SI CHI02220.040 Supplemental Security Income (SSI) Overpayment - Recovery Through Bankruptcy Proceedings

 

A. Background

The Chicago Regional Office (RO) provides assistance with bankruptcy related questions and concerns utilizing the virtual help desk (vHelp).

B. Instructions on how to notify the RO of a bankruptcy petitions received directly from the claimant, representative payee, bankruptcy attorney or trustee, using vHelp

1. Notice of Chapter 13 Bankruptcy

  1. a. 

    Attach a copy of the Notice of Bankruptcy Case Filing.

  2. b. 

    Outline all actions taken by FO in accordance with SI 02220.040B.

  3. c. 

    Request RO to file a Proof of Claim if you answer NO to all of the criteria listed in GN 02215.195.

  4. d. 

    Include all supporting documentation that would prove useful (some examples are the SSID, and the folder including, but not limited to, MSSICS file documentation, Claims File User Interface (CFUI), and Notices.

2. Notice of Chapter 7 Bankruptcy

  1. a. 

    Attach a copy of the Notice of Bankruptcy Case Filing.

  2. b. 

    Outline all actions taken by FO in accordance to SI 02220.040B.

  3. c. 

    Request RO to file an Objection of Discharge (GN 022153.196 ) if there is supporting evidence establishing.

    1. 1. 

      False representation: Silence or concealment of a material fact can be sufficient to support a finding of misrepresentation. Accordingly, any change in circumstances which affect an individual's eligibility for benefits (such as a return to work, or a failure to continue as a full-time student), which is not reported to SSA, may be viewed as a misrepresentation.

    2. 2. 

      Intent to deceive: We can infer an intent to deceive where the debtor knowingly or recklessly makes a false representation or knowingly fails to provide material information which he/she knows or should know would cause him/her to receive benefits for which he/she is not eligible. Accordingly, in reviewing a claim to determine an intent to deceive, make sure the debtor has sufficient mental and physical ability to understand and comply with the reporting requirements.

    3. 3. 

      Reliance on Misrepresentation: SSA's reliance on the misstatement can be shown through SSA's continued payment of benefits.

  4. d. 

    Attach all supporting documentation for the Objection of Discharge. (Some examples include SSID, file documentation, fraud referral, report of investigation, etc.)

3. Instructions on how to notify the RO of waivers filed after the bankruptcy petition using vHelp

Follow instructions in SI 02260.000 and SI 02220.040B.

Attach the Notice of Bankruptcy Filing, Including the claimants name, SSN, and location (eVIEW, MSSICS, or CFUI) of all supporting documents (SSIDs, Notices, and the Region V SSI Bankruptcy Concurrence Request) in the body of the vHelp.

4. Other types of referrals or request for guidance from the RO in association with a bankruptcy petition using vHelp

  1. a. 

    Full SSN.

  2. b. 

    Bankruptcy discharged but SSA not listed as a creditor.

  3. c. 

    Bankruptcy cases with overpayments linked to a Court Ordered Restitution, Civil Monetary Penalty, or Section 104 (Overpayment Liability for Minors in Foster Care).

 


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0502220040CHI
SI CHI02220.040 - Supplemental Security Income (SSI) Overpayment - Recovery Through Bankruptcy Proceedings - 04/12/2022
Batch run: 04/12/2022
Rev:04/12/2022