TN 9 (05-02)

GN 03106.024 Bankruptcy Court Actions and Discharge Orders

To obtain relief from repayment of debts, including overpayments of title II and/or title XVI benefits, an individual may petition the bankruptcy court to discharge the debts or schedule a repayment plan. Generally, issues involving bankruptcy petitions/discharge orders are matters to be resolved between the FOs, PCs and OGC. It is no longer necessary to send copies of bankruptcy petitions/discharge orders to ODP/OALC. See GN 02215.185 – GN 02215.230 for detailed processing instructions when a bankruptcy petition/discharge order is received.

If a bankruptcy petition is received, SSA must immediately stop all efforts to recover the overpayment. See GN 02215.195. If there is any indication that SSA may be in contempt of court because recovery efforts were not timely stopped, PSCs/FOs should contact the appropriate Regional Chief Counsel's Office through the ARC-MOS. PC7 should contact OGC/OPL through OALC. OALC/ARC-MOS will work with OGC to resolve the matter and file any response necessary with the bankruptcy court.