Ch13 and Unemp Comp Debt

[Flamingo]

In trying to understand Ch13, I thought I'd contact another attorney to see what he would say. I researched attorneys and found one that had an excellent rating and called him.

He told me that unemp comp is not quite like taxes in this case because the burden is on the creditor to PROVE it was fraud. He suggested filing Chapter 7 and waiting to see if the creditor objects. He said that they might in which case I would lose the lawsuit BUT there would then be a chance to negotiate what's paid back.

He said if all fails, I could convert to a 13.

Any comments?

Good luck in trying to negotiate with your State Deparment of Labor. It doesn't take much for them to prove you were working while you were receiving Workman's Compensation. All they need is your SS# which they have. The BK Code specifically indicates what is and what is not dischargeable in BK. While I don't have the time at the moment to look this up specifically as I am running to a baby shower in a few minutes, someone else can maybe help you or you can look up the code section yourself. I understand the entire Code is laid out in the Wiki section now here on the forum. I think the second attorney was trying to get your business and I would thoroughly research this if you are that concerned about it. I personally do not think you are going to be able to get out of it. This is money paid to you by the State for not working and here you were working while receiving it not notifying the State to stop sending payments.

Best of luck to you!

[BigJohn]

spearmint, where you working 'under the table'?

How long were you working while still collecting unemployment? And about what date did you start?

The reason I ask is unemployment is generally paid each quarter.