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March 2026 - Article

Honest, but Still Unfortunate? Ninth Circuit Defines Authority of Social Security Administration to Recoup Overpayments Following Chapter 7 Discharge

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The article highlights a notable Ninth Circuit decision where it ruled that the Social Security Administration (SSA) does not get a free pass to claw back overpayments just because the payment came from a benefits program, like Social Security Disability Insurance benefits. In this particular case, the court ruled that recoupment was impermissible given that the overpayment arose from the SSA’s own error, the debtor already received a no-asset Chapter 7 discharge, and there was no evidence of malfeasance by the debtor.