QUESTION
Can I include a unemployment benefit overpayment when filing for bankruptcy?
Asked on Mar 05th, 2013 on Bankruptcy - Texas
More details to this question:
The state of Illinois recorded a state lien for unemployment benefits over payment. Can I include it in a bankruptcy?
8 ANSWERS
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes, this unemployment overpayments must be included in your bankruptcy. As long as there is no fraud involved, it will be discharged.
Answered on Mar 14th, 2013 at 2:40 PM
You have no choice, you must list all of your debts in your bankruptcy. While over payment of unemployment benefits can typically be eliminated through bankruptcy, if there is a tax lien, you have been exceptionally unlucky, as liens of this nature cannot be eliminated through bankruptcy. However, if the equity in your property is less than the amount of the lien, the lien may be lowered to the total value of your property. Sorry, state exemptions dont apply!
Answered on Mar 06th, 2013 at 12:07 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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By law you have to. The real question is whether or not it is dischargeable. Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Mar 06th, 2013 at 12:07 PM
2 Awards
Yes you can.
Answered on Mar 06th, 2013 at 12:06 PM
Deborah F. Bowinski
You MUST include it in your bankruptcy, just as you must disclose every single debt you owe. Whether it will be discharged is a different question and is one much more difficult to answer in this forum. There may be issues of fraud involved which would affect the dischargeability if the debt.
Answered on Mar 06th, 2013 at 12:06 PM
Bankruptcy Law Attorney serving Ogden, UT
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Richards & Godfrey, P.C.
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Include, yes. Discharge, no.
Answered on Mar 06th, 2013 at 12:06 PM
Bankruptcy Attorney serving Dallas, TX
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Polk & Associates
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When you file a bankruptcy case, the court will want a list of every debt you think you might possibly owe to any person, anywhere in the world. So yes, you should include the unemployment over payment when you file. As to whether or not your bankruptcy case will eliminate that particular debt by discharging it, the answer usually is yes but that answer can sometimes change when a lien has been filed as you indicated has been done. When a lien has been filed, you have to look at the exemptions and compare those to the property before being able to guess. Something else that effect the answer is the timing of when the lien was filed compared to when the bankruptcy case was filed.
Answered on Mar 06th, 2013 at 12:05 PM