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