Legal Question in Bankruptcy in Wisconsin

Bankrupcy

My wife and I filed Pro Se bankruptcy on 03/04/09 when I called to give the file# to unemployment they stated that they would not continue to go after the overpayment I owe but would continue to impose the fine of $8K They have been holding my unemployment bennifits to pay the overpayment and intended to take our joint Tax return. I believe they are still planing to take the taxes, I was under the assumption that once filed bankruptcy put a stay on all garneshments, also is there any case law that would help me claim the fines with the bankruptcy and have the entire amount discharged? any advice would be greatly appreciated. Thank you for your time.


Asked on 3/05/09, 2:04 pm

1 Answer from Attorneys
JAY Nixon nixon law offices

Bankrupcy Settoff of Amounts Owed to Debtor for Discharged Debts

While creditors are generally entitled to a right of "setoff" of amounts they owe to bankrupt debtors, they must usually first get permission of the court, at least while the automatic stay is in place. Creditors violating this face potential contempt of court sanctions provided that you stand up for your rights. Doing that may require you to file an entirely new lawsuit against the creditor known as an adversary proceeding. You will probably need a lawyer for that. These comments are not intended as legal advice for you unless you subsequently retain me.

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Answered on 3/10/09, 4:46 pm


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