Court Holds Quadruple-Damage Unemployment Penalty is Dischargeable
October 19, 2015
On October 2, 2015 the Bankruptcy Court for the Eastern District of Michigan held that you can discharge the quadruple –damage penalty incurred by overpayment of unemployment benefits through a Chapter 13 discharge.
The Court has decided whether Debtors in a Chapter 13 bankruptcy are able to discharge penalties related to the State of Michigan unemployment reporting errors. The issue was related to the quadruple damage penalty that is statutorily assessed by the State of Michigan Unemployment Agency in certain circumstances, usually for overpayment, incorrect reporting of income, missing deadlines or similar reasons.