Q: My bankruptcy was finalized 6 months ago. I was let go from my job 2 months ago and applied for unemployement until I
found a new job. EDD got back to me and said I had overpayements from 2019 and 2020 and owe $6k which I am appealing because I believe it is incorrect. But my question is, even if EDD is correct and they did overpay me, shouldn't that debt be discharged because my bankruptcy was finalized 6 months ago even if EDD didn't catch it until now?
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A: Based on what you have said, I'm assuming that you did not list EDD as a creditor when you filed your bankruptcy. Start by advising EDD of the bankruptcy and telling them that you will ask the court to reopen your case so that you can list EDD as a creditor. That may make them go away. If it doesn't, you will have to reopen your case and list EDD. The court may or may not allow you to do so. Also, if the overpayment resulted from any kind of fraudulent conduct on your part (like filing a false claim), EDD can seek to bar the discharge of that debt, which means that they can collect it even after the bankruptcy. You should consult an attorney in your area. Most offer free consultations.
Timothy Denison agrees with this answer
A:
I agree with you. If you had a "no asset" BK, the debt is probably discharged even though you did not list it! So this should be good news.
I suggest you let the EDD know about the BK and tell them it is your position that their claim is discharged regardless of the non scheduling of it because you did not know about their claim.
However, the EDD is still allowed to offset any future claim you file against the overpayment claim that you have discharged.
Please note the court will NOT reopen your case to let you list the EDD, because the courts consider it a waste of their time to reopen a "no asset" case to schedule an unlisted claim. Most lawyers who are not true BK specialists do not know this! The law considers the unlisted claim to be discharged anyway in a "no asset case."
Timothy Denison agrees with this answer
A: PS: In other words, you won't get any new benefits until the overpayment has been offset!
Timothy Denison agrees with this answer
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