In a case that could impact health care bankruptcies, where jurisdiction over Medicaid and Medicare claims in bankruptcy are often disputed, the Fifth Circuit, in In re Benjamin v. U.S. Social Sec. Admin., reversed the district court’s decision, holding bankruptcy courts are not barred from exercising their jurisdiction to hear Social Security claims.
Following the Debtor’s Chapter 7 bankruptcy filing, he initiated an adversary proceeding demanding the Social Security Administration repay the amount it collected from the Debtor on account of an overpayment he received for almost a year and a half. In overturning the district court’s decision, the Fifth Circuit found that the plain language of 42 U.S.C. § 405(h) did not bar bankruptcy courts from relying on their general bankruptcy jurisdictional grant under 28 U.S.C. § 1334(b) to hear the Debtor’s case.
Read the source article at jdsupra.com