Are Statutory Penalties for Overpayment of Unemployment Insurance Benefits Dischargeable in Chapter 13?

By Karin N. Amyx, Staff Attorney, Laurie B. Williams, Standing Chapter 13 Trustee - Wichita

State agencies often file non-dischargeability complaints asserting that debtors fraudulently received unemployment insurance (“UI”) benefit payments. These debts can include interest, fees and stiff statutory penalties. Debts, fees and penalties deemed non-dischargeable pursuant to § 523(a)(2) are not discharged in Chapter 7 or Chapter 13.1 However, if a statutory penalty is deemed non-dischargeable exclusively under § 523(a)(7), it may be dischargeable in Chapter 13 – depending on who you ask. Contrary decisions coming out of . . .

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Parker, HOA, and Sanctions – Multiple Thrills to a Bankruptcy Lawyer’s Heart

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By Cathy Moran, Esq., (Redwood City, CA) I don't know just what makes Parker such a treat for me, but it delivers multiple thrills to my bankruptcy lawyer heart. It's a stay violation case with a BIG sanctions award. It's a clearly, simply written opinion that lays out the circuit law on multiple issues. It hits hard at HOA hubris....

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By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division (Toledo, OH) Click here for Part 1 of 6 Click here for Part 2 of 6 Click here for Part 4 of 6 Click here for Part 5 of 6

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Thomas D. DeCarlo

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So, what happens to post-petition appreciation of assets during a Chapter 13? Does the Debtor get to keep the money? Or does the Chapter 13 Trustee get it for the benefit of creditors? That was the question for the Court in In re Klein, 2022 WL 3902822 (Bankr. D. Colo. 2022). The question in Klein is a bit different than...

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By Jan M. Sensenich, Chapter 13 Standing Trustee for the District of Vermont As we reach the end of the first month of the partial government shutdown, with no end in sight, 800,000 federal workers have started missing their paychecks. As the shutdown continues, Chapter 13 trustees are weighing how best to address the inevitable question from federal government employee...

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