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Experience

Insurer Can Recoup Overpayment of Disability Benefits Without Relief from Automatic Stay

Successfully represented insurance company in dispute concerning insurer’s ability to recoup, without obtaining relief from the automatic stay, a pre-petition overpayment of disability insurance benefits from post-petition disability benefit payments owed to an individual Chapter 13 debtor.  The U.S. Bankruptcy Court for the District of Kansas rendered a decision concluding that insurer could exercise equitable right of recoupment to recover such overpayment from post-petition benefit payments without obtaining relief from automatic stay and rejecting debtor’s claim for sanctions.

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