Another one...from majormike the pain in the WAZOO!

[MajorMike]

I was unemployed back in 2006 for a brief time and got unemployment insurance of $400/week. About 6 months after that time, I got a letter from unemployment saying that they overpaid me a week and a half. I filed online and you had to file on Sunday for the previous week. Long story short, I took a small marketing job on the side and got $120 for it so they are telling me I worked that week and I couldn't claim unemployment. Ok, makes sense.
I filed BK and the State hasn't filed a claim on that money yet. Will it come from my state refund this year? I thought the state HAD to file a claim as they are a governmental unit or do they get the money regardless of if they file a claim kind of like when you own a car and the finance company doesn't file but it's a secured item and you have to pay it anyway?
Would they be allowed to take that state refund and apply it toward my back unemployment that I owe or can they NOT touch it because I put them in my BK 13?
wow, I didn't realize I was such a problem child! I dont care if they take it, I just wanted to know so I'm prepared. I need to pay the IRS $650 of that refund too.

[mcdulph]

I believe those overpayments can be included in the Chapter 13.

I remember that questionnaire from hubby's lawyer specifically asked whether there were any overpayments of unemployment, AFDC, Food Stamps, or any of that other stuff. So I'm going to guess that it's either dischargeable or can be included as a priority unsecured debt.

BTW, shouldn't they only be taking back $120/week of the unemployment, not the whole amount? I'm pretty sure that's how it worked when I was on unemployment and had a temp job for a few weeks. Of course, perhaps different states are different.

[Flamingo]

I believe those overpayments can be included in the Chapter 13.

I remember that questionnaire from hubby's lawyer specifically asked whether there were any overpayments of unemployment, AFDC, Food Stamps, or any of that other stuff. So I'm going to guess that it's either dischargeable or can be included as a priority unsecured debt.

BTW, shouldn't they only be taking back $120/week of the unemployment, not the whole amount? I'm pretty sure that's how it worked when I was on unemployment and had a temp job for a few weeks. Of course, perhaps different states are different.

It may be a state thing. In our state even if you start a job on a Friday and do not work from that Monday to Thursday on that job, you do not get unemployment for the entire week. That all has to be listed on the card that you send in so when one goes back to work after being on unemployment, it's best to try to start on a Monday and not think you can get unemployment for 4 days if you start a job on a Friday or any other day of that week. It is not a prorated thing in our state.

[MajorMike]

It's already included in the BK 13. My question was, do you think they'll take our state tax refund or are they not allowed to since it is part of the 13? The state has NOT filed a claim on this money as of today

[rrockinggramma]

I suppose every state is different but in Michigan I owed for 2001 taxes. I put them in my chapter 13. Now because I didn't file my taxes until 2003 etc mine are not dischargeable but they never filed a claim in my chapter 13. And they cannot withhold your refund (at least in Michigan) until after discharge. So, I am sending them in their money in May with my refund check from the federal government (stimulus) just to get it done. So I bet they don't withhold your refund.

[MajorMike]

This isn't for taxes either, it's unemployment compensation which is paid by my employer I believe?