Can unemployment overpayment be kept out of the bankruptcy and we continue to pay as agreed? 9 Answers as of November 05, 2014

My husband has an overpayment of about $7500 (was more than $8500) from 2002 which he has been making monthly payments on. Unfortunately, due to some unsecured debts and back taxes we have to file bankruptcy. Now it is my understanding that unemployment overpayment debt can be discharged through chapter 7. However, I also understand that this is only the case if the overpayment was due to clerical error or some other error where the claimant is not at fault, sadly this is not the case with us, which is why my husband is paying it back. We are not looking to have this debt discharged we want to continue paying it, we realize having to include it as a debt could bring up other legal ramifications. Is there any way that we can continue to pay it as we are now through a chapter 13 and if not what else could be done?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
The Ch13 payment has to include this debt. The creditor can file an action to have it declared non-dis chargeable in which case the classification could change so it could be paid. You need a good lawyer to represent you.
Answer Applies to: California
Replied: 11/5/2014
You must include all debts on the list of creditors. If you want to reaffirm a debt you can do that. Unemployment compensation overpayment is dischargeable unless there was a misrepresentation involved but it would up to the unemployment compensation administration to file an adversary action.
Answer Applies to: Minnesota
Replied: 11/3/2014
Steele, George, Schofield & Ramos, LLP
Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
When you file a bankruptcy petition, ALL of your assets and ALL of your liabilities MUST be listed. Leaving out any asset or liability could expose you to a denial of discharge. There are no exceptions to this rule.
Answer Applies to: California
Replied: 11/3/2014
Scott Goldstein | Scott Goldstein
Not really - you do not get a choice as to doing so. You may have to file a 13.
Answer Applies to: New Jersey
Replied: 11/3/2014
Garner Law Office
Garner Law Office | Daniel Garner
You must list all of your debts including the unemployment benefits and pay for them through your chapter 13 plan. It is likely that the trustee will pay it as a priority debt. There are no negative legal ramifications if you are open and honest about the debt.
Answer Applies to: Oregon
Replied: 11/3/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    You must include all your debts in your bankruptcy. No exceptions to listing the debt in your case. If the creditor objects to your discharge & you are willing to agree to pay this debt, then you can accomplish this. But the decision will be up to the bankruptcy judge, not you unless you want to commit a criminal offense.
    Answer Applies to: Nevada
    Replied: 11/3/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You can voluntarily pay it in a chapter 7, although I'm not sure what other legal ramifications you are talking about. Generally you have nothing to lose by looking to discharge it. If they oppose it then you can stipulate to continue paying.
    Answer Applies to: New York
    Replied: 11/3/2014
    D.J. Rausa, Attorney at Law | D.J. Rausa
    The system does not care if you wish to pay back any debt. Feel free to do so, but all debts have to be listed.
    Answer Applies to: California
    Replied: 11/3/2014
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    Simply include it as a debt that cannot be discharged and include the payment as part of your Chapter 13 plan. From your question it appears you are considering filing a Chapter 13 on your own. Rather than trying to do this on your own, retain a competent bankruptcy attorney and let them make sure you do things right. Self-help might look attractive but when it comes to bankruptcy nothing beats having a good lawyer help guide you through the process. There are simply too many traps for the unwary that can adversely affect you for years not to hire a professional. Good luck.
    Answer Applies to: California
    Replied: 11/3/2014
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