Social Security Attorney Fees And Bankruptcy

From the New York Law Journal:

The Social Security Administration does not have the authority to demand the return of fees it paid to an attorney who represented a disability claimant whose debts were discharged in bankruptcy, a federal appeals court has ruled.

The 2nd U.S. Circuit Court of Appeals said the payment of $1,200 to the firm of Binder & Binder could not be undone by the agency even though the debtor disputed the firm's bill in her bankruptcy petition.

The ruling in Binder & Binder v. Barnhart, 05-6794-cv, was issued by Judges Roger Miner, Joseph McLaughlin and Robert Katzmann, with Judge Miner writing for the court.