruptcy-stricken beneficiary to reclaim overpayments it made due to its own error. This was the ruling of a federal appeals court. The court underscored that equity considerations prevent the Social Security Administration from pursuing the disability insurance benefits of Darrin Lenald Cooper. He discharged his debts through bankruptcy proceedings, and the US Court of Appeals for the Ninth Circuit underlined this fact on Thursday. “The limited factual and legal connections between the debt and Cooper’s ongoing entitlement to SSDI benefits do not make it equitable for SSA to defy the financial protection purposes of Chapter 7 bankruptcy and SSDI benefits to recover an overpayment.
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