Overpayment of wages?

[whywhywhy]

Previous employer is saying they over paid me...

Is that something I can include in my bankruptcy filing?

Thanks much to all.

[HHM]

First question, do you agree? Did they overpay you?

This can be tricky, because if you knew you were being overpaid at the time, and kept the money, that becomes a debt based on fraud, and not dischargeable.

But, there is no specific exception that applies to this situation, so it could conceivably be included in the BK.

[FreshLikeADaisy]

You can always list it on Schedule F (unsecured non-priority debt) as "disputed" and add a note at the bottom explaining what it is so that if it is dischargeable, it gets discharged. (I did that for one of mine -- we'll see how it turns out.) There's a column there where you can put a check if it's a disputed debt. That, and I keep hearing to include every possible debt, no matter how small or insignificant or uncollectable it may seem.

But I agree with HHM, it really depends on what you think of their claim. If they have sent you something in writing and can actually back up their numbers, or you feel like they are litigious and getting ready to go after it legally, I would not hesitate to include it. Worst that can happen is it doesn't get discharged. Plus, if it does get discharged, it puts a stop to the whole thing forever and you don't have to worry about who's right or wrong anyway.

Have you spoken with an attorney yet?

[HHM]

Strictly speaking, you have to include, meaning list, the debt.

In my prior post, I was anticipating the probable question here...would the debt be discharged in BK?

[whywhywhy]

To answer your question, HHM, I didn't know I was being over paid at the time. However, looking at their numbers (assuming they are correct) and policies, it makes sense. So its not something I disagree with, but didn't know it until they said something. To make a long story short, I had two weeks of vacation left. Thought I was paid out vacation when I quit, turns out it depends on what time of year you leave and the two weeks they did pay me was because they just didn't get it stopped in time.

[FreshLikeADaisy]

This is funny.

Accidental severance pay? I'd call that an "unscheduled bonus."

I don't know who you were working for, but they needed to count that as gone the second it left their accounts. What were they thinking, trying to collect from someone who no longer works there? *laugh*

But yeah, list it on your Schedule F and call it disputed: in the description field, put something like "Payroll error -- overpayment claimed by previous employer June 07" and the amount as you normally would.

But don't even think about paying it back, at least not right now. Pre-bankruptcy, you don't need to be making large payments to anyone, even if you could.

If you like them and are on good terms with them, you could repay them honorably post-bk if you were so minded. But if not, they either have take you to court (probably small claims) or write it off.

(But personally, I think that if they're calling it a 'debt' you owe them, they need to take that amount out of their "We Messed Up" fund, because that is most certainly what they did! In general, if they erred, they eat it -- especially in larger companies (not all, though: some will direct DEBIT anything they say you owe them, just as they direct deposited it to begin with, and with no warning). But when you no longer even work there, and it's their error... they should know better. That's just my opinion, though, so take it with a grain of salt.) Good luck to you!