Legal Question in Bankruptcy in California

can I discharge an edd overpayment with the state of california through a chapter 7 Bankruptcy?


Asked on 9/09/09, 11:49 pm

1 Answer from Attorneys

Norma Duenas Southern California Law Advocates

In bankruptcy generally you can discharge the edd unemployment overpayment but many courts find that the unemployment insurance overpayment can be recouped after bankruptcy. This means that if later on you seek unemployment benefits they can withhold from your benefits the overpayment until it is fully paid back. In a sense this means that although technically the debt has been discharged in bankruptcy, you may still end up paying the debt back through recoupment. http://www.socaladvocates.com

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Answered on 9/10/09, 11:19 am


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