In the Matter of Randall B. Neavear, Debtor. Randall B. Neavear v. Richard S. Schweiker, Secretary of Health and Human Services

CUDAHY, Circuit Judge.

In this appeal we are presented with a question of first impression at the federal appellate level: whether section 207 of the Social Security Act, 42 U.S.C. § 407 (1976), confers on the Social Security Administration (“SSA”) a blanket exemption from the operation of the bankruptcy laws, so that a debt owing to the SSA because of an overpayment of benefits cannot be discharged in bankruptcy. We hold that the SSA enjoys no such immunity from the bankruptcy laws and that the overpayment debt is dis-chargeable under the provisions of the Bankruptcy Reform Act of 1978, 11…