Ready to say goodbye to student loan debt for good? Learn More
2020 Best Invention

Unemployment Overpayment & Bankruptcy

1 minute read Upsolve is a nonprofit tool that helps you file bankruptcy for free. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card. Explore our free tool

In a Nutshell

If you’ve been notified that you’ve received an overpayment of unemployment benefits, you’re probably wondering whether this will impact your bankruptcy. Here’s what you need to know.

Written by Attorney Andrea Wimmer
Updated August 24, 2021

If you’ve been notified that you’ve received an overpayment of unemployment benefits, you’re probably wondering whether this will impact your bankruptcy. Here’s what you need to know: 

Unemployment overpayment is a debt.

It has to be listed on your Schedule E/F as a general unsecured nonpriority debt. As with all government debts, the most important thing will be to make sure you have the correct address to list on the schedules. Check the most recent notice or letter you received about this and make sure you’re using the “correspondence” address, not the “payment address” if they are different.

Upsolve User Experiences

2,231+ Members Online
Lesh Brown
Lesh Brown
★★★★★ 1 day ago
Terrific app and people. Made this very easy
Read more Google reviews ⇾
OKC Twister Cab
OKC Twister Cab
★★★★★ 1 day ago
hey they are great people helped me out.
Read more Google reviews ⇾
Jeffery Maxey
Jeffery Maxey
★★★★★ 1 day ago
The process is easy and they walk you through everything. Most of us can’t afford the lawyer fees so this helped out alot
Read more Google reviews ⇾

Unemployment overpayment is dischargeable.

Even though this is a debt owed to a government agency, it is erased by a bankruptcy discharge. But, just like with any other debt, if the creditor (in this case the unemployment office) feels that you intentionally misled the agency so you could continue to receive unemployment benefits, they can object to the discharge of the debt. 

How will I know whether there’ll be an objection to the discharge of this debt? 

Unfortunately, you won’t know until the objection is filed with the court. Keep in mind, though, that the objecting creditor will have the burden of proving to the court that you intentionally defrauded them. That’s a high burden for them, so these objections are pretty rare. 

What about pandemic unemployment assistance? 

The same general rules apply to the overpayment of any of the unemployment benefits you received from the state and/or federal government as part of a COVID-19 relief package.

Written By:

Attorney Andrea Wimmer


Andrea practiced exclusively as a bankruptcy attorney in consumer Chapter 7 and Chapter 13 cases for more than 10 years before joining Upsolve, first as a contributing writer and editor and ultimately joining the team as Managing Editor. While in private practice, Andrea handled... read more about Attorney Andrea Wimmer

It's easy to get help

Choose one of the options below to get assistance with your bankruptcy:

Free Web App

Take our screener to see if Upsolve is right for you.

Take Screener
12,249 families have filed with Upsolve! ☆

Private Attorney

Get a free bankruptcy evaluation from an independent law firm.

Find Attorney

Learning Center

Research and understand your options with our articles and guides.

Go to Learning Center →

Already an Upsolve user?

Read Support Articles →

Upsolve is a 501(c)(3) nonprofit that started in 2016. Our mission is to help low-income families who cannot afford lawyers file bankruptcy for free, using an online web app. Our team includes lawyers, engineers, and judges. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations. It's one of the greatest civil rights injustices of our time that low-income families can't access their basic rights when they can't afford to pay for help. Combining direct services and advocacy, we're fighting this injustice.

To learn more, read why we started Upsolve in 2016, our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.