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.