What happens if you don't pay back Washington ESD unemployment overpayment - need advice

they will definitely go after you for it. washington esd doesn't just forget about overpayments

Don't ignore it! Washington ESD has several ways to collect overpayments including tax refund intercepts, wage garnishment, and they can even put liens on property. Plus they'll add penalties and interest that make the debt grow over time.

Washington ESD has several collection methods they can use for unemployment overpayments. They can intercept your state tax refunds, garnish wages (up to 25% in most cases), and place liens on property. They'll also report the debt to credit agencies which will hurt your credit score. However, they typically give you opportunities to set up payment plans before taking these aggressive steps.

i ignored mine for like 8 months and they took my entire tax refund last year, was supposed to get back $1,400 and got nothing

I went through this exact situation last year with a $3,200 overpayment. After spending hours trying to reach Washington ESD by phone with no luck, I found this service called Claimyr (claimyr.com) that actually got me connected to an agent within a few days. They have a video demo at https://youtu.be/7DieNd3C7zQ that explains how it works. The agent was able to set up a payment plan for $75/month which was way better than having my wages garnished.

IMPORTANT: You need to respond to the overpayment notice within 30 days if you want to appeal it. Even if you can't pay it back right now, you should still contact Washington ESD to discuss your options. Ignoring it will only make things worse. They have hardship provisions and can sometimes waive overpayments in certain circumstances.

You need to contact Washington ESD immediately and set up a payment plan. I was in the same boat with a $3,200 overpayment and they let me pay $75/month. It's way better than dealing with garnishments and penalties. The problem is actually getting through to someone at ESD - I tried calling for weeks before I found Claimyr (claimyr.com). They got me connected to an agent the same day and I was able to arrange the payment plan. There's a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

The worst part is they'll also put a hold on any future unemployment benefits until the overpayment is resolved. So if you lose your job again, you won't be able to collect UI until you've either paid it back or set up a payment arrangement.

I owe them $1,900 from 2023 and they already took my entire state tax refund this year. Didn't even give me a heads up, just gone when I went to check on it. Now they're threatening wage garnishment too.

they hit me with interest charges too on top of the overpayment amount. started at $800 and by the time i paid it off it was over $1000

The collection letters get pretty scary too. They make it sound like you're going to jail or something but it's really just a civil debt issue.

If you're considering bankruptcy, unemployment overpayments are generally not dischargeable, so they'll survive even if you file Chapter 7 or Chapter 13. It's better to work with Washington ESD directly on a payment plan.

The worst part is they can also deny future unemployment claims if you have an outstanding overpayment. So even if you manage to avoid garnishment, you're screwed if you need benefits again.

dude just pay it, the stress isnt worth it and it just gets worse over time

Also worth noting - if the overpayment was due to fraud (like not reporting work), the penalties are much harsher. But if it was just a mistake or miscommunication, they're usually more willing to work with you on repayment options.

My cousin had this happen and they garnished 25% of his paycheck for like 8 months. Really hurt his family financially but he said once he started the payments they stopped calling and sending threatening letters.

The interest rate on overpayments is ridiculous too. I think it's like 1% per month or something crazy like that. Every month you wait makes it more expensive.

honestly the washington esd system is so messed up, half the time they create these overpayments because THEY screwed something up but we still have to pay

Just to follow up on the Claimyr thing - I ended up using them again when I had questions about my payment plan and it was totally worth it. Instead of spending hours trying to call ESD, I just used their service and was talking to an agent within minutes. Made the whole process so much less stressful.

whatever you do dont just hope it goes away because it wont, learned that the hard way

One more thing - if you think the overpayment determination was wrong, you can appeal it. You have to do that within 30 days of the notice date though. If you're past that deadline, your only option is working out payment terms.

they can also report it to credit agencies which will mess up your credit score

whatever you do don't ignore it. i ignored mine for two years and it just got worse and worse. interest piled up and they eventually garnished my bank account

I used a different service to get through to Washington ESD when I had an overpayment issue. Took about a week but I was able to get it resolved. Sometimes you just need someone who knows how to navigate their phone system.

The key is to be proactive. Don't wait for them to start collection actions. Call them immediately when you get the notice and explain your financial situation. Most agents will work with you if you're upfront about your inability to pay the full amount.

they also report unpaid overpayments to credit bureaus which tanked my credit score. took years to recover from that even after i finally paid it off

You might also want to check if you qualify for an appeal. Sometimes the overpayment calculations are wrong or based on incomplete information. I successfully appealed mine and got it reduced by half.

The bottom line is Washington ESD has a lot of collection powers and they will use them. Your best bet is to contact them ASAP and work out a payment arrangement you can afford. Don't let this drag on because it only gets more expensive with interest and collection costs.

I used Claimyr last week for a different issue and it worked great. Probably worth the cost just to avoid the headache of trying to get through to ESD on your own. Their phone system is impossible.

Pro tip: when you do get through to ESD, have all your documentation ready. Payment history, work records, everything. They'll want to review the whole case before setting up a payment plan.

bottom line is ignoring government debt never works out well, they have too many ways to collect

Final advice - once you get that payment plan set up, stick to it religiously. Missing payments can trigger immediate collection actions and they might not be willing to negotiate again.

I went through something similar with a $2,100 overpayment from Washington ESD about 6 months ago. Initially I was terrified and considered ignoring it too, but after reading horror stories online about wage garnishments and credit damage, I decided to be proactive. The hardest part was actually getting through to speak with someone - their phone system is absolutely terrible. I probably called 50+ times over two weeks before finally connecting with an agent. Once I did get through, they were actually pretty reasonable about setting up a payment plan. I'm now paying $65/month which is manageable for my budget. The key is contacting them before they start collection actions - once that process begins, you have much less negotiating power. Don't make this harder on yourself by waiting.

I was in almost the exact same situation with Washington ESD last year - $2,400 overpayment that I initially thought about ignoring because I was broke. Big mistake to even consider it. They have serious collection powers and will absolutely use them. I ended up having my tax refund intercepted before I could get a payment plan set up, which really hurt since I was counting on that money. The interest they charge (1% per month) also adds up fast. My advice is to contact them immediately and be completely honest about your financial situation. Most agents will work with you on a reasonable payment plan if you're proactive about it. Just don't wait - every month you delay makes it more expensive and limits your options.