Can I discharge an overpayment of a government benefit in a Chapter 7 bankruptcy?
If you received an overpayment of government benefits because you told the agency in question you were unemployed when you weren’t , the agency may object to discharging that debt. If they can successfully prove that you only received the overpayment because of your false representation, that debt likely will not be discharged.However, if the overpayment was due solely to administrative error on the part of the agency, that debt will likely be discharged. As long as you didn’t commit fraud to receive more money than you were entitled to, the debt should be dischargeable.