Case Law
Decision Date
20
Mar 2019
Name
IN RE: James THIGPEN, Debtor.
Attorney(s)
Daniel P. Lindsey, Kathryn Liss, Joan Simpson, Legal Assistance Foundation, Chicago, IL, for Debtor., Order on Remand - Ruling on SSA Motion for Relief from Automatic Stay (Docket 11) Amended on April 22, 2019 Nunc Pro Tunc, A creditor wishing to retain funds it owes a debtor in bankruptcy may seek relief from the automatic stay under 11 U.S.C. § 362(d) which states that the automatic stay may be terminated, annulled, modified or conditioned for cause, including the lack of adequate protection of an interest in the property of such party in interest, or if the debtor does not have equity in such property and such property is not necessary to an effective reorganization. 11 U.S.C. § 362(d)(1) and (2)., The burdens of proof with respect to stay relief motions are provided for in section 362(g) : "the party requesting such relief has the burden of proof on the issue of the debtor's equity in property and the party opposing such relief has the burden on all other issues." 11 U.S.C. § 362(g)(1) and (2)., The SSA has not shown that the automatic stay should be modified or terminated for cause or for lack of adequate protection. The confirmed modified plan provides for monthly payments to SSA; it has not been shown that the payment amount fails to provide adequate protection. With respect to whether the Debtor has equity in such property, the court finds that the record does not include sufficient information to address this issue., The debtor can show prejudice. Either he supports himself by having part of his monthly benefit satisfy the SSA overpayment obligation as provided for in the confirmed plan, or have all of it satisfy the SSA overpayment obligation. Clearly, he would be prejudiced if required to forego the entire benefit. His Amended Schedule I of Income discloses that he has monthly income of a $ 968 SSA benefit and a $ 665 contribution from a son. Docket 24, p. 2., The Debtor received, via fraud, overpayments under the Supplemental Security Income program ("SSI") under Title XVI of the Social Security Act ("Act") while he is now receiving OASDI benefits under Title II of that act. Section 404 of the act covers recovery of SSI benefits; section 1320b-17 of the act governs recovery of the benefits that the Debtor now receives. Section 1320b-17 allows the SSA to withhold funds without regards to a limit that applies to situations where the recipient is not at fault for the overpayment.
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