Have to Pay Back Unemployment Benefits

[iluvtolaff]

For the state of Indiana

I started on unemployment benefits in February. My former employer appealed the decision and a hearing was held last week. The employer won and now I have to pay back $4400 I received in benefits!! How do they expect someone to do this when they don't have a job?

I am 58 years old and cannot find anything here so I'm moving in with my Mom in Texas in 2 weeks.

My question is would Indiana still make me pay this back and, if so, would they accept low payments? I'm talking $5.00 a month--no kidding! I have no savings to fall back on. No income whatsoever.

Thank you for any help you can give.

[Mr. Knowitall]

You can ask them how they expect you to pay back the benefits.

Their approach will depend on state policy. For example, some states make scant effort to recover the money, but will "pay" future unemployment benefits toward the overpayment until it's paid off.

[iluvtolaff]

Thank you for your reply.

This is the info I garnered from the website:

"You will receive monthly billing notices and other collection letters regarding the amount owed. Should you become eligible for future UI benefits, 100% of each weekly benefit payment may be applied to the overpayment balance until it is paid in full. You may receive notice of a pending civil action by the Attorney General’s Office and/or your Indiana state income tax refunds and lottery winnings may be withheld and applied to the overpayment. DWD may also forward delinquent accounts to a legal collection agent authorized to apply levies, wage garnishments, etc."

It looks like they will hound me to death if I don't pay right away.

[cbg]

Then your first step is to make contact with them and try to arrange for a payment plan. I don't see anywhere that it says the entire amount must be paid in full immediately, but I do know that they're much more likely to be lenient with someone who makes an effort than they will with someone who tries to avoid the issue.

[iluvtolaff]

Thank you cbg. That's what I'll do.

[Rosa19]

Would this be dischargeable in bankruptcy?

[iluvtolaff]

I have no idea. ????

[PattyPA]

Would this be dischargeable in bankruptcy?

Yes, it is.

In the meantime, ask if there is a waiver available. In my prior state of MD, you could ask for a waiver for X period of time that would stop notices and collection actions.