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Discharging Unemployment Overpayments in Bankruptcy

Overpayments can be discharged during bankruptcy proceedings—but not always. If you’re having trouble with unemployment benefits and payments, you should discuss them immediately with an attorney in Montgomery County, TX.

Getting into debt is all too easy, especially considering the state of the economy these days. Still, you could be wondering what to do when your debts start snowballing and you continue to receive unexpected bills. Out of all the indignities, an unemployment overpayment might seem like the last straw. Here’s why they happen and how to handle it.

What is unemployment overpayment?

Have you ever received unemployment benefits in Montgomery County, TX when you weren’t expecting them? It’s hard to turn down that cash, and even if you knew you weren’t entitled to it, it could seem ridiculous to send what seems like “free money” back to the government, especially if it’s a sum that seems insignificant in the grand scheme of things. Sometimes it’s the difference between paying for groceries or going hungry. That doesn’t matter when it comes time to file for bankruptcy.

Unfortunately, if you’ve received one or more unemployment checks while you were still working—even if you weren’t able to work enough to pay your bills—that amount may be added to your bankruptcy debt.

What can the state do about unemployment overpayment?

When you are on unemployment and get a new job, you are supposed to call the unemployment office and let them know you have work, and do not need state support anymore. On the other hand, when you’re struggling, every little bit counts.

Luckily, the state generally discharges unemployment overpayments in Montgomery County,  TX along with the other debts that are discharged in bankruptcy. They can be discharged under Chapter 7 and Chapter 13 filings, depending on the particular circumstances and the skill of your attorney.

However, if you received a benefit as the result of fraud, like working a job while also receiving unemployment benefits, you could see that debt tacked onto the other bankruptcy debts that you racked up. Depending on the type of bankruptcy you file, this can be incredibly frustrating at best, and devastating at worst.

Ultimately, your smartest choice is to only accept the payments that are legally due to you. If you think that you might have gotten some unemployment benefits while you were legally considered to be working, be sure to talk to your attorney right away. It will have an important impact on the outcome of your case.

Talk about your unemployment benefits and payments with an attorney in Montgomery County, TX

If you’ve gone into debt because of or due to unemployment overpayments, you’re not alone. Your emergency should not have to rule your life, which is why you should call James R. Jones, Attorney at Law. Our office can help you get your life back on track, whether it means discharging unfair debts or doing whatever else is necessary to free you of debt and move on. Reach out to us today to learn more about our bankruptcy solutions.

James R. Jones, Attorney at Law.
James Jones, Esq.

Mr. Jones’ practice concentrates on business and consumer Chapter 7 bankruptcy
and he has been an attorney of record in several hundred such cases.