United States v. Pipkin (In re Pipkin), 495 B.R. 878

Pipkin filed a Chapter 7 bankruptcy on February 2, 2012.
SSA filed a complaint on May 7, 2012 seeking nondischargeability of a $49,517.70 overpayment under § 523(a)(2).
Trial occurred December 11, 2012; both sides submitted briefs; issue proceeded as core under 28 U.S.C. § 157(b)(2)(J).
SSA contends the overpayment resulted from false pretenses/representations by Pipkin; Pipkin did not dispute the amount and admitted knowledge of ineligibility upon employment.
SSA denied Pipkin’s waiver request for repayment and Pipkin did not appeal SSA’s overpayment determination; court held the overpayment was intentionally concealed and caused by failure to report earnings.
The court held the debt nondischargeable and invited entry of judgment pursuant to Rule 7058.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the overpayment is nondischargeable under § 523(a)(2)(A).	Plaintiff asserts Pipkin obtained benefits via false pretenses/representations.	Pipkin contends no non-dischargeability defense beyond waiver considerations.	Yes; overpayment is nondischargeable under § 523(a)(2)(A).
Whether Pipkin knowingly failed to report earnings, constituting a false representation.	Pipkin knowingly failed to report employment earnings to SSA.	Pipkin admits some fault and inability to report; argues waiver issues.	Yes; failure to report earnings established a representation with knowledge of falsity for purposes of § 523(a)(2)(A).
Whether SSA waiver denial or lack of appeal affects dischargeability.	Waiver denial demonstrates fault by Pipkin.	SSA waiver denial is not subject to bankruptcy appellate review; court lacks jurisdiction to review SSA waiver decisions.	Waiver denial does not excuse nondischargeability; bankruptcy court cannot review SSA waiver determinations.

Grogan v. Garner, 498 U.S. 279 (1991) (establishes burden and elements for § 523(a)(2) nondischargeability)
In re Treadwell, 637 F.3d 855 (8th Cir. 2011) (elements for nondischargeability under § 523(a)(2))
In re Ophaug, 827 F.2d 340 (8th Cir. 1987) (fraud elements under § 523(a)(2))