Legal Question in Bankruptcy in California
If you owe back pay to the Employment Development Department (EDD) can it be included in a chapter 7 bankruptcy?
Asked on 9/27/11, 3:57 pm
1 Answer from Attorneys
Michael Stone
Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE
Most likely the debt is dischargeable. If you were found to have committed "fraud," and EDD objects, possibly not. Also, if you receive a discharge in bankruptcy and EDD were later to withhold future benefits to offset the debt, this might or might not be a violation of the discharge injunction.
Answered on 9/27/11, 4:03 pm