CHAPTER 7 DISCHARGE UNEMPLOYMENT DEBT IN MICHIGAN

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I have a question that no one can seem to answer.  I was laid off last year and collected unemployment in Michigan.  I then got a job and called the unemployment office and cancelled it.  The idiot at the Michigan unemployment department inputted the information incorrectly and I just got a bill for over $60,000!!!!!  The funny thing is that the amount that I would owe is about $6,000, but with “penalties” and “interest” they claim that it is that much.  I have called the Michigan unemployment agency for hours and hours and hours…….  NO ONE ANSWERS.  I have some credit card debt and would just like to be done with this.  Can I dump this debt in Chapter 7 bankruptcy??????

Comments

  1. Peter Torrice on April 10, 2014 at 7:55 pm said:

    Thank you for visiting http://www.AllLegalMatters.com and Canu Torrice Law. This question is a great question and one that I receive quite a bit. The problem that you are having is one that many of my clients have with the Michigan Unemployment Agency. The Michigan Unemployment Agency charges enormous fees and penalties and it is very difficult to get ahold of anyone there.

    You really have two options. The first option would be to ask for a hearing. Depending on when you received the letter you have a limited amount of time to request such hearing. If you did not request a hearing then it may be difficult for you to dispute the amount of money they are claiming you owe.

    If in fact you did not request a hearing it is possible that you may discharge the Michigan Unemployment debt in either a Chapter 7 or Chapter 13 bankruptcy. As long as there was not a fraud involved in the receipt of the funds it can be argued that the debt is dischargeable if you were to complete a Chapter 7 or 13 bankruptcy and receive a discharge. Additionally, it is very unlikely that the Michigan Unemployment Agency will come to the United States Bankruptcy Court and dispute the dischargeability of this debt.

    For me to be able to give you a more in depth answer an analysis of this I would have to meet with you to go over your case. As always we give free consultations and will review every aspect of your case to give you the correct advice.

    Peter A. Torrice
    CANU TORRICE LAW
    32059 Utica Road
    Fraser, MI 48026
    586-285-1700
    http://www.AllLegalMatters.com
    peter@AllLegalMatters.com

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