Can unemployment over payment debt be discharged when I file chapter 7 ? 9 Answers as of February 20, 2012

Yes, they are not exempt from chapter 7 discharge.

Yes, chapter 7 will resolve this.

Generally overpayments such as this are not dischargeable. However, if you have documentation showing that the overpayment was reversed and that you no longer owe it, I would list the debt as unsecured and see what they do. Most likely, if they think you still owe it, they will file an objection to discharge and a telephonic hearing will be held. Your attorney will file the evidence of the reversal and the Bankruptcy Judge will determine whether you can discharge the debt. I think you have a good chance of winning on those facts.

It should unless a timely objection is filed (and a timely objection won't be).

Possibly. Your lawyer will need to file appropriate papers.

Over payment can be discharged as long as it was not obtained by fraud. However, unless you are already planning on filing I don't know that $900 is enough to file on.

The overpayment will be discharged unless EDD files a lawsuit against you in bankruptcy to have the due amount declared non-dischargeable because of fraud. Most likely the EDD will not file the lawsuit, especially over such a small amount.

Only a limited number of debts are not dischargeable in a bankruptcy case; such as taxes, student loans, fines, child support, etc. However, if an entity can prove fraud was a factor in a debt, then the court "might" not discharge that debt. If a court has already found that the debt is not owed, then you can use that judgment to help prove that the debt should also be discharged in bankruptcy court; but you may have to prove again that you were entitled to the benefits if the creditor objects to the discharge of the debt. Normally, the courts are fairly liberal in discharging such debts when no fraud exists, but every case is different and one missing fact may cause a different result, so I suggest that you contact an attorney to discuss this matter in detail. My assessment of this situation does not create an attorney/client relationship and this is not to be considered advice because my answer is based upon a generalized question of law and only a complete review of all the facts and documents could result in an educated response.

You will have to contest the dischargeability in Bankruptcy Court. You will need an attorney to do this. And yes, sadly, it will cause some extra. It will not cost much, probably. But if they really come in to contest, then it could get pricey. If the facts are as you say, they will back off and not contest when file to determine dischargeability. They will not back off if you don't have a attorney.