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Can you declare bankruptcy for overpayment for unemployment?
No. You can file for bankruptcy for debts to be discharged. If you are being asked to repay the overpayment, that is a debt.Whether it can be discharged or not depends on whether the overpayment is due to something you did that amounts to fraud or misinformation you provided. If you are not at fault for the overpayment, it would usually be dischargeable. Consult a local bankruptcy lawyer, since the case law varies from one bankruptcy court to another.
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No. But, it may be in your favor to do both. Check with a lawyer.
Most likely. Filing for bankruptcy does not mean that it will automatically be granted. There is a process in which the court evaluates your debt versus your assets/inco…me. Your unemployment benefits will be calculated into this equation.
A discharge in bankruptcy means all your unsecured debts are discharged and your secured debts have either been reaffirmed or the collateral has been surrendered and the remai…ning balance has been discharged. So you get a "fresh start" financially. Your credit score lowers a bit, but if you had to file for bankruptcy, your score was probably low anyway. It starts going up, finally. The discharged debtor may find it difficult for a while to get a job involving handling money. It may be difficult to get a new apartment or buy a house until you have increased your credit score enough to qualify. You will get offers for a new credit card. Read them carefully. Check the card issuer out carefully at Consumer Reports and get the lowest interest rate available and a low card limit ($300 to $500). Use it, never going even close to the limit, and pay the balance in full before the due date. You will be able to buy a car, but at a high interest rate. Make sure the lender you use (a local credit union is best) will allow you to lower your interest rate if your payments are made on time.
You probably won't get any protection/relief for that. First, overpayments and amounts due to most governmental agencies are given a very high priority. Second…, and more importantly, is that under almost any instance of you receiving unemployment that you weren't supposed to, it is because of your filing a claim that you weren't alllowed to, or hiding your current employment of such, all of which to collect you swore something different, and is actually able to be pursued as a fraud and crime. The agency is giving you a break allowing you to make it good. Illegal acts, like fraudulently getting UI, are not going to get any protection by the BK court.
Answer It depends. Any overpayments or funds received by fraud from any state or federal agency cannot be discharged in a Chapter 7 bankruptcy, or in a Chapter 1…3 bankruptcy filed on or after October 17, 2005. If the overpayment was not the result of fraud, it will be discharged. See the case of Lee v. Schweiker, 739 F.2d 870, 874 (3d Cir. 1984). SSA or any other government agency must prove, in the bankruptcy court, that the overpayment was the result of fraud. If fraud is proved, the overpayments will not be discharged in bankruptcy, and SSA can recover the overpayment from any future benefits. Please be advised that the SSA has the option of filing a civil suit if the amount is large enough, and can file federal criminal charges if the benefits were obtained fraudulently.
They will subtract it from your state income tax every year till it is paid back.
Under federal law, your VA benefits can only be garnished for the following: Child SupportAlimonyUnpaid Back TaxesDebts to other Federal Agencies There has been a problem, h…owever, with debt collectors freezing and levying bank accounts after the disability deposit has been made. If this happens, you have to go to court to stop them. Unemployment benefits are administered by the state, not the federal government. If there is a levy against your account or a writ of garnishment on your VA Disability check for overpaid unemployment compensation, contact your local Vet Center (see link below) or legal aid society for assistance. The answer above is not wholly true. VA disability cannot be garnished for child support. The law states only when VA disability is for retirement purposes and only then can it be used to calculate child support. However there is this thing called a proportionate that can take up to 80 percent of a members income, and it has to go through and be approved by the VA office. But that is used only when one is not paying a sufficient amount and not making an effort to pay child support. The reason for the law is so the deadbeats do not waive the military retired pay in order to receive disability which they think they can get away with not paying child support.
Yes, but the following applies: Only the "liable" state (where your work history qualified you for benefits) will pay the benefits, if any. You can file in the liable state, o…r where you live now and your state will act as the "agent" state, to coordinated the payments. Now, if you owe for overpayments, you need to disclose that so they can make adjustments in the benefits you're entitled to. To not do this may make you subject to unemployment fraud laws.
how can I stop a wage garnishment
You could be charged with a misdemeanor or felony, depending on the amount owed, plus fines and/or other penalties They will subtract it from your state income tax every year …till it is paid back.
It depends on the specific type you are filing for. But whether you are an individual or a corporation, the monetary amount of debt, and how much you make annually can all fac…tor into the equation of qualification.
I've had an unemployment overpayment in Iowa for nearly 10 years and have never had any of my wages garnished.
There are General Federal Laws that govern Bankruptcy. Each state may have additional laws regarding bankruptcy. So Is Best to consult an attorney or financial adviser in your… state.
The State of Michigan can only offset your federal refund, if they say the overpayment was due to misrepensentation or fraud. In this case you will need to contact a Bankr…uptcy Lawyer to help.
Yes, except if you apply for jobs requiring a clean credit history. The bankruptcy cannot be used as a reason for not getting a job.
Yes. Unreturned unemployment benefits overpayments may be deducted from your federal income tax refund.