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Post BK, got collections letter for Unemployment...


inovermyhead
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Hi! I just got a collections letter regarding my $250 UI pmt from 3 years ago (we exhausted our appeals process except the last step, we can't afford to take the final try.)

My BK was discharged a couple of months ago. Does anyone know about VA laws regarding repayment of unemployment benefits? Thank goodness it's only $250, but we just don't have it.

TIA!

:?:

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  • 2 weeks later...
Hi! I just got a collections letter regarding my $250 UI pmt from 3 years ago (we exhausted our appeals process except the last step, we can't afford to take the final try.)

My BK was discharged a couple of months ago. Does anyone know about VA laws regarding repayment of unemployment benefits? Thank goodness it's only $250, but we just don't have it.

TIA!

:?:

More info. please!

Why would you have to repay any unemployment benefits?

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Repayment of unemployment benefits happens if you have overlap in jobs. UI benefits are paid current, while most employers pay in arrears. Some people make the mistake of cashing that last unemployment check after they have started a new job thinking it covered the week prior to starting work...it doesn't...

I made that mistake once myself.

UI benefits are not discharged by bankruptcy. They are considered the same as any governmental tax lien. Debts owed to the government survive bankruptcy. So you will have to pay it.

It is really unusual for a 3rd party collector to be involved in this. The State usually just takes it our of your Federal or State tax refunds until it is paid off. My nose tells me that if this is a CA contacting you about it, that they may not be legit. Procede with caution.

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