Overpaid Unemployment Benefits
Have you been overpaid unemployment benefits? If so, it is a dischargeable debt in bankruptcy just like a credit card bill or medical bill. Call us toll free at 1-877-963-9543 to schedule a FREE PHONE CONSULTATION or FREE OFFICE CONSULTATION to find out if bankruptcy is right for you.
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What an unbelievable turn of events. You lost your job or are eligible for benefits for some other reason and they then pay you too much each month. It is not your fault. Nonetheless the Employment Development Department has sent you a bill for thousands of dollars. What are you going to do now? Well you can pay the bill for one. If you cannot afford to pay and do not think you will be able to any time soon, bankruptcy case help. If you qualify to file a chapter 7 bankruptcy the overpayment is dischargeable just like a credit card bill or a medical debt. You may also discharge the overpayment in a chapter 13 bankruptcy depending upon the circumstances.
If you collected benefits and you were no eligible because you were actually working or some other reason, there will probably be a problem. You cannot discharge an overpayment of benefits if you have committed fraud or lied to obtain the benefits. Debts incurred by fraud are not dischargeable when filing bankruptcy. You may also be charged criminally for obtaining benefits through fraud.
It is a problem if you are still receiving benefits at the time the EDD says you owed them money. The automatic stay that normally stops any and all collection actions will not stop the EDD from recouping the amount owed from you monthly benefit check. For example: If you are receiving $1,000 a month, the EDD will only pay your $500 and apply the other $500 to the amount you owe them until the amount is paid back.
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