Legal Question in Bankruptcy in California

Can Bankruptcy release you from a California EDD wage garnishment? Even if the overpayment was fraudulent?

Asked on 9/30/12, 12:23 pm

1 Answer from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

The bankruptcy can release you from a debt owed to the EDD unless they file a timely lawsuit in bankruptcy court called an adversary proceeding. If they file the lawsuit and prove fraud, it would survive the bankruptcy.

A bankruptcy discharge does not prevent criminal prosecution for theft.

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Answered on 9/30/12, 2:22 pm

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