GN KC02215.190 Debtor Involved in Bankruptcy Proceedings - Notifying the Office of General Counsel (OGC)
See GN 02215.190
The Kansas City Office of General Counsel (OGC) has asked Field Offices (FOs) in the Kansas City Region to fax the them a copy of the bankruptcy notice (and/or any other subsequent information with regards to bankruptcy) at the same time the FOs fax information to the PSC/ODO (for Title II) or to the RO (for Title XVI).
For some time, the Kansas City OGC has been working on ways to better improve the bankruptcy process, specifically the ability to "object to the discharge" of the debt. Notifying them of bankruptcy cases, early in the process, will assist them in this course of action. FOs should use the coversheet below when faxing information to the Kansas City OGC.
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The above procedure has already saved our agency thousands of dollars. You may read about some of OGC's "success stories" at:
http://kcnet.kc.ssa.gov/cps/t2policy/overpayments/Bankruptcy Success Stories as Shared by OGC.htm
FOs may want to keep copies of what is faxed to OGC so they will have a record of the full Social Security Number (SSN) If subsequent information is received, showing just the last four digits of the SSN, it will be easier to associate. FOs will also be able to enter the full SSN on the coversheet when faxing subsequent information to OGC.
NOTE: These temporary files are merely to help FOs associate subsequent material and may be destroyed periodically.
For Title XVI bankruptcy cases follow SI 02220.040 . Additional instructions are located in GN 02215.185 through GN 02215.190. FOs should also include the following remarks on the SSR: Name of District Court, Bankruptcy Type for (Chapter 7 or 13), Date of Filing and Case Number.
NOTE: If a parent/payee/guardian has filed a bankruptcy petition and the child's overpayment is included in that petition, OGC has asked that we stop collection on the child's overpayment as well, to avoid a contempt citation from the court.