Legal Question in Bankruptcy in California
If I owe money for overpayment of unemployment benefits in California, will filing for bankruptcy help?
Asked on 2/17/14, 4:44 am
1 Answer from Attorneys
Peter Lago
Peter L. Lago, Atty at Law
Your overpayment will be discharged in a Ch 7, BUT the EDD will still have a "right of recoupmentt" against future benefits. In other words, EDD will not be able to come after YOU personally now, but if you file for benefits in the future, they can RECOUP to the extent of the overpayment. Sounds unfair but that's the law.
Answered on 7/25/14, 11:15 am