Can I include State Medicaid Overpayments in my Chap 7 Bankruptcy?
3 attorney answers
Everything MUST be included, in terms of what you own and owe; but certain obligations you owe CANNOT be discharged.
Medicaid overpayments which were fraudulently gained are debts which are frequently alleged to be non dischargeable.
When a government entity can prove the overpayment was gained by fraud, the debt becomes non-dischargeable (presuming they file an adversary proceeding).
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You must "include" every debt in your bankruptcy, or you will be guilty of bankruptcy fraud. Whether you will be able to eliminate this debt in bankruptcy will largely depend on whether the government chooses to pursue an adversary proceeding against you within the short timeline permitted under bankruptcy law. Hope this perspective helps!
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Yes, but the state can allege fraud and object to your being able to discharge the debt by filing an adversary proceeding against you. You'll need an attorney for this if they do because they will definitely have one.
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