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Overpayment of Unemployment Benefits

Do not worry if you received overpayment of unemployment benefits, bankruptcy can help. The overpayment of unemployment benefits is dischargeable in bankruptcy just like a credit card debt or medical debt. As long as you did not you receive the benefits due to fraud or were not eligible, than it is dischargeable in bankruptcy. Call us toll free at 1-877-963-9543 to schedule a FREE PHONE CONSULTATION or FREE OFFICE CONSULTATION to find out is bankruptcy is right for you.

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Adding injury to insult is the letter received in the mail from the EDD informing you that you somehow owe them money. How can this be true? You received benefits from them because you needed the money to eat and live while you looked for work or other reasons. Now that you have accepted the money and spent it the EDD now says, “Oops, we made a mistake and you now have to give some of that money back.” Not a good day. The good news is that a debt owed to the Employment Development Department is dischargeable when filing bankruptcy as long as no fraud is involved.

If there is fraud involved the debt will most likely not be discharged. Debts incurred as a result of fraud are not dischargeable when filing for bankruptcy protection under any chapter of the bankruptcy code.

If you are still receiving money each month from the EDD, then they can also reduce the monthly payment to you to take the money back. So if you were receiving $1,000 a month they will reduce it to $600 and use the other $400 to pay themselves back. Bankruptcy will not stop the recoupment of the money in this manner. For more information about how bankruptcy can help get rid of unmanageable debts contact us toll free and schedule a free consultation today. You deserve a fresh start.

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