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Is my entire private LTD insurance overpayment debt dischargeable?

Simi Valley, CA |

Receiving private ltd payments before and after filing chapter 7 in California. Insurance company now stating overpayment due to SSI benefits. Is this dischargeable debt?

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Attorney answers 3


Over payments received after filing are not part of bankruptcy and can be recovered. Did you list insurance company in bankruptcy,if not the debt might not go away. If listed creditor has 60 days afte 341 hearing to sue for fraud.


I agree. Whether the overpayment is dischargeable would depend on when the overpayment occurred and whether you listed the debt. To be dischargeable the overpayment would have to have occurred prior to the filing of your bankruptcy and you would have had to list the insurance company.

Check you policy to see if they have the right to offset against future payments due.

This answer in no way creates an attorney-client relationship. The answer is not a complete answer and requires additional facts in order to provide the best options. The submitter accepts the risk of relying on such an incomplete answer and waives any claims of damages for doing so. As stated in the answer the submitter should contact a qualified bankruptcy attorney is discuss these issues further before any action is taken. Any action taken without advise and counsel of a qualified attorney is inadvisable.


Notwithstanding the earlier comments, the LTD overpayments may become non-dischargeable if they were the result of fraud and/or misrepresentation which would have to be adjudicated by way of the insurance company creditor commencing an adversarial proceeding to make the amount non-dischargeable.

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