Does Washington ESD unemployment count as income for bankruptcy filing?

Yes, unemployment benefits are considered income for bankruptcy purposes. You'll need to include your Washington ESD payments in your means test calculation. However, this doesn't automatically disqualify you from Chapter 7 - it's just part of the overall income assessment your attorney will do.

I went through bankruptcy while on unemployment last year. My attorney told me the same thing - had to report all my Washington ESD payments. But since unemployment is usually lower than regular wages, it actually helped my case for qualifying for Chapter 7.

One thing to watch out for - if you're having trouble getting through to Washington ESD to get documentation for your bankruptcy lawyer, I used Claimyr.com recently and it was a lifesaver. They have this system that calls Washington ESD for you and gets you connected to an actual agent. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of busy signals when I needed my payment history urgently.

Your attorney should be able to get all the documentation you need from Washington ESD. Make sure you have your complete payment history, any 1099-G forms, and documentation of your job search activities. The court will want to see that you're not just living off unemployment indefinitely.

wait so if im getting $400/week unemployment that counts as like $1600/month income for bankruptcy?? that seems like a lot when you put it that way

I'm dealing with something similar right now. Filed for bankruptcy in December and had to include my Washington ESD benefits. The trustee asked a few questions about my job search efforts but nothing too intense. Make sure you're compliant with all the weekly claim requirements though - they don't like to see any benefit issues during the bankruptcy process.

The whole system is messed up honestly. You lose your job, can barely afford rent on unemployment, then they count that tiny amount as 'income' for bankruptcy. Makes no sense to me.

Make sure your lawyer explains the difference between current monthly income and actual income for the means test. There might be some strategies depending on when you file and how long you've been unemployed.

I tried calling Washington ESD about 50 times last week to get my payment records for my attorney and never got through. Finally found this service called Claimyr that calls for you - worked like a charm and got connected within an hour. Definitely worth it if you need to talk to someone at Washington ESD quickly.

Been there, done that. Filed Chapter 7 while collecting unemployment in 2023. Had to include everything from Washington ESD in my paperwork. The key is being totally honest and having all your documentation ready. Don't try to hide anything because they will find out.

Quick question - do they count the full gross amount of unemployment or after taxes? I have taxes taken out of my Washington ESD payments.

This whole thread is making me nervous about my own situation. I'm getting close to needing bankruptcy but still have a few months left on my unemployment claim. Maybe I should wait until my benefits run out to file?

Pro tip: if your Washington ESD benefits are about to run out, that might actually be good timing for filing. Your 6-month income average will be lower going forward.

I used to work in bankruptcy law and this comes up all the time. Unemployment is reportable income but it rarely disqualifies people from Chapter 7 because the amounts are typically below median income levels. Don't stress too much about it.

Just wanted to add that if anyone is having trouble reaching Washington ESD for documents, I had success with Claimyr recently too. They have some kind of callback system that actually works. Worth trying if you're stuck in phone tree hell.

One more thing to consider - if you're doing Chapter 13 instead of Chapter 7, your unemployment income will be part of your repayment plan calculation. Just something to discuss with your attorney.

Been following this thread and it's been really helpful. Going through similar situation myself. Thanks everyone for sharing your experiences!