Can social security hold someone responsible for money that was direct deposited into another’s account and spent by them?

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Can social security hold someone responsible for money that was direct deposited into another’s account and spent by them?

My fiance was on social security and was cut off when he turned 18. His mom appealed it for 2 years. He ended up being denied, so now he owes quite a bit of money back. He however never saw the money. It was direct deposited into his moms account. Can he be fully held responsible for money he never saw? I am concerned about how this will effect our future finances. He is not even able to receive a tax return due to the social security intercepting it.

Asked on May 6, 2012 under Bankruptcy Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unfortunately for your fiance' the Social Security Adminsitration can hold him responsible for monies improperly paid him yet spent by his mother when he was under the age of 18 even if he never saw the money. The reason is that he was the person for whom the benefits were paid out for. Potentially the money was used for his upkeep and maintenance.

The best way for him to try and resolve the situation with respect to owed money by him to the Social Security Administration is to speak with his mother with respect to the possibility of both of them making payments to pay off the amounts that need to be reimbursed.


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