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LOUISIANA RECORD

Wednesday, April 24, 2024

Federal government requests Social Security benefits not be discharged in bankruptcy filing

Debt

MONROE – The federal government alleges that a couple misrepresented information to the Social Security Administration, resulting in the over payment of disability benefits.

United States of America, on behalf of the Social Security Administration (SSA), filed a complaint on March 11 in the U.S. Bankruptcy Court for the Western District of Louisiana, Monroe Division against Ronald Lee Kell and Sandy Gayle Kell, to determine the dischargeability of debt.

According to the complaint, the defendants filed for Chapter 13 bankruptcy in December 2015. The plaintiff alleges that it sustained losses and damages in the amount of $40,233.22 from September 1998 to May 2003. The plaintiff holds Ronald Lee Kell and Sandy Gayle Kell responsible because defendant Ronald Lee Kell allegedly fraudulently made misrepresentations to and purposefully withheld information from the SSA. The suit states he failed to inform the agency of his return to work status or report that he was earning wages over the substantial gainful activity levels. He allegedly also accepted disability benefits from the agency that he knew he was not entitled to receive.

The plaintiff seeks an order and judgment denying debtor a discharge of this $40,233.22 debt to the Social Security Administration. It is represented by Stephanie A. Finley and Cristina Walker of assistant U.S. attorney's office for the Western District of Louisiana and Michael McGaughran and Keith Simonson of the Office of the General Counsel for the Social Security Administration in Dallas, Texas.

U.S. Bankruptcy Court for the Western District of Louisiana, Monroe Division Case number 16-03002

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