Fold pocket Aces??

[Toopskees]

Home game NLHE tournament. Top 3 places pay. We are down to 4 players (bubble time). The situation:

Seat 1: (Loose passive player) -- 7500 chips
Seat 2: (Loose aggressive player) -- 5500 chips
Seat 7: Hero -- 9800 chips
Seat 9: Villain (has been playing erratically, and I had raised his SB consistently when I had the button) -- 5200 chips

Blinds are 500/1000

Seat 1 is the button.
Seat 2 posts 500 small blind.
I post 1000 big blind.
Villain is UTG and goes all in for 5200
Button folds
SB goes all in for 5500
I have pocket aces in the BB

Can anyone make a case for folding the aces in this spot?