In 2020, I filed for unemployment due to COVID after losing my childcare jobs. Apparently, I missed sending some paperwork, and they said I had to pay it all back. I fought this case through phone hearings with judges, but after moving, I lost contact. In 2023, they started garnishing 17% of my wages, which made it hard to get by. I recently got a new job, and the garnishment hasn’t followed me yet, but I’m worried it will. The debt has gone from $35k to about $25k with the garnishments, but they’re also adding $10k in fees. Is there a way to set up monthly payments instead of garnishment? Can I still fight this or appeal the case? I’m a full-time student and working full-time, and I need a way to get out of this financial mess.
You might be able to negotiate a repayment plan directly with the unemployment agency, but it depends on their policies. Call them to ask about setting up monthly payments.
Rin said:
You might be able to negotiate a repayment plan directly with the unemployment agency, but it depends on their policies. Call them to ask about setting up monthly payments.
Agreed. Be upfront about your financial situation. Sometimes they’re willing to work with you to avoid garnishments, especially if you’re proactive.
Rin said:
You might be able to negotiate a repayment plan directly with the unemployment agency, but it depends on their policies. Call them to ask about setting up monthly payments.
Keep in mind, any delays in payments could put you back into garnishment, so make sure you can stick to the terms if they agree.
You can appeal or request a review of the case if you believe the amount is incorrect or the fees are unfair. It might be worth consulting a local attorney who specializes in unemployment claims.
Reece said:
You can appeal or request a review of the case if you believe the amount is incorrect or the fees are unfair. It might be worth consulting a local attorney who specializes in unemployment claims.
Exactly. A lawyer could help you navigate the appeals process and potentially reduce the amount owed or eliminate the fees.
Another option is filing for bankruptcy, like Chapter 13, to manage the debt through a repayment plan. Not all unemployment overpayments are dischargeable, though, so consult a bankruptcy attorney first.
@Parker
Good point. Bankruptcy might stop garnishments temporarily and let you consolidate the debt into manageable payments.
Contacting a local debt settlement attorney could also help. They might be able to negotiate a lump-sum settlement or lower the total debt.
If you just started a new job, the garnishment could follow you soon. It’s best to act now to address the issue before it happens again.
Kim said:
If you just started a new job, the garnishment could follow you soon. It’s best to act now to address the issue before it happens again.
Exactly. Being proactive could prevent the situation from worsening. Don’t wait for the garnishment to start again.