Q: Medical Assistance overpayment
I have an overpayment for Medical Assistance from 2006. I'm getting notcied from the County for demand of payment. I filed chapter 7 bankruptcy in 2015 but did not list the agency. Per Department of Human Services website. The agency cannot require me to amend my bankruptcy and list them as a debt because it is an unsecure/low priority. I've told the worker this but she is still demanding payment.
The DHS website says that the agency must file their own Proof of Claim but she is refusing.
Am I still responsible?
As a matter of practice, I advise every client desiring to file for bankruptcy relief to provide me with the names and addresses of anyone and everyone who has ever asserted a claim against my debtor, even a guy who cut across the yard and sprained his ankle in a hole in that yard. The reason is simple, but of paramount importance- a claim/creditor not listed on the bankruptcy lists and schedules, and who does not have notice or knowledge of the bankruptcy, is not subject to the general discharge order entered by the bankruptcy court (there are recognized exceptions about omitted creditors in a "no-asset" case).
Speak with your bankruptcy attorney to review your options at this point.
Timothy Denison agrees with this answer
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