Can you discharge EDD overpayments in a bankruptcy?

Can you discharge EDD overpayments in a bankruptcy?

In bankruptcy generally you can discharge the unemployment overpayments. Unemployment benefits or EDD overpayments (in California) are treated like any other debt in bankruptcy. It is subject to discharge in a Chapter 7 and Chapter 13 bankruptcy.

Can you file bankruptcy on unemployment overpayment in Ohio?

The answer is yes, it is! When OBES asks for the return of money it paid out as unemployment compensation, that money is called a recoupment of overpaid benefits that the debtor was never entitled to.

Can a unemployment overpayment be discharged in bankruptcy?

As a general rule, the Bankruptcy Code permits the discharge of unemployment overpayments when you file for Bankruptcy. These payments are usually treated as an unsecured debt and are dischargeable.

What happens to unemployment overpayment in Pennsylvania?

The Commonwealth of Pennsylvania debt for the unemployment overpayment will be treated the same as all other general unsecured creditors that you list in the Bankruptcy Petition. If you file for Bankruptcy protection, the automatic stay will stop collection activities by the state to collect for the overpayments that you were paid.

When is a fault overpayment not dischargeable in bankruptcy?

If you commit fraud then Title 11 Section 523 of the U.S. Bankruptcy Code provides that any debt incurred through fraud is not dischargeable. If you receive benefits that you are not entitled to because of your actions, such as withholding materials or providing fraudulent information, you must repay a fault overpayment.

What happens if you file bankruptcy in Pennsylvania?

If you file for protection under Chapter 13 Bankruptcy, the Commonwealth of Pennsylvania can file a priority or secured claim which your attorney will either have to object to or file documents dealing with the claim. Otherwise you could wind up paying back Pennsylvania’s unemployment claim in full in the Chapter 13 Bankruptcy.

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