Are Overpayment of Unemployment Benefits Discharged in Bankruptcy?

by Cynthia Lawson
Overpayment of Unemployment Benefits are subject to discharge in both chapter 7 and chapter 13 bankruptcies. The overpayment of unemployment benefits are not given special protections, even if they are owed to the state. An unemployment overpayment is not a debt that is listed as exempt from discharge. Filing for bankruptcy can provide significant relief from the collection efforts of the state.Read the full article