Can I Discharge An Overpayment Of Unemployment Benefits From The Edd?
Unemployment is often a factor leading to someone filing for bankruptcy. As a result, many filers are recent recipients of state unemployment benefits. Sometimes, overpayments of benefits will occur and the state will demand repayment. There are several ways an overpayment can occur and these are sorted into two categories: fraud or non-fraud. Depending on how the overpayment occurred, bankruptcy may be able to help.
If the overpayment occurred due to fraud on the part of the applicant, the state will have grounds to object to the discharge of the debt owed to them. If the discharge is denied, the state can continue its efforts to collect the overpayment. However, if the court determines the overpayment was received through no fault of the recipient then the debt is dischargeable through bankruptcy.
Have you recently received unemployment benefits and find out later you need to repay the state? You should discuss your situation with an attorney to see if this balance would be discharged through bankruptcy. Please feel free to reach out to your Stockton bankruptcy attorney at 209-952-0355.
Categorized in: Debt