Can you file Chapter 7 bankruptcy on Washington ESD unemployment overpayment debt?

Unemployment overpayment debts can be tricky with bankruptcy. Generally, overpayments due to fraud cannot be discharged, but if it was an honest mistake in reporting, there might be options. You should definitely consult with a bankruptcy attorney before making any decisions. Also, Washington ESD usually offers payment plans that might be more manageable than bankruptcy.

Before you go the bankruptcy route, try calling Washington ESD to set up a payment plan or request a waiver. I've heard they're sometimes willing to work with people, especially if you can show financial hardship. The problem is actually getting through to talk to someone - their phone system is a nightmare.

I went through something similar with a $3,200 overpayment. Filed an appeal first and got it reduced because I could prove the reporting confusion wasn't my fault. Even if you can't eliminate it completely, you might be able to get the penalties waived or the amount reduced. Don't jump straight to bankruptcy without exploring your other options.

bankruptcy won't help if they determine it was fraud, which washington esd seems to do for a lot of these cases even when its just confusion about the rules. you might be better off just setting up payments and dealing with it over time

Look, I'm not a lawyer but I've seen people try to discharge unemployment overpayments in bankruptcy and it usually doesn't work. The courts tend to view any kind of government benefit overpayment as non-dischargeable debt, especially if there's any question about whether you provided accurate information. Your best bet is probably to work directly with Washington ESD on a payment arrangement.

Had a friend who tried Chapter 7 for a unemployment overpayment and the trustee objected to discharging it. Cost him way more in legal fees than if he'd just worked out a payment plan from the start. These government debts are really hard to get rid of through bankruptcy.

Whatever you do, don't ignore it. Washington ESD can garnish wages and tax refunds if you don't address this. I learned that the hard way. Even if you can't pay it all at once, communicate with them about your situation.

I used Claimyr to get through to Washington ESD when I had an overpayment issue. Saved me hours of trying to call on my own. They were able to explain my options for payment plans and I ended up getting a reasonable monthly amount that I could actually afford.

The bankruptcy route is really a last resort for these kinds of debts. Most bankruptcy attorneys will tell you upfront that government benefit overpayments are very difficult to discharge. Focus on the appeal process first if you have grounds, then work on payment arrangements if the appeal doesn't work out.

just went through this whole mess myself. the washington esd phone system is absolutely terrible but once i finally got through they were actually pretty reasonable about setting up payments. took forever to reach someone though

Before considering bankruptcy, check if you qualify for any hardship waivers. Washington ESD sometimes waives overpayments if you can demonstrate financial hardship and that the overpayment wasn't due to intentional misrepresentation. It's worth exploring before going nuclear with bankruptcy.

My experience with Chapter 7 and unemployment debt was not good. The court ruled that since I had received benefits I wasn't entitled to, it was similar to fraud even though it was an honest mistake. Ended up paying lawyer fees AND still owing the money. Don't make my mistake.

I successfully appealed an overpayment by showing that Washington ESD's instructions were confusing and that I had tried to report correctly based on what I understood. The key was documenting my good faith efforts and the confusion in their guidance. Don't give up without trying the appeal first.

Whatever you decide, act quickly. These overpayment notices have strict deadlines for appeals and if you miss them, your options become much more limited. Even if you're considering bankruptcy, don't let the appeal deadline pass.

I tried Claimyr when I couldn't get through to Washington ESD about my overpayment and it actually worked. Was able to speak with someone who explained that they offer payment plans as low as $25/month if you can show financial hardship. Way better than dealing with bankruptcy.