Question $33k unemployment overpayment discharged?

[adr]

I received a discharge order for my Chapter 7 on 2-14-2023. I had a $33k unemployment overpayment from the state. The state claimed it was fraudulent because my certification info was inaccurate. (they claimed I quit, not laid off). The state never filed an AP against me in the required 60 day window. It’s my understanding they were required to do so, even if they considered it fraudulent. Am I safe to assume this debt was discharged?

[justbroke]

Were they scheduled and notified of the bankruptcy? Did they file a claim? Were you convicted of any unemployment insurance fraud? Did you file with through an attorney?

I ask because each of those things could lead to a different answer. You really need an attorney (or your attorney) to look at the facts and see if you didn't fail to meet the requirements for the State to have been properly noticed of the bankruptcy (by State, I mean the ADWS specifically). It could be different if these were fines and not just an simple overpayment. ADWS may still be able to recoup later. All these answers require legal advice that I can't provide.

Unfortunately the answer is... it depends.

[adr]

Were they scheduled and notified of the bankruptcy? Did they file a claim? Were you convicted of any unemployment insurance fraud? Did you file with through an attorney?

I ask because each of those things could lead to a different answer. You really need an attorney (or your attorney) to look at the facts and see if you didn't fail to meet the requirements for the State to have been properly noticed of the bankruptcy (by State, I mean the ADWS specifically). It could be different if these were fines and not just an simple overpayment. ADWS may still be able to recoup later. All these answers require legal advice that I can't provide.

Unfortunately the answer is... it depends.

The state was scheduled and notified and I did hire an attorney. He doesn’t seem to want to communicate now that the discharge order has been issued. Although the state claimed fraud, this is civil fraud and not criminal, the state does not seek to prosecute me, just recoup the money. It’s all overpayment money, there was only $1200 in fines and interest.

[justbroke]

In a Chapter 7, actually, once the 341 Meeting is completed, the attorney likely has no other obligations to fulfill. You'd have to look at your engagement agreement to see what services that you paid for (are entitled to receive). Typically, for a "no look" Chapter 7... that's only up to and including the 341 Meeting and then any things that have to be dealt with between the attorney and the Chapter 7 Panel Trustee.

Off the top of my head -- and I'm not a bankruptcy attorney -- fines are never discharged. As for the other amount, they can likely use recoupment later. (I've dealt with recoupment on the government side... and it is a real thing.) So while the debt, except the fines, is probably discharged (I can't answer your dischargeability question), they can still use recoupment in another way.

If you want to rehire your attorney, setup an appointment and tell them that you'll pay their customary rate to deal with anything additional.